corporate presentation february 2015 - caixabank...feb 03, 2015 · 10th eurozone bank by market...

February 2015 Corporate Presentation

The leading force in Spanish retail banking

Disclaimer

The purpose of this presentation is purely informative and the information contained herein is subject to, and must be read in conjunction with, all other publicly available information. In particular, regarding the data provided by third parties, neither CaixaBank, S.A. (“CaixaBank”), nor any of its administrators, directors or employees, is obliged, either explicitly or implicitly, to vouch that these contents are exact, accurate, comprehensive or complete, nor to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents in any medium, CaixaBank may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any deviation between such a version and this one, assumes no liability for any discrepancy. This document has at no time been submitted to the Comisión Nacional del Mercado de Valores (CNMV – the Spanish Stock Markets regulatory body) for approval or scrutiny. In all cases its contents are regulated by the Spanish law applicable at time of writing, and it is not addressed to any person or legal entity located in any other jurisdiction. For this reason it may not necessarily comply with the prevailing norms or legal requisites as required in other jurisdictions. CaixaBank cautions that this presentation might contain forward-looking statements. While these statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. Statements as to historical performance, historical share price or financial accretion are not intended to mean that future performance, future share price or future earnings for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast. This presentation on no account should be construed as a service of financial analysis or advice, nor does it aim to offer any kind of financial product or service. In particular, it is expressly remarked here that no information herein contained should be taken as a guarantee of future performance or results. In making this presentation available, CaixaBank gives no advice and makes no recommendation to buy, sell or otherwise deal in CaixaBank shares, or any other securities or investment whatsoever. Any person at any time acquiring securities must do so only on the basis of such person’s own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in this presentation. Without prejudice to legal requirements, or to any limitations imposed by CaixaBank that may be applicable, permission is hereby expressly refused for any type of use or exploitation of the contents of this presentation, and for any use of the signs, trademarks and logotypes which it contains. This prohibition extends to any kind of reproduction, distribution, transmission to third parties, public communication or conversion into any other medium, for commercial purposes, without the previous express permission of CaixaBank and/or other respective proprietary title holders. Any failure to observe this restriction may constitute a legal offence which may be sanctioned by the prevailing laws in such cases. In so far as it relates to results from investments, this financial information from the CaixaBank Group for FY 2014 has been prepared mainly on the basis of estimates.

2

3

Index

1. CABK at a glance p. 4

2. Competitive stance p. 8

3. Balance sheet strength p. 20

4. Diversification p. 29

5. Financial performance update: FY14 p. 33

6. Strategy update p. 49

Appendix: p. 63

Corporate governance Ratings Financial statements

CaixaBank [At a glance]

4

The leading financial group in Spanish retail banking

At a glance

#1 retail bank in Spain

13.4M clients: largest base in Spain

€197 bn in loans; €272 bn in client funds

5,251 branches; 9,544 ATMs: best-in-class multi-channel platform

Main banking relationship for more than 1 out of every 5 Spaniards

Leader in online & mobile banking

Highly-rated brand: based on trust and excellence in quality of service

~€25 bn Market capitalisation; 10th Eurozone bank by market cap. Listed since July 1st 2011

Best-in-class capital metrics: CET1 B3 FL at 12.3%; phase-in at 13.1%

Outstanding NPL Coverage ratio: 55%

Ample liquidity: €56.7 bn

Stable funding structure: LTD ratio 104%

Aiming at a sustainable and socially responsible banking model

Proud of our heritage: 110-year history

Deeply rooted values: leadership, trust, and social commitment

Flagship institution Robust financials Solid heritage & values

Diversification Performance Strategy At a glance Competitive stance Balance sheet Appendix 5

All data as of December 31st 2014

2007 2013

Strategic plan 2007 - 2010 Strategic plan 2011 - 2014

• Internationalisation • Criteria IPO

• Growth in retail banking market share • Rationalising the cost base

“Making the difference”

2010/11

Leadership in Spanish retail Banking

International banking: diversification

IPO: access to stock market

Reaching 15% market share in Spain

Bolstering balance sheet strength

Value creation: financial & social

2012

“Leadership in retail banking”

2008 2014

IPO Acquisitions Transformation

of "la Caixa" into a Banking

Foundation

Acquisitions

(ESPANYA)

Acquisitions IPO

Insurance 50% CaiFor

“la Caixa”

Group Reorganisation

2011

Aiming for long term sustainable growth

A consistent growth story

Acquisition

BBSAU

6 Diversification Performance Strategy At a glance Competitive stance Balance sheet Appendix

http://www.etea.com/c/document_library/get_file?uuid=619b514a-3cb1-43da-8183-e7f2df5708ff&groupId=27583

A streamlined organisation of the Group

(1) As of December 31st 2014. Fully diluted stake in 2017: ~ 56%. (2) Unlisted portfolio. Latest stake figures reported by Criteria CaixaHolding. (3) Including 100% of Caixa Capital Risc, 100% of Mediterranea Beach and Golf Community and the Real Estate business.

~59%1

Industrial/Real Estate

100%

(11.9%) (5.3%)

(9.0%) (18.7%) (20.5%) (44.1%) (9.9%)

Financial

100%

Group structure

Building Center (100%); Sareb (12.4%); Servihabitat Serv. Inm. (49%)

Industrial/Real Estate2

Other 3

(34.4%) (19.2%) (5%) (50.1%) (20%)

Bank-Insurance activities, supported by financial subsidiaries

International Banking portfolio 1 Retail Banking & Insurance

Insurance business

Specialised financial services:

100%

100%

100%

49%

Asset management: InverCaixa

VidaCaixa Group VidaCaixa SegurCaixa Adeslas

49.9%

100%

100%

Credit cards: CaixaCard

Consumer finance: Finconsum

PoS payments: Comercia Global Payments

Welfare program

7

In June 2014, “la Caixa” became a banking foundation

and in October it completed the formal reorganisation of

the Group after segregating to Criteria CaixaHolding

liabilities and assets, including its stake in Caixabank.

1

3

2

1

2

3

Diversification Performance Strategy At a glance Competitive stance Balance sheet Appendix

http://www.vithas.es/

Competitive [Stance]

8

Leading position in Spanish retail banking underpinned by a competitive business model

Competitive stance

Leader in retail banking

Quality of service + Trustworthy brand

Robust financials

Solid values

Segmentation

Omni-channel

distribution network

Innovation &

Technology

Wide-ranging product offering

through an integrated platform


47%

23%

11%

3% 7%

9%

Private Banking3

Affluent Banking

SME Banking

Retail Banking

Business Banking

Corporate Banking

Segmented businesses: key to meet client needs and bolster business volumes

(1)

Retail banking 12.6M customers

SME Banking

Business Banking

Corporate Banking

Affluent Banking

Private Banking

Wealth Banking

(0.5)

(10) (200)

(9)

(0.1)

Individuals, in Million (assets managed range, €M)

Companies, in Million (turnover range, €M)

(1) Excluding public sector, as of December 31st 2014. (2) Loans + customer funds. Excludes RE developers and public institutions ,as of December 31th 2014. (3) Including Wealth Banking.

Segmentation

Business volume breakdown by segment2

In %

Customer breakdown by segment

In Million Customers1

13.4 M customers

0.7M 0.09M

0.04M 0.04M

Specialised network

Specialized sales force

The largest customer base

A highly segmented business

model based on specialisation

and quality of service

10 Diversification Performance Strategy At a glance Competitive stance Balance Sheet Appendix

+

Unless noted otherwise, data as of December 2014

Best-in-class omni-channel distribution network

(1) Latest available data. (2) Latest available data. Own calculations and BdE estimates (3) In branch timetable. Operations considered: withdrawals, cash deposits, savings account updates, bill payments and cheque deposits. Last available data (4) Source: Comscore.com. As of November 2014. (5) Operations considered: national bank transfers, Buy/sell stocks, bank bills (bill discount and bill acceptance). (6) Own calculations

Mobile banking: Global leadership 4.4 million customers6

22% of transactions

Internet banking: European leadership 10 million customers 34,4% online market penetration4

84.09% absorption ratio for businesses5

ATMs: the widest network in Spain 9,544 ATMs 19% market share2

75.91% absorption ratio3

Omni-channel distribution network


Branches: the largest footprint (17.3% market share)1

Breakdown of branch market share

9.2% 10.8% 11.8%

30.6%

6.6%

30.0%

22.9%

14.2%

13.7%

26.9% 19.0% Ceuta

10.0% Melilla

10.9%

8.1% 10.3%

13.9% 16.3%

7.6%

18.9%

18% 41%

6% 5%

0-2 3-4 5-7 8-9 >10

30%

Low ratio of employees per branch

Breakdown of branches by number of employees, in % Dec-14

5,251 Branches

0.4 0.6 1.1

1.9

2.8

3.4

2009 2010 2011 2012 2013 2014

Focus on omni-channel banking reduces costs and increases clients’ perceived value

21% 11% 9% 8%

20%

14% 10% 9%

41%

34%

29% 29%

18%

41% 52% 54%

2004 2009 2013 2014

Digital channels gain importance Transactions by channel1 (%)

Internet &

Mobile

(Mobile: 21%)

Branches

ATMs

OPSs and

automated

Exponential growth of active internet & mobile clients2

+67% +86%

+73%

+49% +21%

X 8

34.4% Online

Penetration3

(1) Total number of transactions in 2014: 6,978, up +20% yoy. A transaction is defined as any action initiated by a client through a contract with CaixaBank. Last data available (2) Active customers include those who have been connected at least once in the last 12 months (3) Closest competitor: 17.4%. Source: Comstore

3.0 3.2 3.5 4.4

5.1 5.5

2009 2010 2011 2012 2013 2014

+10% +9%

+26% +15% +8%

Active online banking customers In M

Active mobile banking customers In M

… freeing up retail network resources to perform advisory and other higher value-added tasks

Omni-channel distribution network

12 Diversification Performance Strategy At a glance Competitive stance Balance Sheet Appendix

X 1.8

IT: Integral to our culture and key to meet evolving customer preferences

Innovation & Technology

New “A” flagship branches Adapting to changing customer needs The new flagship branches serve as living labs, experimenting within

the branch

Enhancing customer centricity Leading adopter of banking mobility solutions

Use of digital signatures to close contracts away from the branch Released to ~4,000 sales people. Ongoing roll-out to all segments

Reduces costs, improves user experience and increases perceived value

Next-generation ATMs

8,500 high-performance multi-functional ATMs €500 M investment over a 10 year period

Wearable banking

CABK apps for new devices Google glasses: branch finder, currency convertor

Engaging digital consumers and fostering cross-channel integration

Contactless and NFC technologies

NFC mobile payment system (partnership with three main mobile operators Movistar, Vodafone and Orange)

1st in Europe to launch contactless bracelet

Leading the development of new payment technologies

13

2014


http://www.google.es/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=hYScgQBRroa20M&tbnid=o2tUsKzqVKoOmM:&ved=0CAYQjRw&url=http://www.capitalmadrid.com/2014/1/29&ei=QvAmU7nsOIKd0AXU24DgBw&psig=AFQjCNE3EE_mVl4qZdgfR7lc1Iu2-5dqgg&ust=1395146763372273

http://www.thebanker.com/Awards/Innovation-in-Technology-Awards/Innovation-in-Technology-and-Transaction-Banking-Awards-2013

Wide-ranging product offering through a single integrated platform

Business Key 2014 figures Company % ownership

Life insurance

€52.8 bn AuMs (1)

#1 in Spain VidaCaixa 100%

Asset Mngmt.

€37.5 bn AuM (2)

#2 in Spain InverCaixa 100%

Credit cards

€25.4 bn turnover (2)

13.3 M cards CaixaCard

100%

Consumer Finance

€1.2 bn Assets

€637 M new business Finconsum 100%

Non-life insurance

€2.1 bn premia

SegurCaixa Adeslas

49.9%

Payments at point of sale

€31.3 bn turnover(2)

266,240 PoS terminals

Comercia Global Payments

49%

14

Revenue diversification

Cost competitiveness

Ownership preserved throughout the crisis

Significant contribution to ROE

Economies of scope

One-stop financial shop

(1) Assets under Management (2) 12 months


Well-positioned to exploit niche market opportunities

5,685 Branches1

o.w. 386 Branches

# # CaixaBank branches AgroBank branches

386 specialised branches 468 with specialised

(1) Includes branches and representative offices abroad

220

87

458

131 964 283

177

682

48 181 186

195

86

1.528 332

29

4 Ceuta 2 Melilla

50

75

5 192

3

18

34 15

1

6

30

1

16 15

Bespoke service

15

1 M agricultural, livestock and farming businesses in Spain

3% of GDP

325,000 (28%) Clients (market penetration)

+28,057 admission from launched

Agricultural business segment

Specialised models by segment

Proximity

Specialised sales force

+ Quality of

service

One-stop financial services provider

Leading adopter of

mobility solutions

Bespoke product &

service offering

NETWORK CAPILLARITY

SINGLE PLATFORM TECHNOLOGY

SEGMENTATION

Launched September 2014

Diversification Performance Strategy At a glance Competitive stance Balance Sheet Appendix

https://shacon.ia.lacaixa.es/sites/0073/Documents/325962/AGROBANK_12/index.html

https://shacon.ia.lacaixa.es/sites/0073/Documents/325962/AGROBANK_12/index.html

Highly rated quality of service and trustworthy brand

Customer satisfaction

16

Premium brand reputation: Awards and recognitions

European Seal of Excellence +600 EFQM: European Foundation for Quality Management

Bank of the Year in Spain 2013 The Banker (Financial Times Group)

Best Bank for Technology Innovation 2014 and 2013 and Best Bank in Spain 2013 and 2012 Euromoney

The best Spanish bank in internet banking Global Finance

The most Innovative business model in Private Banking Private Banker International

Certification AENOR 22222 for Affluent Banking business model AENOR (June 2014)

Europe's best bank in mobile banking Forrester

Innovation in Green IT The Banker (Financial Times Group)

The most innovative bank of the year 2011 & 2013; Innovative Spirit and Product & Service Innovation Award 2014 Bai-Finacle (BAI & Infosys)

Leader in customer loyalty, satisfaction and recommendations Businesses between 1 to 100 € million in Spain (2012 - bi-annual publication )

Quality

2014


http://www.thebanker.com/Awards/Innovation-in-Technology-Awards/Innovation-in-Technology-and-Transaction-Banking-Awards-2013

Responsible management and transparency:

• Inclusion of CaixaBank in the main worldwide sustainability indices (DJSI 2014, FTSE4 Good 2014, ASPI 2014)

• Signatory of the Principles of Ecuador: consideration of social and environmental impacts in financing large projects

• Inclusion in the worldwide indices of excellence in climate change management (CDLI 2014 and CPLI2014)

• MicroBank, first European bank by volume of microcredit loans granted.

• Extension to clients of social programs of “la Caixa”. Eg.: labour inclusion (“Incorpora” programme), Business Alliance for Children Vaccination

• Chairing the Spanish Network of the Global Agreement of the United Nations

CORPORATE VALUES HIGHLIGTS

Quality

Trust

Social commitment

Social responsibility

Promoting entrepreneurship and

financial inclusion

Transparency and good governance

Social commitment: corporate volunteering & spreading awareness

of welfare projects

Incorporating social and environmental

criteria in risk analysis, products and services

Corporate responsibility aims


The leading force in Spanish retail banking

(1) Among those of 18 years of age or older, % of respondents who say they do business with a certain bank. (2) Figures include the impact of BBSAU pro forma (3) To other resident sectors (4) Firms with turnover €1-6M. Initial data for 2006 (bi-annual survey) (5) Firms with turnover €6-100M. Initial data for 2006 (bi-annual survey) (6) Includes PPI + PPA pension plans Source: FRS Inmark, Social Security, BoS, INVERCO and ICEA, latest available data

Market leadership

Leading commercial franchise Customer penetration by entity 1,2

28%

18% 14% 12%

7% 4%

CABK Peer 1 Peer 2 Peer 3 Peer 4 Peer 5

24% as primary bank

Strong market shares across the board Market share by key products

17.8%

17.6%

23.2%

9.1%

14.1%

5.6%

11.2%

7.3%

12.7%

10.9%

10.8%

11.0%

12.5%

14.4%

9.1%

9.8%

15.6%

20.4%

POS terminal Turnover

Credit cards turnover

Health insurance

Life insurance

Saving Insurance

Mutual Funds

Pension Plans

Factoring & confirming

SME (main bank)

Corporate (main bank)

Consumer loans

Mortgages

Pensions deposits

Payroll deposits

Loans

Deposits

CABK as primary bank

Customer penetration 28.2%

24.1%

14.9%

23.1%

15.7%

18.3%

21.3%

21.4%

14.5%

15,2%

15.3%

19.4%

16.9%

24.9%

2007 market share Growth 07-14

1st

Rank

Mass retail banking

Client AuM

Payment systems

… and growing

Insurance

Individuals

Corporate

20.0%

15.9%

18.4%

1st

2nd

1st

3rd

1st

3rd

1st

2nd

1st

1st

1st

1st

1, 2

2

2

3

6

5

1st

1st

1st

1st

1st

18

27.9%

4


3

19

2014/15 2010 2012/13 2008 2011/12

BBSAU

Announcement Jan 2008 Jun 2010 Sep 2011 Mar 2012 Nov 2012 Sep 2014

Full IT integration Dec 2008 Dec 2010 Feb 2012 Apr 2013 Jul 2013 Expected 2Q15

Private Banking Spain

8 months 12 months1 5 months 6 months 12 months

Proven integration track record

(1) It involved completing 4 sequential integrations.

Growth and market leadership has been reinforced by acquisitions

Acquisitions

1



Balance Sheet [Strength]

20

Best-in-class balance sheet metrics

Figures as of December 31st 2014

BIS-III Core Capital (fully loaded) at 12.3%

BIS-III Core Capital (phase-in) at 13.1%

Total credit provisions: €11.1 bn

NPL Coverage ratio: 55%

Coverage of foreclosed assets: 55%

€56.7 bn of available liquidity

Sound loan-to-deposit ratio: 104%

Robust capital base Reinforced asset quality Strong liquidity position

Maintaining balance sheet strength is a key priority for management

Balance sheet strength


Asset quality

Rapid reduction in NPLs and NPL ratio continues in 4Q

Continuing decline in NPLs In Billion Euros

NPL ratio down 4 quarters in a row In %

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

20.1

25.7 25.9 22.5

25.4

BdV 2.0

24.0

Refinanced loans

-€5.3 bn yoy

3.3

-€1.3 bn qoq

22.6

9.4%

11.2% 11.4% 11.7%

10.5%

11.4% 10.8%

9.7%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

• Deleveraging: (lower denominator)

• Net NPL formation:

+45 bps

-242 bps

YTD change:

-197 bps Strong coverage at 55% €11.1 bn credit provisions

21.4

Six quarters of falling NPLs (-21% yoy, -6% qoq) Provisions impacted by foreclosures and write-offs

Pace of decline accelerates in 4Q (-79 bps qoq) supported by clean-up and reduced net NPL formation


NPL ratios continue to decline across all segments

(1) NPL ratios include contingent liabilities (2) Note that this ratio differs slightly from the segment reporting NPL ratio (6.2%) due to different segmentation criteria

QoQ changes in NPLs & NPL ratios by segment

23

Asset quality by segment

Intensive clean-up of RE developer loan book: The largest contributor to the decline in NPLs

Intensive clean-up throughout the year reduces RE developer book by 30% YTD: YoY reduction exceeds target for the year (€14.1 bn vs €15 bn target)

Stabilising performing book

RE developer book backed by €4.4 bn of credit provisions with coverage of RE problematic loans at 53%


6.8%

5.5%

4.3%

8.6%

23.1%

10.9%

59.4%

1.8%

11.7%

Loans to individuals

Residential mortgages - home purchase

Other

Loans to businesses

Corporate and SMEs

Real Estate developers

Public sector

Total1

Ex- Real Estate developers2

31st Dec 13

NPLs qoq var. (€M)

(138)

(76)

(62)

(1,183)

(79)

(1,104)

6

(1,315)

(211)

NPL ratios

6.7%

5.3%

4.1%

8.4%

21.3%

11.5%

56.3%

1.0%

10.5%

30th Sep14

6.4%

5.3%

4.1%

8.3%

18.9%

10.6%

54.6%

0.9%

9.7%

31st Dec14

7.0 6.7 6.2 6.1 5.8

1.1 1.0 0.8 0.7 0.6

11.9 10.9

9.7 8.8 7.7

Dec'13 Mar'14 Jun'14 Sep'14 Dec'14

Performing

Substandard

NPL 14.1

20.0 18.6

16.7 15.6 Coverage

54% (€4.2 bn)

35% (€0.2 bn)

-€5.9 bn (-30%)

-9.9%

First reduction of the ratio of corporate (ex RE) NPLs since 2011

Additional year-end provisioning effort to facilitate future disposals

(1) The real estate holding company of CaixaBank, S.A.

Net foreclosed assets portfolio down 3.4% qoq but expected to increase in 2015

Coverage increased to 55%

Building Center1 repossessed RE assets As of December 2014. Book Value in Million Euros (net of provisions)

% coverage

54% 55% 53% 53% 53%

RE assets from loans to construction and RE development

Finished buildings

Buildings under construction

Land

RE assets from mortgage loans to households

Other repossessed assets

Total RE assets for sale (net)

Rental portfolio (net)

4,922

2,519

353

2,050

1,081

716

6,719

2,771

Net amount Coverage

AFS RE assets Rental portfolio

57%

47%

61%

65%

46%

50%

55%

6,169 6,412 6,747 6,956 6,719

1,850 2,064 2,285 2,479 2,771


24

87% occupancy ratio


Foreclosed assets

Pace of commercial activity intensifies further in 4Q

Significant increase in both sales and rentals: sales +58%; rentals + 69% (qoq, in value)

Real estate prices stabilising but sales still generating c.15% losses

Balanced disposal strategy to sustain average quality and age of the repossessed assets portfolio

Building Center commercial activity

In Million Euros

Building Center commercial activity

In number of units

500

1.074 1,380 495

1,106

1,132

2012 2013 2014

Sales1

Rentals

2,512

2,180

+15%

3,646

8,721

13,794 3,320

9,665

9,611

2012 2013 2014

Sales1

Rentals

23,405

6,966

+27%

995

18,386

25

(1) Revenue of RE sales by Building Center


Disposals

ECB funding

Total liquidity

Slight 4Q increase in LtD as net loan growth exceeds increase in retail funds

Full repayment of LTRO funding during 2014

TLTRO: €3 bn in September and €3.9 bn in December

Balance-sheet liquidity covers wholesale funding maturities for the next 4 years

LCR ratio comfortably exceeds 100% (requirement >60% from Oct’15)

Excess liquidity puts us in privileged position to take advantage of lending opportunities

Keeping an excellent liquidity position despite early repayment of LTRO

In Billion Euros

31.6 30.7

29.2 25.9

Dec'13 Sep'14 Dec'14

Unused ECB discount facility

Balance sheet liquidity2

60.8 56.7

Dec'13 Sep'14 Dec'14

-56%

110% 105% 102% 104%


102%

LTD ratio evolution1

In Billion Euros

6.9 6.6

15.5

LTRO TLTRO

+4.1%

26.4

34.8

61.2

26

(1) Defined as: gross loans (€197,185 M) net of loan provisions (€10,587 M) (total loan provisions excluding those corresponding to contingent guarantees) and excluding pass-through funding from multilateral agencies (€6,662 M) / retail funds (deposits, retail issuances) (€172,551 M)

(2) Banking liquidity: includes cash, interbank deposits, accounts at central banks and unencumbered sovereign bonds

Liquidity


(1) Capital figures include the FY14 interim attributable net profit (2) The January 2014 figure has been revised to take into account current Basel III phase-in arrangements.

Comfortable solvency metrics facilitate gradual return to cash dividends

CET1 ratio1 evolution yoy - In %

RWAs €152.5 bn

€18.0 bn

€152.5 bn

13.1%

-27 bps DGF

Jan 14

12.1%2

CET1 €18.5 bn

11.8%

+128 bps

Capital generation

€18.3 bn

€139.5 bn

Jan 14 (restated)

Dec 14

RWAs €151.5 bn

€17.1 bn

€151.4 bn

12.3%

-38 bps DGF

Jan 14

11.7%

CET1 €17.7 bn

11.3%

+94 bps

Capital generation

€16.9 bn

€137.7 bn

Jan 14 (restated)

Dec 14

Fully loaded Phase in

Leverage ratio

Total Capital 16.2%

Phase-in

5.8%

Fully Loaded

15.5%

5.4%

CET1 13.1% 12.3%

Strong FL CET1 at 12.3% and 11.6% pro forma Barclays Spain:

-49 bps qoq, attributable mainly to change in accounting treatment of DGF levies (IFRIC 21)

4Q impacted by RWA decrease as tangible book value of VidaCaixa reduced to €2.0 bn

Capital position1 as of December 31st


Solvency

(1) Source: EBA and ECB. Results for CaixaBank implicit in those officially published by the EBA and the ECB at “la Caixa” group level. Differences between CaixaBank and “la Caixa” group results stem from impact of non-financial assets and minority interests in CABK at “la Caixa” level.

(2) Comparison group: top 10 by market capitalisation as of October 24th 2014 at closing. (3) Including the conversion of mandatory convertible bonds (€1.9 bn) during 1H14, the capital surplus over the minimum threshold reaches ~€9.5 Bn.

ECB comprehensive assessment confirms best-in-class solvency

-4 bps +180 bps -230 bps

1,1

2013 Pre-AQR

2013 Post AQR

2016 Baseline

2016 Adverse

2016 Adverse

post MCB

10.9 %

+110 bps

The most solvent1 amongst the top 10 Euro Area banks2

5.5%

6.8%

8.1%

8.1%

8.3%

8.7%

8.8%

8.9%

8.9%

9.0%

10.3%

Threshold

UniCredit

BNP Paribas

Société …

Intesa Sanpaolo

ING

Crédit Agricole

Deutsche Bank

Santander

BBVA

CaixaBank

BIS III Phase-in CET1 as % of RWA in the adverse scenario

Results breakdown BIS III Phase-in CET1 as % of RWA

3

AQR:

• Minimal impact (-4bps) • Lower impact than peers2

• Overall excess provisioning relative to AQR standard

11.4%

ST Adverse Scenario:

• CABK outperforms Euro Area and Spanish peers2

• Capital surplus of €9.5bn with MCB converted in 20143 €8bn

surplus3

10.8 %

12.6 %

10.3%

ECB Comprehensive Assessment


Investment [Diversification]

29

In €M

Stake market value 1

Consolidated carrying amount 4

Of which Goodwill 4

BEA 1,455 1,925 568

Boursorama5 218 178 66

BPI 659 939

Erste 820 870

Inbursa 1,280 868 299

Growth-driven strategy, risk diversification and customer support

Rep offices & branches to serve clients Investments in growing markets

9.0%

44.1%

20.5%

9.9%

18.7%

Representative offices International branches Banking stakes1

16 Representative Offices

Paris, Milano, Frankfurt, London2, Beijing, Shanghai, Dubai, New Delhi, Istanbul, Singapore, El Cairo, Santiago de Chile, Bogotá

Forthcoming2: NY, Sao Paulo, Algiers

4 International Branches

Warsaw (June 2007) Casablanca (July 2009) Tangier (November 2013)

London2 (expected 2H2015)

(1) As of December 31st 2014. (2) NY expected in 1T15, Sao Paulo and Algiers, in the process of obtaining pertaining licenses; London, pending regulatory approval. (3) As of December 2014

(4) Consolidated carrying amount of equity of the different entities, attributable to the CaixaBank Group, net of write-downs. Goodwill, net of write-downs. (5) Not listed. Market value based on the price of the public offer launched by Société Générale as of May 14.

Loan Portfolio: €184 M 3

Internationalisation

International banking stakes: €4.4bn market value1

Investing in local winners

(Strategic plan 2007-2011)

Long term and at fair value

Influential positions

Building strategic alliances

Sharing best practices

JVs and project development

+

Financial positions

Controlling Acquisitions

- Control/Synergies/Risk

+ Control/Synergies/Risk

Diversification Performance Strategy At a glance Competitive stance Balance Sheet Appendix 30

Banco BPI

31

BPI: key figures

2014

Assets

Net loans

Client funds

Shareholder funds

FL CET1 ratio1

LtD ratio2

Rec. cost-to-income ratio3

Cost of risk

€42.6 bn

€25.3 bn

€35.4 bn

€2.1 bn

8.6%

84%

64%

0.70%

Details of proposed transaction

Transaction highlights: An attractive proposition for both BPI and CABK shareholders

Strategically coherent transaction: in-depth knowledge of BPI and Portugal developed since 1995

Aligning CABK’s economic and political interest in BPI

Builds shareholder value: Recurrent EPS accretive from Year 1 with ROIC >10% by 20174 and improving thereon

Estimated fully-loaded CET1 impact of 110 bps5

Significant synergy potential of €130 M per annum expected by 2017, with an NPV of €650 M

Voluntary Tender Offer for Banco BPI, S.A.

(1) Proforma ratios under the special scheme applicable to deferred tax assets and the change in risk weightings for the indirect exposure to the Angolan State and to the National Bank of Angola in Kwanza (2) “Loans / customer deposits”, calculated in accordance with Bank of Portugal Instruction 23/2011 (3) Excluding non-recurrent impacts in costs and revenues (4) Based on Bloomberg broker consensus net income forecasts and a 75% uptake (5) 2014 Pro-forma Barclays’ retail business in Spain (c.€147bn RWAs) and assuming 75% shareholding by CABK post completion of the transaction. The range for 51%-100% is 80-140 bps, respectively

3

1 VTO for all shares in BPI not yet owned by CABK, representing 55.9% or 814.5 million of outstanding BPI shares

2 Closing estimated for 2Q 2015: conditional on >50% shareholding and removal of 20% voting cap (requiring broad shareholder support)

3 VTO price of € 1.329 per share payable in cash


Solid, liquid assets providing revenue and capital diversification

Industrial stakes

5.3%1

One of the largest telecommunications companies in the world in terms of market cap and number of customers. Company market value1: €55.5 bn

11.9%1,2

Integrated global energy company , carrying out upstream and downstream activities. Company market value1: €20.6 bn

(1) As of December 31st 2014. (2) CaixaBank’s stake in Repsol could be reduced by a maximum of 2.5% after the exchange of the €594.3 M mandatorily exchangeable bonds maturing in Nov’16. (3) Market value of CaixaBank stakes as of December 31st 2014.

Diversification

Value

Profitability

Financial flexibility

Income diversification: sound revenue base

Geographical diversification: ~65% revenues generated abroad

Very liquid investments

Limited regulatory capital consumption

Potential capital buffer

High dividend yield

Attractive return

Tax-efficient (≥ 5%)

International leaders, defensive sectors

Solid fundamentals

Strong financials

€5.4bn3


Financial [Performance]

33

Client funds breakdown In Billion Euros

I. Funds on balance sheet

Demand deposits

Time deposits

Retail debt securities

Subordinated liabilities

Insurance

Other funds

II. Off-balance sheet funds

Mutual funds1

Pension plans

Other managed resources2

Total client funds

207.3

93.6

72.7

2.9

3.3

32.3

2.5

64.4

37.5

19.9

7.0

271.7

31st Dec.

2.5%

16.3%

(10.5%)

(4.6%)

(6.9%)

4.7%

(20.3%)

15.2%

34.1%

18.7%

(37.4%)

5.2%

yoy

(1) This category includes SICAVs and managed portfolios besides mutual funds. (2) Includes regional government debt and subordinated debt issued by “la Caixa” Banking Foundation

Client funds grow 5.2% yoy as retail network continues delivering market share gains

Migration to off-balance sheet products to continue during 2015

Demand deposits increase more than proportionately

Asset allocation to off-balance sheet products continues

0.8%

5.1%

(4.4%)

(1.9%)

(0.4%)

1.5%

4.5%

4.5%

6.0%

7.0%

(8.5%)

1.7%

qoq

34

Profitable shift in client saving mix

4Q Client funds change qoq, in Billion euros

Client funds growth qoq

+€4.5 bn (+1.7%)

-3.3

-0.6

+1.8 +2.1

+4.5

Time deposits

Other Insurance & pension

plans

Mutual funds

Demand deposits

Activity & Results FY14: Funds


Loan book breakdown In Billion Euros, gross

I. Loans to individuals

Residential mortgages – home purchases1

Other

II. Loans to businesses

Corporates and SMEs

Real Estate developers

Criteria CaixaHolding and “la Caixa” BF

Loans to individuals & businesses

III. Public sector

Total loans

Performing loans (ex RE)

111.3

80.4

30.9

72.3

56.8

14.1

1.4

183.6

13.6

197.2

171.1

31st Dec.

(5.4%)

(4.7%)

(7.3%)

(8.9%)

(3.2%)

(29.6%)

114.9%

(6.8%)

33.4%

(4.8%)

(1.7%)

yoy

Exceptionally good 4Q aided by seasonality and one-offs

Performing loan book (ex RE) up +2.7% qoq (-1.7% yoy)

Change in credit trends driven by growth in both corporate & SME loan book (+7.8% qoq)

Increase in corporate and public sector loan book impacted by bulky YE transactions

TLTRO funding & increased state support to regional and local governments allow for increased volumes but lower spreads

Q4 provides greater conviction for stable performing loan book in 2015

Performing loan book ex-RE now stabilising

(1.4%)

(1.3%)

(1.7%)

3.7%

7.8%

(9.9%)

2.3%

0.6%

14.6%

1.4%

2.7%

qoq

(1) Circa €3bn have been reclassified from the “Residential mortgages – home purchases” category to “Other” as these correspond to additional withdrawals from mortgage loan contracts for other financing needs (“hipoteca abierta” contract). Historical series have been restated accordingly.

35

Activity & Results FY14: Loan-book


New lending picks up on improved macro backdrop

Improving underlying trends in credit on the back of better loan demand

CaixaNegocios strengthens competitive stance with SMEs and professionals

Specific 2H initiative (“Plan de Estímulo a la Inversión”) centred around facilitating loan demand from our clients

257,700 new accounts

31.3% Client penetration among the self-employed3

Source: FRS Inmark

+141 bps FY14

(1) New lending to Corporates and SMEs includes: new loan and syndicated loan production, variation in working capital facilities and drawdowns from revolving credit lines (2) Large corporate loan book impacted by bulky year-end transactions (3) Commercial strategy launched in March 2014 targeting retail shops, micro SMEs and self-employed individuals.

228 221 215 207 201 200 194 1972

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Signs that deleveraging is leveling off Gross Loans and advances to customers, in Billion Euros

+26% FY14 vs FY13

+54% 4Q14 vs 4Q13

Residential Mortgages

Consumer lending

Corporates and SMEs

+42%

+25%

+65%

4Q14 vs 4Q13 FY14 vs FY13

New lending1 growth Growth of gross loan book amounts over the period

+30%

+19%

+48%

+1.4%

-4.8% Enhances Customer centricity

Leading adopter of banking mobility solutions


Activity & Results FY14: Loan-book

Consolidated income statement

(1) Includes dividends and income from associates (2) 2013 does not include: -€267 M related to the change in the accounting treatment of DGF levies (IFRIC 21); -€839 M of expenses associated with the Group restructuring process (3) Agreement with unions reached in 2014 (4) 2014 includes losses from the sales and provisions for foreclosed assets. 2013 includes mainly BdV badwill and the capital gain from the partial disposal of Inbursa (5) Includes +€310 M from the reversal of a deferred tax liability associated with intra-group restructuring in 2007, which under the new corporate tax law becomes exempt. (6) Restatement of FY13 P&L to reflect new accounting of DGF contributions due to the adoption of IFRIC 21

Solid operating performance

o NII grows 2.1% qoq as improvement in funding costs continues

o Fees improve by 1.7% qoq due to asset management fees

o Delivery of synergies drives recurrent operating costs down -4.4% yoy / +1.0% qoq

Loan loss charges improve significantly on a path to normalisation

o Recurrent credit provisioning down 4.3% qoq

Exceptionals impact below the line

o €161 M additional real estate provisions

o Early retirement scheme provision of €195 M

o Reversal of deferred fiscal liability generates €310 M extraordinary income5

FY136 yoy (%) FY14 In Million Euros

qoq (%)

Net interest income

Net fees and commissions

Income from investments1

Gains on financial assets and exchange rate d.

Other operating income & exp.

Gross income

Recurring expenses

Recurring pre-impairment income2

Extraordinary expenses

Pre-impairment income

Impairment losses & others

Provision for early retirement scheme3

Gains/losses on disposal of assets and others4

Pre-tax income

Income tax5

Profit for the period

Minority interests

Profit attributable to the Group

5.1

3.7

10.2

(5.8)

(64.0)

9.0

(4.4)

18.0

100.5

(44.9)

(67.6)

101.1

96.3

2.1

1.7

(13.3)

(2.6)

(66.6)

3.4

1.0

6.5

6.5

20.6

(4.0)

(4.0)

4,155

1,825

491

640

(171)

6,940

(3,773)

3,167

3,167

(2,384)

(195)

(386)

202

418

620

620

3,955

1,760

446

679

(475)

6,365

(3,947)

2,685

(839)

1,579

(4,329)

1,770

(980)

1,288

308

(8)

316

Net income underpinned by solid operating performance

Activity & Results FY14: Income Statement


FY14 In Million Euros

Net interest income

Net fees and commissions

Income from investments

Gains on financial assets & other oper. inc. & exp.

Gross income

Recurring expenses

Pre-impairment income

Impairment losses & others

Provision for early retirement scheme

Gains/losses on disposal of assets and others

Pre-tax income

Income tax

Profit attributable to the Group

Average own funds /o.w. intangibles (€Bn)

ROTE (%)

Recurrent Cost-to-income

4,155

1,825

491

469

6,940

(3,773)

3,167

(2,384)

(195)

(386)

202

418

620

23.4 / 5.0

3.4%

54.4%

4,462

1,818

110

562

6,952

(3,665)

3,287

(1,387)

(195)

(16)

1,689

(148)

1,541

18.3

10.7%

52.7%

305

1

7

2

(166)

(156)

(105)

(261)

(997)

(388)

(1,646)

498

(1,148)

1.8

(63.1%)

305

(308)

379

73

144

(3)

141

18

159

68

227

3.2

10.2%

Banking & insurance (ex -Real Estate)

Real Estate activity1

Equity Investments

(1) The Real Estate activity includes primarily loans to RE developers and foreclosed real estate assets

Banking & insurance (ex RE) Strong core income improvement Cost-to-income ratio down to 52.7%

Real Estate activity Intensive clean up and provisioning

to facilitate future disposals Losses on RE sales still continuing

Investments Lower qoq income from associates TEF dividend registered in 4Q

Consolidated income statement, by business segment

Core business profitability reaches double-digit ROTE levels

Activity & Results FY14: Segment reporting


1.66 1.62 1.63 1.74 1.83 2.01 2.09 2.17

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

NII up ~5% yoy as cheaper funding offsets lower volumes NII, in Million Euros

992 967 977

1,019 993

1,022 1,059

1,081

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

+5.1%

+2.1%

Customer funds Loans and credits Customer spread

Customer spread up 8 bps qoq driven by continued reduction in time deposit costs

In %

NIM improvement fuelled by stable asset yields and funding cost improvements

In %

1.10 1.11 1.13 1.19 1.21 1.24 1.27 1.29

2.74 2.63 2.63 2.63 2.63 2.67 2.66 2.66

1.64 1.52 1.50 1.44 1.42 1.43 1.39 1.37

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Total liabilities NIM Total assets

FY13: 3,955 FY14: 4,155

3.21 3.07 3.00 3.02 3.04 3.08 3.00 3.00

1.55 1.45 1.37 1.28 1.21 1.07 0.91 0.83

NII guidance delivered with four quarters of sequential improvement

39

Activity & Results FY14: NII


Deposit re-pricing trends stabilising

258 244 235 218 204 184 163

152 180 173 137 129

110 77

58 48

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Front

Back

Time deposits and retail CP - Back vs. front book (bps)

Front book decline reflects large corporate deals

321 307 300 302 304 308 300 300

424 465 472

426 427 404 376

272

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Loan book yields - Back vs. front book (bps)

Front

Back

Front book loan yields affected by year-end wholesale banking transactions

TLTRO & better cost of market funding being gradually passed on to customers

Funding cost improvements continue outpacing new loan yield pressure

3.30 2.70 2.90 2.30 1.80 1.40 1.00

0.60

4.00 3.50 3.70 2.80

2.30 1.70 1.20 0.90

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Covered bonds Senior debt

Wholesale funding costs a leading indicator of asset yields Indicative yields of CaixaBank issuing wholesale securities with a 5 year maturity (%)

(*) Front book at 306 excluding large year-end transactions

306*

-190 bps

40

Activity & Results FY14: Spreads


446 444 430 440 454 476 444 451

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Net fees In Million Euros

+3.7%

Net fee breakdown In Million Euros

Banking services, sec. and other

Mutual funds

Insurance and pension plans

Net fees

yoy (%) FY14

1,266

244

315

1,825

(4.4)

38.4

21.2

3.7

qoq (%)

0.0

11.5

(1.7)

1.7

Fee growth of 3.7% yoy above guidance of c. 2-3%

4Q impacted by new regulatory caps on credit card interchange and pension plan fees (c. €100 M p.a.)

Mutual funds still growing strong in the quarter

FY14: 1,825 FY13: 1,760

+1.7%

Fees driven by secular shift in client saving trends

Introduction of caps: • Credit cards: September 2014 • Pension plans: October 2014

41

Activity & Results FY14: Fees


FY13 Total costs

4,786

Extraord.

1,019 949 940 988 1,000

Recurrent costs

-4.4%

2013 2014

940

FY13: 3,947 FY14: 3,773

944 940

839

Both costs and income contribute to efficiency gains

42

652

Original target

2014

625

Booked

+€27 M

Costs down on delivery of synergies and strong focus on expense control In Million Euros

Recurrent1 cost-to-income ratio Ratio in %, expenses and income in Million Euros

59.5% 57.7% 57.7%

57.0%

54.4%

(3,947) (3,868) (3,812) (3,764) (3,773)

6,632 6,705 6,606 6,600 6,940

4Q13 1Q14 2Q14 3Q14 4Q14

Expenses Income C/I Ratio

Cost saving targets Evolution of operating costs

Delivery of BCIV/BdV cost synergies reduces expenses by -4.4% yoy

Operating costs flat in 4Q excluding €10 M one-off related to Barclays Spain acquisition

Recurrent cost to income down from 60% to 54% yoy (-2.6 pps qoq)

€195 M provision made in 4Q for early retirements to keep a stable cost base (stand-alone) in 2015

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

(1) Income and expense for the last 12 months are used in the analysis of quarter-on-quarter changes in the cost to income ratio. 2013 does not include: -€267 M related to the change in the accounting treatment of DGF levies (IFRIC 21); -€839 M of expenses associated with the Group restructuring process

Activity & Results FY14: Operating costs


Core operating income to underpin future bottom line growth

Core Operating Income: Clear upward trend

NII + Fees - Recurring Expenses (In Million Euros)

43

Recovery of NII: +5.1% yoy

Driven by NIM improvement on normalisation of funding costs

Improvement in net fees: +3.7% yoy

Driven by a shift in client savings mix to life insurance and assets under management

Recurrent costs down: -4.4% yoy Strict cost discipline keeping costs flat

Activity & Results FY14: Core operating income

Solid evolution of Core Operating Income underpinned by:


419 411 419

519 507 554 563 583

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

+25%

+3.6%

FY13: 1,768 FY14: 2,207

Potential for improvement in the cost of wholesale funding as issues mature

Total outstanding: €38 bn

Average cost as of 4Q14: 224 bps

ALCO fixed income portfolio evolution1

In Billion Euros

Wholesale funding maturities schedule

In Billion Euros

€6.7 bn

2015

€7.3 bn

2016

€4.7 bn

2017

Wholesale maturities as of December 31st

27.1 29.0 32.8 31.8 28.7

13.5 12.8 11.2 10.5 7.8


Spanish sovereign bonds Other

Yield 3.3% 3.4% 3.4% 3.4% 3.4%

Average life 2.1y 2.2y 2.6y 2.5y 3.1y

40.6 41.8 44.0

36.5

(1) Banking book fixed-income securities portfolio, excluding trading book assets, as of the end of the quarter. As part of its ALCO management CaixaBank holds a portfolio of fixed income investments including, among others, bonds guaranteed by the Kingdom of Spain (such as ICO,FADE,FROB and others); ESM bonds; as well as Spanish covered bonds

42.3

Lower fixed income contribution partially offset by wholesale funding maturities

2.74% 2.57% 1.54%

Cost (Total yield)

44

Activity & Results FY14: ALCO


883

504

633 744

611 610

441 422

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Recurrent credit provisioning down 26% yoy

2.98%

2.30% 1.95% 1.86%

1.15% 1.17% 1.08% 1,00%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

1.00%

Downward trend in Cost of Risk1 maintained in 4Q14 In Million Euros

2013 average: ~700

€2,764 M

2014 average: ~520

Gradual normalisation in the level of charges with CoR down 86 bps yoy

Decline in quarterly charges supported by better macro and high NPL coverage

(1) CoR is the ratio of YTD loan loss provisions (annualised) divided by the gross amount of loans, advances and contingent liabilities to customers, as of the end of the quarter

€2,084 M

Continued reduction in recurrent loan loss provisioning

-26%


Activity & Results FY14: Provisioning

Target: ~5% NII growth NII, in Million Euros

Target: ~2-3% net fee income growth Net fee income, in Million Euros

Target: ~55% Cost-to-income ratio

Recurring cost-to-income ratio, in %

Target: Gradual cost of risk normalisation Cost of risk, in basis points

3,955 4,155

FY2013 FY2014

1,320 1,825

FY2013 FY2014

1,760

+3.7%

59.5% 54.4%

FY2013 FY2014

FY14: FY13:

186

100

60

Dec 13 Dec 14 Normalised level

-86 bps

2014: Delivered on our guidance

+5.1%

-5 pp

Guidance provided during 1Q14

vs. 5% target vs. 2-3% target

vs. ~(5 pp) target

46

Activity & Results FY14: Delivering on guidance


NII

Recurring Expenses

Performing CaixaBank loan book (ex-RE)

2015 Guidance* Main levers

High single-digit growth

~ Flat (stand-alone)

NPL ratio: <8% by YE CoR: ~80 bps by YE €2.7bn real estate sales & rentals

2015: Solid foundations for future profit growth

Asset quality

Stable

(*) Year-end guidance incorporating the impact of the BBSAU acquisition (closing in January 2015),except for recurring expenses and loan book trends

Reduced funding costs and stabilising loan book Growth in off-balance sheet products Barclays Spain contribution

Strong focus on operational efficiency Early retirements (booked in 4Q14)

Better macro outlook Intensive clean-up of RE-exposure Take losses on sales to accelerate disposals

Better macro outlook Growth in Corporate/SME book and consumer

lending to offset RE deleveraging

Fees

47

Activity & Results FY14: 2015 guidance


Stock price evolution reflects improved macro dynamics and robust financials

Stock price evolution

48

365,000 360,000

350,000 350,000 320,000

350,000

750,796

735,465

O-07 D-07 D-08 D-09 D-10 D-11 D-12 D-13

CaixaBank Ibex35 Spanish banks1 Domestic banks2

PER Dec-16

P/BV Beta Volatility 90 days

10.67 0.94 1.15 35.19%

Share price evolution

Stock’s main indicators3

(1) Index of peers’ share prices (Bankia, Bankinter, BBVA, Popular, Sabadell and Santander). Own elaboration. (2) Index of peers’ share prices (Bankia, Bankinter, Popular and Sabadell). Own elaboration. (3) Source: Bloomberg as of January 23rd 2015. (4) Institutional investors are well diversified geographically: 33% US; 26% UK/Ireland; 22% Spain; 14% Rest of Europe; 5% Rest of the World.

Number of shareholders

Criteria CaixaHolding and board members (3,339M shares) 66%

Free float (1,689M shares) 34%

51% Institutional4 869 M Shares

49% Retail 820 M Shares

Shareholder base by group In % of share capital as of YE13


80

100

120

140

160

180

200

220

240

31/01/2013 25/06/2013 17/11/2013 11/04/2014 03/09/2014 26/01/201531/12/2014

Strategy [update]

49

1

2

3

4

5

Strengthen leadership in retail banking

Diversify operations towards corporate banking

Balance out geographical presence

Develop international strategy

Maintain financial strength

• 15% market share in business volume

• 35% of loan book (excluding Real Estate developers) geared towards corporate banking (from 29% in 2010)

• Accelerate growth outside Catalonia and Balearic Islands (to 65% share in business volume, up from 55% in 2010)

• Strengthen existing alliances • Increase business abroad with existing and new clients

• Pre-emptive management of solvency, liquidity and risk. • Core capital B3 8%-9%

Key strategic initiatives 2011-2014

6 Improve profitability • Targeted ROE in mid-teens in the medium term

7 Increase efficiency and structural flexibility • Structural optimisation • Leverage new technologies

8

9

Manage talent • Appraise performance • Enhance professional growth opportunities

Communicate • Internal communication • External communication to all stakeholders

TBD

TBD


Well positioned to capitalize on an improving cycle

Strategic Plan 2011-14

Spanish 10y bond yield premium over Bunds

& domestic bank stock index (January 2012 = 100)

Source: Bloomberg

Left hand side : Spanish 10-year government bond yield premium over German government debt (Bunds)

The Spanish economy and banking sector are in a recovery mode

6 quarters of sustained growth (since 3Q2013)

Major restructuring of the banking system

GDP up 0.7% in 4Q

Net employment creation (+417,000 Jan14-Dec14)

Housing market stabilisation (prices bottoming out, sales picking up)

Domestic demand improvement (est. private cons. +3.1% yoy 4Q14)

Resilient export sector (est. +6.1% yoy 4Q2014)

LtD close to sustainable levels (around 119%)

Inflection point in asset quality (NPLs down 10.4% ytd)

Reduced capacity (-30% in branches, -25% in employees since 2007)

Enhanced solvency (11.6% CET1 in June’14)

Significant drop in financing costs (10y govt. debt now yields 1.5%) Right hand side: Spanish domestic bank stocks index (Inverted scale)

Macro & Industry backdrop

0,000

20,000

40,000

60,000

80,000

100,000

120,000

140,000 0

100

200

300

400

500

600

700

J-1

2

A-1

2

J-1

2

O-1

2

J-1

3

A-1

3

J-1

3

O-1

3

J-1

4

A-1

4

J-1

4

O-1

4

J-1

5

635 bps Yield: 7.6%

(24th July 2012)

122 bps Yield: 1.5%

(30 Jan 2015)


600

1000

1400

1800

2200

Dec-04 Dec-06 Dec-08 Dec-10 Dec-12 Dec-14 Dec-16

-5

-3

-1

1

3

5

04 05 06 07 08 09 10 11 12 13 14 15e 16e 17e 18e

Headwinds on the profitability of the Spanish banking sector

Modest economic growth ahead

Average 1999-2008: 3.5%

Average ’14-’18: 1.7%

Prolonged low rate environment

Stabilisation of private sector credit

Pressure on profitability

CRD IV/CRR and BRRD: higher capital and liquidity needs

Deposit and Resolution Fund levies

Increased consumer protection

EU mortgage Directive EU Directive on payment services EU investments regulation (MiFID II)

Necessary but burdensome regulation

forecast

Stock of bank credit to private domestic residents, in €Bn

Source: Bank of Spain and “la Caixa” Research

Source: “la Caixa” Research

Spanish annual GDP growth, in %

Source: IMF

Spanish banking sector NIM and Euribor 12M, in %

Macro & Industry backdrop

52

forecast


forecast

0,0%

0,4%

0,8%

1,2%

1,6%

2,0%

0%

1%

2%

3%

4%

5%

2001 2003 2005 2007 2009 2011 2013 2015

NIM (right hand side) Euribor 12M (left hand side)

Levers to bolster profitability

Cyclical & structural levers

1

2

3

4

Repricing of deposit back book

CoR and balance sheet normalisation

Scale and acquisitions to drive cost-efficiency

Wide-range offering through a single integrated platform

5 Technology-led innovation and business transformation

+ S

trat

egi

c +

Tac

tica

l


Reduced retail funding costs and loan-loss charges support profitability in the current backdrop

Tactical levers


(1) CoR is the ratio of YTD loan loss provisions (annualised) divided by the gross amount of loans, advances and contingent liabilities to customers, as of the end of the quarter

Deposit re-pricing trends stabilising

258 244 235 218 204 184 163

152 180 173 137 129

110 77

58 48

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Front

Back

Time deposits and retail CP - Back vs. front book (bps)

3.30 2.70 2.90 2.30 1.80 1.40 1.00

0.60

4.00 3.50 3.70 2.80

2.30 1.70 1.20 0.90

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Covered bonds Senior debt

Wholesale funding costs a leading indicator of asset yields

-190 bps

2.98%

2.30% 1.95% 1.86%

1.15% 1.17% 1.08% 1,00%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

1.00%

Downward trend in Cost of Risk1 maintained in 4Q14

Rightsizing and acquisitions fuel cost efficiency gains

(1) Includes headcount and branches of Morgan Stanley Private Banking, Caixa Girona, Bankpime, Banca Cívica and Banco de Valencia when they were acquired. (2) Source: own estimates as of September 2014 for CaixaBank and as of the acquisition date for the acquired entities.

26,063

12,486

Dec'07 pro forma

Jun'14 Dec'14

≈31,200 38,549 -6,975

-19%

Employee departures since 2007 1

Number of branch closures since 20071 Significant cost synergies from acquisitions In Million Euros

423

652 680

2013

BCIV+BdV

31,574 -364

Net departures

Net departures

83

BBSAU

2015e

BCIV+BdV

2014e

BBSAU

2016e

680

BCIV+BdV BCIV+BdV

Acquisitions

150

Size is key to achieve economies of scale HQ staff as % of total employees2

6%

17% 20%

30%

CaixaBank Acquisition 1 Acquisition 2 Acquisition 3

Cost efficiency: Rightsizing & Acquisitions


5,218

2,099

Dec'07 pro forma

Dec'14

5,267 7,317

-28%

172 openings

-2,484 closings

Acquisitions

Acquisition of Barclays Bank SAU improves competitive position in key segments and regions

BBSAU

56

Client AuM account for 33% of retail funds

BBSAU: key figures 1

June 2014

Assets

Net loans

Deposits 2

AuM 3

Shareholder funds

Branches 1

Customers 4

Employees

€21.6 bn

€18.4 bn

€9.9 bn

€4.9 bn

€1.7 bn

271

≈555,000

2,446

6%

9%

5%

8%

7%

5%

4%

7%

% of Combined

≈ 4,100 customers

2.6% market share (source: DBK)

Private banking

≈ 178,200 customers

1.7% market share (source: DBK)

An affluent segment oriented bank with c. 555,000 customers

Transaction highlights

Acquisition for cash consideration of €800 M; closing: January 2015

Builds shareholder value: EPS accretive from Year 1 with ROIC already above 10% by 2016

Limited capital impact: FL B3 75 bps

NPV of cost synergies: €0.8 bn, net of restructuring costs

(1) Not adjusted for the sale of 9 branches to Caja Rural Castilla La Mancha in 2014 (~€350 M in loans and €150 M in deposits to be transferred) (2) Includes repos (3) Data for BBSAU includes average mutual funds and SICAVs as of June 2014 (4) Includes retail banking clients only

BBSAU


Affluent banking


Advisory capabilities become key in a low rate environment

FY14 (€ Bn)

% Change YTD

Volume

Savings insurance

32.3 +5%

Pension plans

19.9 +19%

Mutual funds

37.5 +34%

TOTAL 89.7 +19%

Strong and growing insurance and asset management capabilities

Outperforming peers over recent years Market shares

Insurance and AM capabilities

33% of retail funds


Source: Inverco and ICEA

Key competitive advantage:

100% Ownership of the value

chain

Better economics Integrated management

of client savings No conflicting views with

partners

16.4%

17.3% 18.1%

19.7% 20.6%

2010 2011 2012 2013 Dec 14

1st +86 bps Savings insurance

and pension plans

+120 bps 2nd Mutual funds

10.6%

12.2%

14.0% 14.1% 15.3%

2010 2011 2012 2013 Dec 14

Migration of customer funds to off-balance sheet products underscores cross-selling capabilities

The insurance and pension plan business is a perfect complement to the banking business

58

Insurance and pension plans business

+10%

47.6 48.6

49.5 50.4

52.2


Premiums and contributions4

Sustained increase in Investments & AuMs In €Bn

Assets under Management

Customers1

Points of sale. The widest distribution network2

Specialised staff3

Segments, providing diversified offering: Life, Pensions, Health, Autos, Households

Leader in Spanish complementary pension market

€52 Bn

9 M

5,416

3,902

5

#1

A top insurance group

(1) Circa 4 Million customers in life insurance + circa 5 Million customers in non-life. (2) 5,251 CaixaBank branches + 165 SegurCaixa Adeslas delegations and offices. (3) VidaCaixa: 202 specialized agents in SMEs and self-employees + 5 private pensions advisors; SegurCaixa Adeslas: 1,492 own agents, 820 external agents and 1,383 brokers. (4) Data as of December 31th 2014

Life/Savings 65%

Life/Risk 9%

Pension plans contr. 26%


Steady focus and sustained investment in innovation

IT: key strategic lever

59

The innovation process Anticipating the needs of our customers in the “digital era”

Real-time

New ways of communication

New contents Security and transparency

Multi-channel approach

Customer requirements

Internal innovation

External innovation network

Technological transfer

The Wall: 15,000 business banking clients

Recibox: 800,000 users

Technology transfer from 3rd parties and development of new capacities

Collaboration with external entities to develop new ideas and/or diffuse them within the organisation

1. Multi-channel strategy and process automation

2. “Big Data” and advanced analytics Main areas of investment


Understanding customer behaviour through “Big Data” and advanced analytics

Transforming data into value

New Technological platform is being developed (with Oracle)

Investing in Big Data technologies and analytical capabilities offers clear potential to improve key business areas: Dynamic pricing, early detection of NPLs, recovery actions, 360º customer view, enhancing data extraction (efficiency)

Operational Systems (data bases)

Internal communication tools

External social networks

Structured

information

Unstructured

information

SmartBanking

Sentiment Analysis

Client Behaviour patterns

Online Marketing automation

Client profile enrichment

Artificial intelligence

Big Data


Strong balance sheet enables distribution of earnings to shareholders

61

Supporting current dividend policy

1. Repricing of time deposits

2. CoR and balance sheet normalisation

3. Scale and acquisitions to drive cost-

efficiency

4. Offering a wide range of financial

services

5. Boosting productivity & business

transformation via technology

Profitability levers

Robust solvency

Strong liquidity

Improved asset quality

12.3% CET1

15.5% Total capital

5.4% Leverage Ratio

€56.7 bn of available liquidity

NPLs down 21% YTD

High coverage (55%)

BIS 3 FL

Data as of 31st December 2014.


A gradual transition to cash dividends

Dividend policy

62

2014 Shareholder’s Remuneration

€ 0.04 Dividend / Share

Jun 2015

forecast


Mar 2015

forecast


Dec 2014


Sep 2014

Quarterly scheme

Attractive total remuneration

4.6%

Yield1

0.18 € / Share

Choice of payment programme DIVIDEND/SHARE

2015 - 2016 Progressive dividend distribution in cash

2014 Remuneration Policy


(1) As of December 31st 2014

[Appendix]

63

Moody’s Investors Service Baa3

BBB

BBB

P-3

A-2

F2

stable

positive

Long term Short term Outlook

A1

A

Rating of covered bond program

CaixaBank Credit Rating

stable

A (low) R-1 (low)

negative

(1) On May 29, 2014, Moody’s Investor Services confirmed the rating and the outlook. On February 25, 2014, Moody’s Investor Services upgraded the rating of CABK’s covered bond program from A3 to A1. (2) On November 27, 2014, Standard & Poor’s upgraded CaixaBank S.A.’s long term credit rating to BBB (stable outlook) from BBB- (positive outlook). Additionally, it revised the short term credit rating from A3 to A2. On October 14, 2014, Standard & Poor’s downgraded the rating of CABK’s covered bond program from AA- to A as a result of a methodology revision. (3) On July 1, 2014, Fitch affirmed the rating and revised the outlook from negative to positive. (4) On September 5, 2014, DBRS affirmed the rating and the outlook.

2

1

-

-


Ratings

3

4

http://www.dbrs.com/

USA 33%

UK/Ireland 26%

Institutional investors: Geographical distribution % of total shares owned by institutional investors, Dec-2013

Board of Directors composition Number of members

Proprietary directors 8

2 Executive

directors Independent directors 6

2 Cajas1

(1) Cajas include Fundación Caja Navarra, Fundación de Carácter Especial Monte San Fernando, Caja General de Ahorros de Canarias and Caja de Ahorros Municipal de Burgos

Total: 820 M shares

Transparency, independence and good governance are key priorities

Corporate Governance

Spain 22%

1 Other

external

65

Rest of Europe 14%

RoW 5%

Increased free Float: ~1100 M shares in 2013 and 2014 YTD due to “la Caixa” ABO, scrip and the conversion of MCB. The institutional investor base is well diversified.

“la Caixa” became a banking foundation in Jun-14 completing the formal reorganisation of the Group in Oct-14, after segregating liabilities and assets (including the stake in CABK) to Criteria CaixaHolding. No financial activity is undertaken at “la Caixa” Banking Foundation or Criteria.

The SSM/Bank of Spain will exercise its supervisory role on “la Caixa” Banking Foundation and Criteria on corporate governance issues, policies related to the management of the CaixaBank stake and intra group transactions, and as applicable to the banking foundation, on financial plan, risk management and reserve fund issues (Law 26/2013).

Criteria has an ample excess of net assets to address possible equity needs from CaixaBank that cannot be covered with other means and that, according to the Bank of Spain, could endanger its solvency obligations

Control and management of the bank is shared by the AGM, Board of Directors and Board committees: Audit and control; Executive; Appointments; Remuneration; Risks. The majority shareholder is not overrepresented in the board of directors

CABK’s relationship with other Group entities is immaterial and performed on an arm’s length basis. The Internal Relations Protocol of the Group governs intra-group business, services and information flow


Balance sheet

Financial statements


Cash and Central Banks 6.968 4.157

Trading portfolio 10.002 12.257

Available-for-sale financial assets 56.450 71.101

Loans 206.846 195.731

Deposits at credit institutions 5.891 4.377

Customer loans 198.079 188.762

Debt securities 2.876 2.592

Investment portfolio at maturity 17.831 9.608

Non-current assets held for sale 6.215 7.248

Investment portfolio 8.774 9.266

Property and equipment 5.518 6.404

Intangible assets 3.629 3.635

Other assets 18.087 19.216

Total assets 340.320 338.6230 0

Liabilities 316.374 313.391

Trading portfolio 7.891 11.975

Financial liabilities at amortized cost 263.201 247.539

Deposits by credit institutions and Central Banks 41.232 25.919

Customer deposits 175.162 180.200

Marketable debt securities 37.938 32.920

Subordinated debt securities 4.809 4.396

Other financial liabilities 4.060 4.104

Insurance liabilities 32.028 40.434

Provisions 4.321 4.371

Other liabilities 8.933 9.072

Equity 23.946 25.232

Shareholders' equity 23.259 23.373

Profit attributable to the Group 316 620

Equity adjustments by valuation 687 1.859

Total liabilities and equity 340.320 338.623

Dec. 31, 2014€ million

Dec. 31, 2013

P&L

Financial statements


€ million 2014 2013

Financial income 8.791 9.301 (5,5)

Financial expenses (4.636) (5.346) (13,3)

Net interest income 4.155 3.955 5,1

Dividends 185 107 73,4

Share of profit (loss) of entities accounted for using the equity method 306 339 (9,8)

Net fees and commissions 1.825 1.760 3,7

Gains on financial assets and exchange rate differences 640 679 (5,8)

Other operating income and expenses (171) (475) (64,0)

Gross income 6.940 6.365 9,0

Recurring expenses (3.773) (3.947) (4,4)

Extraordinary expenses (839)

Pre-impairment income 3.167 1.579 100,5

Recurring pre-impairment income 1 3.167 2.685 18,0

Impairment losses on financial assets and others (2.579) (4.329) (40,5)

Gains/(losses) on disposal of assets and others (386) 1.770

Pre-tax income 202 (980)

Income tax 418 1.288 (67,6)

Profit for the period 620 308 101,1

Minority interest (8)

Profit attributable to the Group 620 316 96,3

Change

%

January-December

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www.CaixaBank.com

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