la Caixa Group Institutional Presentation Financial year 2009

Transcription

1 la Caixa Group Institutional Presentation Financial year 2009

2 Disclaimer The purpose of this presentation is purely informative. In particular, regarding the data provided by third parties, neither Caja de Ahorros y Pensiones de Barcelona ( la Caixa ) as an entity, nor any of its administrators, directors or employees, is obliged, either explicitly or implicitly, to vouch for the fact 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, la Caixa may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in the 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. 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. Without prejudice to legal requirements, or to any limitations imposed by la Caixa 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 la Caixa and/or other respective proprietary title holders. Any failure to observe this restriction may constitute a legal infraction 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 la Caixa Group for 2009 has been prepared mainly on the basis of estimates. 2

3 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Financial performance: Growth, efficiency and profitability 6. Risk management 7. Financial Strengths 8. Welfare Projects 9. Closing Summary Page

4 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Financial performance: Growth, efficiency and profitability 6. Risk management 7. Financial Strengths 8. Welfare Projects 9. Closing Summary 4

5 1 (i) Executive Summary la Caixa Group A strong institution in Spain Leader in retail banking in Spain with great commercial activity Active management of the largest investment portfolio in Spain Strict risk management High financial strength Third ranking financial group in Spain in business and profits with more than 100 years of history. Market share around 10% and growing. Number one savings bank in Spain and Europe. Recurring Profit 2009: 1,710 million. Profit attributable to the Group 2009: 1,510 million. Total assets worth 271,873 million. Specialized management model to provide service to 10.5 million customers. Families and companies are the core of the business. Great commercial activity of the 27,505 employees: Business volume 415,825 million. Multi-channel management: leader in number of branches (5,326), ATMs (7,951) and on-line banking. Trust, excellence in service to customers, and efficient management. Under Criteria CaixaCorp s management, a listed company (IBEX 35). High quality investments in the services and financial sectors. Active management of value, risk and liquidity. Market value of the listed investments portfolio 20,118 million with unrealized gains of 3,945 million. Diversified and good quality loan portfolio. Strong guarantees and high coverage. NPL ratio: 3.42%. Coverage ratio: 62% (127% including mortgage guarantee). High liquidity level of 21,208 million (7.8% total assets) immediately accessible. Excellent capital ratios (Core Capital 8.7%) and very good ratings (AA rank). Social commitment Budget for 2010: 500 million. Social, environment and science, cultural and education and research programmes. la Caixa Group Strategy Develop the Triple Bottom Line: Financial, Social and Sustainable. Financial Bottom Line: efficient, profitable and solvent growth. Social Bottom Line: creating value for the society. Sustainable Bottom Line: Socially responsible conduct, Ethics and Corporate Reputation. 5

6 1 (ii) Executive Summary 2009: Consolidation of the financial strengths with great commercial activity High level of commercial activity and great quality of income. Risk management and consolidation of the financial strengths: liquidity, solvency and ratings. million euros change Absolute in % Total assets 271,873 11, % Sustained and balanced growth Customer loans (gross) 178,026 1, % Total customer funds 237, % Net interest income 3, % Gross income (total income) 7, % Great quality of income: - Strong increase of income - Cost containment - Prudence in booking allowances Operating Costs (3,565) 1.0% Net operating income 3, % Impairment losses on financial assets (1,401) 126.4% Recurrent Profit 1,710 (16.7%) Extraordinary income (200) Profit attributed to the Group 1,510 (16.2%) Improved efficiency and high profitability Recurring cost-to-income ratio 42.9% (2.3) Recurring ROE 11.3% (3.5) Asset quality Strict risk management and control of NPLs NPL ratio 3.42% 0.94 Allowance coverage 62% (4) Allowance coverage with mortgage guarantee 127% (2) Consolidation of the Financial Strengths Liquidity ( 100% immediately accessible) 21,208 (1,054) Solvency - BIS II Core Capital 8.7% (0.1) Tier I 10.4% 0.3 Total Tier 11,0% 0.0 Very good ratings Ratings are confirmed in the AA rank by the 3 credit rating agencies 6

7 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Financial performance: Growth, efficiency and profitability 6. Risk management 7. Financial Strengths 8. Welfare Projects 9. Closing Summary 7

8 2 (i) Governing bodies la Caixa Governing bodies: duties and composition la Caixa Governing bodies: duties and composition 13% Financial institution that promotes social and welfare goals; it is privately managed and independent of any other company or institution. No shareholders. The government, administration, representation and control of la Caixa are in the hands of the General Assembly, the Board of Directors and the Control Committee. The governing bodies represent Depositors, Founding and Community- Interest institutions, Local authorities and Employees. The General Assembly: It is the institution s highest governing and decision - making body 160 members The Board of Directors: It decides upon the steps required to carry out the aims and objectives 21 members 21% % % Management team is exclusively made up of financial experts. The Control Committee: It oversees the correct management of the business by the Board of Directors members 3 Deposit Holders Local Government Corporations Founder and Community - Interest Entities Employees 8

9 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Financial performance: Growth, efficiency and profitability 6. Risk management 7. Financial Strengths 8. Welfare Projects 9. Closing Summary 9

10 3 (i) Banking Business: Great commercial strength A different and unique business model: basis for the success of la Caixa strategy Management model: Values Trust Social commitment Excellence in service Principles Action Organizational Proactivity Good treatment Community-oriented aims Innovation Efficiency Challenge-based management New competences and habits Decentralization and commercial autonomy Self-assessment Integrated management Customer oriented Personalized treatment Management model Risk management Close to the territory Multi-channel management Flexibility and adaptability Personal and professional growth of the employees 10

11 3 (ii) Banking Business: Great commercial strength A different and unique business model: basis for the success of la Caixa strategy Challenge-driven management based on la Caixa Corporate Values Qualitative and quantitative commitments set by the commercial network New abilities and new commercial habits To improve efficiency and commercial management Commercial Plans Commercial Plan for the year established by the branches Proactivity and decentralized decision taking To boost knowledge, experience and action Self-assessment Ongoing improvements in professional practices Global Management: Business Unit To gain customer funds, investments and liquidity. Risk and profitability management Safe, efficient, profitable and solvent growth 11

12 3 (iii) Banking Business: Great commercial strength A different and unique business model: customer oriented strategy GROWTH MANAGEMENT MODEL: CHALLENGES EXCELLENCE AND QUALITY SOLVENCY CUSTOMER oriented EFFICIENCY RISK MANAGEMENT INNOVATION PROFITABILITY 12

13 3 (iv) Banking Business: Great commercial strength Successful specialized business model that allows banking growth in Spain Families and SME s Core business Business model: sustained high quality growth 2008: Business Banking (development of a specialized network) and Private Banking (acquisition and integration of Morgan Stanley s division in Spain) 2009: Banking for SME s, self-employed and retailers and Personal Banking Large Estates Corporate Banking 10.5 million customers total 10* ** 373 managers & 31 units Private Banking 0.5* 65,013 28,814 Business Banking 10** 735 managers & 80 units 946 managers Personal Banking 468,107 92,074 SME Banking 852 managers 0.1* 1** Retail banking 9.8 million Individuals Assets managed range for each business Million Number of customers per business Companies ** Turnover range for each business Million 13

14 3 (v) Banking Business: Great commercial strength Banking business Million euros and percentage Positive management of margins and increase of loans allow the increase of business volume Customer funds Loans Business volume % 237, ,799 +1, % +1, % 414, , , ,

15 3 (vi) Banking Business: Great commercial strength Leader in banking for individuals Individual customer penetration Penetration share Individual customers (%) Penetration share 2009 by age range (%) Market leader Young (18-25) Indebted (26-44) 23.3% 26.9% % as first institution Savers (45-64) Retired (+65) 16.5% 19.7% Source: FRS Inmark 15

16 3 (vii) Banking Business: Great commercial strength Market shares By products, la Caixa consolidates its leadership position in Spanish market Among the 3 Top competitors in the main financial products Market shares and ranking position 1st Bankcard turnover Retailers bankcard turnover (POS) Salary payments Pension payments Share 17.7% 20.9% 15.1% 12.8% 2nd Pension plans Deposits Loans Share 15.6% 10.4% 10.0% Demand deposits 11.3% Life insurance Mortgage loans 13.8% 10.5% 3rd Factoring and confirming Share 11.6% National electronic clearing system 12.7% Commercial loans 9.3% Branches 12.0% Investment funds 8.5% ATMs 12.9% Shares as of December

17 3 (viii) Banking Business: Great commercial strength Geographic distribution of the branch network Wide capillarity of the branch network: in order to assure proximity to the client Specialized branch network: to focus the commercial activity Red Retail network universal Centros Specialized especializados branches Banca Corporate corporativa & institutions , Market share 12.0% ,665 Business Banca empresa Private Banca banking privada Oficinas Total Spain en Espa ña , Oficinas International internacionales Branches Total branches oficinas ,

18 3 (ix) Banking Business: Great commercial strength Internationalization: Service to customers and diversification Boost to the strategy of international growth in order to provide service to our customers and to diversify the business International branches Share of Foreign trade Letters of credit Poland Rumania Imports 9.6% 10.3% 12.7% 9.4% Full branches Representative offices Morocco Exports 5.1% 5.7% : New full branch in Casablanca New rep office in Shanghai and Istanbul 18

19 3 (x) Banking Business: Great commercial strength Internationalization: Service to customers and diversification International diversification, through Criteria CaixaCorp, with investments in banks focused in retail banking and businesses Investments in financial institutions Sixth financial institution in Mexico. (20.0%) (14.99%) (*) First independent private bank in Hong Kong, with an excellent position in China. (10.1%) Second banking group in Austria and one of the main in Central and Eastern Europe. 2009: (30.1%) Third universal financial group in Portugal. Strategic agreements of investment and commercial partnership with Erste Group Bank (10.1%) and The Bank of East Asia (14.99%) Strategic agreement with BPI to provide service to businesses in Spain and Portugal (20.9%) Leader online broker and distributor of savings products in Europe. Stakeholders agreement with Boursorama to create an on-line bank in Spain from Boursorama s subsidiary, Self Bank. (% directly and indirectly owned by Criteria CaixaCorp) (*) Includes the stake increase of 5.2% completed in January

20 3 (xi) Banking Business: Great commercial strength All channels: Efficiency and innovation An innovative strategy tailored to customers needs: in order to maximize branch sales activities. All channels (branches, ATMs, Internet, mobile telephone, etc.) complement each other and operate efficiently with ongoing commitment to technological innovation. Leader in Self Service systems Operations by distribution channel 2009 share % Internet Banking (Thousand Custom 6, % Automatic Branches 11% Operating Customers (Thousa 2,964 ATMs 7, % 34% 14% ATMs Retailers (POS) 167, % Bankcards issued (Thousands) 10, % Mobile banking (Thousand Custome 1, % 41% Internet 3.9 million operations (+4%) 55% total operations through Internet and ATMs 20

21 3 (xii) Banking Business: Great commercial strength Insurance business Leader in savings insurance Insurance group that provides service to more than 3.4 million costumers. Privileged position on life, individual and collective insurance. Customers (million) % 3.4 Increasing presence in non life insurance. Agreement for the acquisition of Adeslas, leader on medical insurance Assets under management (million) Technical Provisions (million) 28, % 31,000 16, % 17,

22 3 (xiii) Banking Business: Great commercial strength Brand reputation and excellence in service Excellent Brand reputation Excellence in service Financial brand with the highest reputation in 2009: ethics, corporate responsibility and perception of brand Monitor Empresarial de Reputación Corporativa 223,457 surveys to customers: Average customer satisfaction grade 8.4, (9 given by customers with a manager) (*) Institution with the lowest complaints ratio per business volume. (BanK of Spain) (*) Scale from 0 to 10. The best company to work for la Caixa is leader in the ranking 2009 of the best companies to work for by Merco Personas 22

23 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Financial performance: Growth, efficiency and profitability 6. Risk management 7. Financial Strengths 8. Welfare Projects 9. Closing Summary 23

24 4 (i) Equity Portfolio: Active management Equity portfolio Managed by Criteria CaixaCorp Active management of the equity portfolio through Criteria Selective investments in strategic sectors and realizing capital gains through divestments 79.45% Market value of the listed portfolio 20,118 million Services Listed on IBEX 35 Finance Unrealized capital gains 3,945 million Listed Gas Natural Abertis Agbar Repsol Telefónica BME Unlisted 36.4% 25.0% 15% - 25% (*) 12.7% 5.2% 5.0% Mediterranean Beach & Golf Resort 100.0% Port Aventura Entertainment 50.0% Listed GF Inbursa The Bank of East Asia Erste Group Bank Banco BPI Boursorama Unlisted 20.0% 14.99% (**) 10.1% 30.1% 20.9% Grup SegurCaixa 100% Holding + Adeslas 99.8% (*) GDS-Correduria 67% CaixaRenting 100% Finconsum 100% InverCaixa 100% GestiCaixa 100% Main transactions in 2009 Gas Natural: capital increase Unión Fenosa: (1,313 million ) Telefónica: sale of 1% (249 million net capital gain) Erste Bank: capital increase of 5.2% (652 million ) The Bank of East Asia: January 2010: increase of 5.2% up to 14.99% (331 million ) Adeslas: 1H2010 acquisition of 99.8% (1,178 millions ) Agbar: 1H2010 reduction of the stake (% directly and indirectly owned by Criteria CaixaCorp including corporate agreements to be completed) (*) Agreements 2009 to be completed in 2010 (**) Stake as of 14 January

25 4 (ii) Equity Portfolio : Active management Equity portfolio Managed by Criteria CaixaCorp Equity portfolio: Active management of value, risk and liquidity AN INSTINCT FOR INVESTMENT IN HOW? Business that are comprehensible, well managed, with a good track record and diversified + Prudently with careful monitoring waiting for opportunities with solid professional motives MANAGEMENT Presence on the board Capturing synergies in financial businesses Active investment management Attractive dividends policy 25

26 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Financial performance: Growth, efficiency and profitability 6. Risk management 7. Financial Strengths 8. Welfare Projects 9. Closing Summary 26

27 Excellent evolution of the Net operating income: 3,622 MM, +12.3% 5 (i) Financial performance: Growth, efficiency and profitability Quality of the recurring income Great increase of the Gross income +6.4% and cost containment +1.0% efficiency ratio improves to 42.9% (-2.3pp) High effort booking allowances 2,821 MM : 2,092 impact on 2009 P&L (1,401 recurring income and 691 extraordinary income) and 729 impact on previous financial years. Total income after tax 2,004 MM and Total income attributable to the Group 1,710 MM million euros % change Financial income 9,097 12,401 (26.6) Financial expenses (5,165) (8,893) (41.9) Net interest income 3,932 3, Dividends Income accounted for by the equity method Net fees 1,303 1, Gains & losses on financial assets & other products and operating expenses (19.2) Gross Income 7,187 6, Personnel costs (2,191) (2,113) 3.7 General expenses (893) (937) (4.7) Administration costs (3,084) (3,050) 1.1 Amortizations (481) (479) 0.5 Total operating costs (3,565) (3,529) 1.0 Net operating Income 3,622 3, Allowances for insolvency and others (1,401) (617) Profit/loss on disposal of assets and others (90) 10 Pre-tax income 2,131 2,616 (18.6) Income tax (127) (299) (57,6) Post-tax income 2,004 2,317 (13.5) Income attributable to minority interests Recurring Income attributable to the Group 1,710 2,052 (16.7) 27

28 5 (ii) Financial performance: Growth, efficiency and profitability The balance sheet strength reinforced with precautionary allowances for risks The extraordinary income allow the increase of the balance sheet strength: Active management of the equity portfolio: 249 million net capital gain from the sale of 1% Telefónica (Criteria) Extraordinary writedowns: 405 million gross (249 net attributable to the Group) Allowances for the future management of the business: 286 million gross (200 net attributable to the Group) million, net of taxes and minority intrests % Recurring Income attributable to the Group 1,710 2,052 (16.7) Extraordinary income Capital gains from sale 1% Telefónica 249 Net availability from allowances attached to insurance contracts 160 Fiscal profits from reinvestment of capital gains 100 Extraordinary writedowns (249) (225) Substandard credit risk and other (158) (160) Equity portfolio (91) (100) Allowances for the future management of the business (200) (250) Extrordinary income (200) (250) Income attributable to the Group 1,510 1,802 (16.2) 28

29 5 (iii) Financial performance: Growth, efficiency and profitability Sustained Growth of income Net interest income Income from equity portfolio Fees million euros 3, % 3,932 Dividends (dividends + equity method) 1, % 1, Banking 1, % 1, % Equity method Insurance and Pension plans +13.6% Investment funds (15.8%) Securities +29.3% Good management of margins Positive evolution of income from equity portfolio Adequate management of services provided to costumers. Fees/Operating costs ratio: 42.2% 29

30 5 (iv) Financial performance: Growth, efficiency and profitability Sustained Growth of income Traditional banking and the increase of income from the equity portfolio boost gross income. Gross Income Gross Income Change million euros 6, % 7,187 Breakdown Global Effect Net interest Income Income from equity portfolio Fees % Other (169)

31 5 (v) Financial performance: Growth, efficiency and profitability Improving efficiency Strict policy of cost containment Operating expenses containment million euros improving recurring cost-to-income ratio Cost-to-income ratio Personnel and general expenses/gross Income (in %) % 3,529 3,565 46,1% 45,2% ,9% Personnel + 3.7% General -4.7% Income and expenses increase million euros % Amortitzat % % Gross IncomeOperating expenses 31

32 5 (vi) Financial performance: Growth, efficiency and profitability Great increase of net operating income million euros Net operating income % 3,223 3,622 Great capacity of la Caixa Group to make profits that allow the booking of prudent allowances

33 5 (vii) Financial performance: Growth, efficiency and profitability Increases balance sheet strength million euros before tax EXTENSIVE ALLOWANCE COVERAGE IN 2009 Total allowances (gross) in 2009 Impact in P&L Allowances for credit losses (2,243) Impact P&L in 2009 (2,092) Specific allowances (1,897) Recurring income (1,401) Substandard risk and other (241) Extraordinary income (691) Total allowances (2,821 MM ) Precautionary allowances (105) Impact previous financial years (729) Allowances for early retirement (181) Extraordinary fund 2008 (357) Allowances for equity portfolio (164) Generic allowance reversal (372) Allowances for real estate (103) Other allowances (130) Total allowances (2,821) 33

34 5 (viii) Financial performance: Growth, efficiency and profitability Quality of income million euros and percentage Post-tax income (313) Recurring Income attributed (342) Income attributed to the Group (292) 2,317 (13.5%) (16.7%) (16.2%) 2,004 2,052 1,802 1,710 1, Net operating Income 3,223 3,622 Allowances for insolvency and others (617) (1,401) Income tax and others (289) (217) Post-tax income 2,317 2,004 Income attributable to minoritary interests (265) (294) Extraordinary income (250) (200) 34

35 5 (ix) Financial performance: Growth, efficiency and profitability Analytical balance sheet Change Million euros Absolute % Cash, Central Bks, credit inst. and debt sec. 33,678 30,203 3, Customer loans and credits 173, ,471 (1,830) (1.0) Assets under insurance contracts 21,261 19,829 1, Equity Securities 19,997 15,624 4, Noncurrent assets on sale 2, , Tangible and intangible assets and inventories 6,651 6,654 (3) (0.0) Other accounts 14,451 12,464 1, Total assets 271, ,827 11, Liabilities 250, ,906 8, Credit institutions 22,521 13,290 9, Customer Funds 205, ,376 (3,745) (1.8) Provisions 2,925 3,195 (270) (8.5) Other accounts 19,393 16,045 3, Total Equity 21,403 18,921 2, Own Funds 16,696 15,619 1, of which: Group income 1,510 1,802 (292) (16.2) Valuation adjustments 1, Minority interests 3,095 2, Total Liabilities and Equity 271, ,827 11,

36 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Financial performance: Growth, efficiency and profitability 6. Risk management 7. Financial Strengths 8. Welfare Projects 9. Closing Summary 36

37 6 (i) Risk management Diversified loan portfolio with good collateral The focus on families and SMEs allows to have a diversified loan portfolio and with good collateral Diversified Risk with adequate collateral Individuals 52% Mortgage guarantee 66% 88.5% mortgage loans with LTV < 80% 89.7% of the mortgage loans portfolio to finance first residences 41% Businesses 7% 34% Others Other guaranties Average LTV 49% 37

38 6 (ii) Risk management Strict monitoring of NPL Excellent and strict risk management and quality of the loan portfolio NPL ratio 3.42% (-0.11 vs. 3Q09) Non-performing loans and NPL ratio 3.40% 3.38% 3.53% 3.42% NPL Ratio 2.48% NPL loans 6,345 6,367 6,577 6,321 4, Q09 2Q09 3Q09 4Q09 la Caixa 3.42% Sector average 5.08% 38

39 6 (iii) Risk management Strict monitoring of NPL Active and anticipated NPL management million euros Non-performing loans. Quarterly entries and outputs Entries Outputs 2,626 2,057 1,437 1,428(1,406) (1,304) 1,067 1,073 1,048 (871) (863) 552 (562) (356) (361) (244) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Entries reduction in 2009 Significant increase in Outputs % recoveries 30% 72% 39

40 6 (iv) Risk management Total coverage of the business risks Conservative criteria in allowances : Coverage ratio increases by 62%, 127% with mortgage guarantees Provisions and coverage ratio Total provisions 2009 Coverage Ratio Specific allowance 2,079 MM 3,026 3,240 3,790 3,917 3,914 Generic allowance 1,835 MM (100% α factor) Same amount of generic allowance as in Dec.2009 Provisions Q09 2Q09 3Q09 4T09 Total provisions 3,914 Cost of risk 0.54% 1.24% 1.02% 0.97% 1.01% 40

41 6 (v) Risk management Servihabitat XXI million euros Servihabitat "la Caixa" real estate services company More than 500 REAs 2009: Commitments and sales as of 510 MM (2,854 properties) 1,100 rental contracts formalized Real estate portfolio Available for sale 2,726 From real estate developers 1,900 From individuals 826 For rental 371 Net real estate portfolio 3,097 Coverage 20% Real estate developers changes Entries 1,158 Sales T09 2Q09 3Q09 4Q09 41

42 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Financial performance: Growth, efficiency and profitability 6. Risk management 7. Financial Strengths 8. Welfare Projects 9. Closing Summary 42

43 7 (i) Financial Strengths Secure growth: Liquidity The balanced growth of the balance sheet and the active management of the sources of funding allow to enjoy high levels of liquidity: 21,208 million Liquidity guarantees the growth of the business fulfilling our customer needs for credit million euros Excellent levels of liquidity With a good financing structure Wholesale market actions Total Liquidity 21, % Group Assets Customer liabilities (70%) Wholesale funding (19%) Bank deposits (11%) Maturities 2009: Issues 2009: State guaranty Covered bonds Criteria bonds CB for EIB and FAAF Simple bonds/other 3,170 5,605 2,000 2,000 1, Q09 100% Immediately accessible providing stability Maturities 2010: No pressure in ,810 43

44 7 (ii) Financial Strengths Solvency: secure and guarantee for the future Very high solvency levels, with a Core Capital of 8.7%: The best among the direct competitors Self-financing of growth (RWA +9%) with the profits Regulatory capital surplus: 4,667 million euros Solvency ratios Basel II December 2009 Core Capital: Self-Financing through profits Core Capital Tier 1 BIS Ratio Minimum RequIrement Ratio Million 8.7% 13, % 16, % 17,251 8% 12,584 Reinforced with issues: Preference issues: 1,898 Subordinated debt: 2, (1Q10): Subordinated debt: 2,000-3,000 Capital surplus 4,667 Risk-Weighted Assets(RWA) 157,300 44

45 7 (iii) Financial Strengths Very good ratings Very good ratings of la Caixa in the AA rank confirmed by the rating agencies in 2009 LONG TERM SHORT TERM Outlook Confirmed September 2009 AA- A-1+ negative Confirmed April 2009 AA- F1+ negative Confirmed June 2009 Aa2 P1 negative The agencies highlight the commercial and financial strength of la Caixa Robust Spanish retail banking franchise; Excellent liquidity and solvency; Strong management and successful strategy; Contained risk profile; Good evolution of the banking business with expectations of strengthening commercial dynamism and containing costs. 45

46 7 (iv) Financial Strengths Very good ratings la Caixa is among the only 4 institutions (3 financial groups) with ratings from the 3 agencies in the AA rank Ratings of the main institutions of the financial Spanish sector Aa1 AA+ AA+ Aa2 1 2 AA AA 1 6 Very Good ratings of la Caixa in the AA rank Aa3 4 6 AA- AA- 2 4 A1 5 A+ A+ 5 7 Very high credit quality A A A A3 8 9 A- A- 8 Baa1 BBB+ BBB+ 9 Ratings as of 01/02/10 46

47 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Financial performance: Growth, efficiency and profitability 6. Risk management 7. Financial Strengths 8. Welfare Projects 9. Closing Summary 47

48 8 (i) Welfare Projects Efficient and flexible management of the resources for the Welfare Projects 2010 Welfare Projects budget: 500 million euros. Programs Million euros % Main programs New line of affordable housing Social (oriented to families) Poverty. Caixa for childhood. Labor support. Incorpora. Help for life (terminally ill patients). Environment and Science Conservation of Natural Spaces Cultural New CaixaForum Education and Research Scholarships (graduate studies, biomedical studies)

49 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Financial performance: Growth, efficiency and profitability 6. Risk management 7. Financial Strengths 8. Welfare Projects 9. Closing Summary 49

50 9. Closing Summary la Caixa" Group A reference Institution Leadership in retail banking in Spain Best equity portfolio Soundness, trust and good management practices to ensure success in the future Sound risk profile Social Commitment 50

51