la Caixa Group Institutional Presentation Third quarter 2010

Transcription

1 la Caixa Group Institutional Presentation Third quarter 2010

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 the 3Q10 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. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.Closing Summary Page

4 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.Closing Summary 4

5 1 (i) Executive Summary la Caixa Group 3Q10 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 Third ranking financial group in Spain in business and profits with more than 100 years of history. Market share on products and services around 10% and growing. Number one savings bank in Spain and Europe. Profit attributable to the Group 9M10: 1,228 million. Total assets worth 274,966 million. Specialized management model to provide service to 10.5 million customers. Families & companies: core business. Great commercial activity of the 28,014 employees: Business volume 421,338 million. Leader in main banking products and services: loans, deposits, credit cards, payroll deposits, pension plans Multi-channel management: leader in number of branches (5,229), ATMs (7,902), on-line and mobile 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 30/09/10: 17,818 million with unrealized gains of 2,084 million. Diversified and good quality loan portfolio. Strong guarantees and high coverage. NPL ratio: 3.53%. Coverage ratio: 66% (132% including mortgage guarantee). Generic provision: 1,835 million (100% parameter of risk α) High financial strength Very high liquidity level of 22,102 million (8.0% total assets) immediately accessible. Excellent capital ratios (Core Capital 8.7%) and very good ratings (Aa2\AA-\A+). Social commitment Budget Welfare Projects for 2010: 500 million. Social, environment and science, cultural and education and research programmes. la Caixa Group Strategy Data for September 10 Develop the Triple Bottom Line: Financial, Social and Sustainable. Financial Bottom Line: efficient, profitable, safe and solvent growth. Social Bottom Line: creating value for the society. Sustainable Bottom Line: Socially responsible conduct, Ethics and Corporate Reputation. 5

6 High level of commercial activity and quality of recurring profits. Strict risk management with high coverage and excellent level of liquidity and solvency. 1 (ii) Executive Summary 3Q10: Financial strengths with great commercial activity million euros September months change Great quality of income: - Capacity to generate recurring income - Cost containment - Prudence in booking allowances Good efficiency and high profitability Gross income (total income) 5,293 (4.2%) Operating Costs (2,569) (4.0%) Net operating income 2,724 (4.3%) Impairment losses on financial assets (1,226) 18.2% Profit attributed to the Group 1,228 (12.9%) Recurring cost-to-income ratio 43.0% 0.1 bp Recurring ROE 9.6% (3.2) bp 2010 Change Absolute % Sustained and balanced growth Strict risk management and control of NPLs and high coverage Total assets 274,966 3, % Customer loans (gross) 181,995 3, % Total customer funds 239,343 1, % Asset quality NPL ratio 3.53% bp Allowance coverage 66% +4.0 bp Allowance coverage with mortgage guarantee 132% +5.0 bp Financial Strengths Liquidity ( 100% immediately accessible) 22,102 Solvency - BIS II Core Capital 8.7% Tier I 9.9% Total Tier 11.7% (8.0% assets) Data for September 10 6

7 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.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 Founder and Community - Interest Entities Local Government Corporations Employees 8

9 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.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 Self-assessment Integrated management Management model Customer oriented Personalized treatment Risk management Multi-channel management Personal and professional growth of the employees Close to the territory Flexibility and adaptability 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 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 Business model: Great customer base Successful specialized business model that allows banking sustained and quality growth in Spain Families and SMEs Core business Wealth Banking 10 Corporate Banking 200 Strategic Plan : Consolidation retail banking & development complementary business segments Personal Banking 0.1 Private Banking 0.5 Business Banking 10 SME Banking million customers Retail Banking Individuals Companies (Assets managed range, million ) (Turnover range, million ) 13

14 3 (v) Banking Business: Great commercial strength Sustained increase of the banking business Balanced business growth in an environment of slow down Increase of market shares and consolidation of recurring income generation. 237, ,343 +1, % Million euros + 5, % 415, , Sept 10 Customer funds 178, , , % 2009 Sept Loans Sept 10 Business volume 14

15 3 (vi) Banking Business: Great commercial strength Leadership on market shares la Caixa consolidates its leadership position in the main financial products Market Shares and ranking position 1st 2nd Credit Cards (million) Bankcard turnover Retailers bankcard turnover (POS) Payroll deposits % 20.8% 15.3% Loans Pension plans Commercial loans Loans resident private sector 9.8% 16.1% 8.8% 10.0% Pension deposits 13.1% Long term deposits 9.2% Demand deposits 11.5% Mortgage loans 10.5% Savings Insurance National electronic clearing system 14.4% 12.8% 3rd Branches 12.0% Factoring and Confirming 12.3% ATMs Internet Banking 13.2% 30.8% Deposits Investment funds 9.2% 10.7% Mobile Banking 49.0% Last information available 15

16 3 (vii) Banking Business: Great commercial strength Leadership and sustained growth on market shares Intense commercial activity of la Caixa successful business model based on retail and SME banking, managed and specialized by segments, allowing a sustained growth on market shares. Penetration individual customers 130bp Payroll deposits Pension deposits Pension plans 118bp 76bp 12.8% 356bp 522bp 14.1% 14.4% 15.1% 15.3% 14.8% 12.5% 12,3% 12.6% 13.1% 12.6% 12.8% 14.7% 15.6% 16.1% Investment funds 5.5% 5.6% 6.9% 8.5% 10.7% Loans* Factoring & Confirming National elect. clearing system Foreign trade 15.8% As first bank 10.0% 12.3% 100bp 10.0% 11.6% 515bp 118bp 12.8% 9.6% 12,7% 12.7% 9.0% 9.1% 8.1% 11.6% 11.7% 7.2% 7.3% 11.6% bp 13.2% 11.8% 9.2% 8.0% n.d * Private sector resident Last data available Source: FRS Inmark, Social Security, Inverco, BdE, AEF and NECS 16

17 3 (viii) Banking Business: Great commercial strength Geographic distribution of the branch network Wide capillarity of the branch network: in order to offer proximity to the client Specialized branch network: to focus the commercial activity Red Retail network universal Centros Specialized especializados branches Banca Corporate corporativa & institutions Banca Business empresa Banca Private banking privada Oficinas Total Spain en Espa ña Oficinas International internacionales Branches , , Market share 12.0% , Total branches oficinas , Data for September 10 17

18 3 (ix) Banking Business: Great commercial strength Multi-channel management: Efficiency and innovation An innovative strategy tailored to customers needs: in order to maximize branch sales activities. All channels (branches, ATMs, Internet, mobile phone, etc.) complement each other and operate efficiently with ongoing commitment to technological innovation. Leader in Self Service systems sep-10 share % Operations by distribution channel Internet Banking (Thousand Customers) 6, % Operating Customers (Thousands) 3,185 ATMs 7, % Mobile banking (Thousand Customers) 1, % Automatic 35% Branches 10% 13% ATMs la Caixa : LEADER in multi-channel management 42% Internet 3.0 million operations (+5%) January- September % total operations through Internet and ATMs 18

19 3 (x) Banking Business: Great commercial strength Insurance business Leader in savings and health insurance Insurance group that provides service to more than 6 million customers Privileged position on life, individual and collective insurance and pension funds. Spanish market leader in complementary social protection. Leader in medical insurance (23.8% market share) with increasing presence in non life insurance. Leader insurance group: 6 million customers In June 2010, acquisition of Adeslas, leader in medical insurance in Spain. Assets under management 32,973 Life-savings premiums and contributions to Pension plans Risk premiums 30,042 2,975 1,089 2, Sept 09 Sept 10 9M09 9M10 9M09 9M10 Data for Sept 10 Million euros 19

20 Companies Individuals 3 (xi) Banking Business: Great commercial strength Brand reputation and excellence in service Excellent Brand reputation FRS - Household Financial Behavior la Caixa is the best financial institution in the ranking 2010 of the best companies to work for by Merco Personas Financial brand with the highest reputation in 2009: ethics,, corporate responsibility and perception of brand la Caixa is leader in customer retention : Monitor Empresarial de Reputació Corporativa Leader in internet Banking: Aqmetrix indicator rd Quarter st Quarter 2010 Banking for households Personal Banking 1 st (A 1 A 1 ) 1 st (A 2 A 1 ) 1 st (A 1 A 1 ) 3 rd (A 2 A 1 ) la Caixa has the highest average probability of being recommended Broker Online 1 st (A 1 A 1 ) 1 st (A 1 A 1 ) 29.3 Business Banking 1 st (A 1 A 1 ) 2 nd (A 1 A 1 ) Professional and Businesses 1 st (A 1 A 1 ) 2 nd (A 1 A 1 ) Foreing Trade 1 st (A 1 A 1 ) 1 st (A 1 A 1 ) A 1 A 1 : Highest possible rating 20

21 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.Closing Summary 21

22 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 Description of the equity portfolio GAV : 22,780 million 79.45% Other Listed Gas Natural Abertis Repsol Telefónica BME Unlisted Services Agbar Mediterranea Beach & Golf Community Port Aventura Entertainment 35.7% 24.6% 11.8% 5.0% 5.0% 24.0% 100.0% 50.0% Listed on IBEX 35 Listed Unlisted (% directly and indirectly owned by Criteria CaixaCorp) (*) In the process of divestment. Finance GF Inbursa The Bank of East Asia Erste Group Bank Banco BPI Boursorama SegurCaixa Holding + Adeslas GDS-Correduria CaixaRenting Finconsum InverCaixa GestiCaixa 20.0% 14.9% 10.1% 30.1% 20.8% 100% 67% 100% (*) 100% 100% 100% Financial (38%) International Banking 16% 20% 7% 11% 18% 16% 12% Services (62%) Listed portfolio la Caixa Group 30 September 2010: 17,818 million with 2,084 of unrealized capital gains Data for September 10 22

23 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 23

24 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.Closing Summary 24

25 5 (i) Geographic diversification. Internationalization Service to customers and diversification Boost the strategy of international growth, to assist our customers and diversify the business Exposure to emerging markets with high growth perspectives International banking branches and investments International banking investments: Sixth financial institution in Mexico by assets. 20.0% Poland Rumania 14.9% First independent private bank in Hong Kong, and among the foreign banks best positioned in China. Morocco 10.1% Second banking group in Austria and one of the main banks in Central and Eastern Europe with 17.4 million customers. 2010: New rep offices in Dubai Full branches Rep offices 30.1% 20.8% Third private financial group by business volume in Portugal, universal and multispecialized. Internet Banking, leader online broker and distributor of savings products in Europe. and New Delhi Data for September 10 25

26 5 (ii) Geographic diversification. Internationalization Diversification of income and risks Criteria: A geographically diversified equity portfolio Utilities portfolio: Leading Spanish blue-chips with a significant international presence Gas Natural Abertis Diversification of income (*): Rest of the world 5% Latin America 24% Agbar Repsol YPF Telefónica Spain 54% Europe 17% (*) Revenue source weighted by Criteria s GAV contribution 26

27 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.Closing Summary 27

28 6 (i) Financial performance: Quality of profits Quality of profits January - September Million euros Change % Financial income 5,159 7,235 (28.7) Financial expenses (2,708) (4,231) (36.0) Net interest income 2,451 3,004 (18.4) Dividends Income accounted for by the equity method Net fees 1, Gains & losses on financial assets & other operating products & expenses Gross Income 5,293 5,523 (4.2) DPersonnel costs (1,621) (1,642) (1.3) DGeneral expenses (591) (664) (11.0) Administration costs (2,212) (2,306) (4.1) Amortizations (357) (370) (3.5) Total operating costs (2,569) (2,676) (4.0) Net operating Income 2,724 2,847 (4.3) Allowances for insolvency and others (1,226) (1,037) 18.2 Profit/loss on disposal of assets and others (71) (33) Pre-tax income 1,427 1,777 (19.6) Income tax and minority interests (199) (367) (45.6) Recurring profit 1,228 1,410 (12.9) Extraordinary net income 0 0 Extraordinary income Extraordinary allowances (233) (249) Total profit attributable to the Group 1,228 1,410 (12.9) 28

29 6 (ii) Financial performance: Quality of profits High level of income Great capacity to generate recurring income with good management of margins million euros Net Interest Income Fees % 3,004 2,451 Banking Insurance and pension plans % 1, % +21.8% Investment Funds Securities 9M09 9M % -15.3% 9M09 9M10 Fall in interest rates reflected in mortgage repayments Volume containment Active management of margins Increase number of transactions Adequate management and quality of service 29

30 Generation of recurring income and strict policy of cost reduction 6 (iii) Financial performance: Quality of profits Net operating income and good efficiency Gross Income million euros % 5,523 5,293 Net operating Income % 9M09 9M10 2,847 2,724 Cost-to-income ratio stands at 43,0% Operating Costs 2, % 2,569 Amortizations General -3.5% -11.0% 9M09 9M10 Personnel -1.3% 9M09 9M10 30

31 6 (iv) Financial performance: Quality of profits Great Quality of recurring profits Great capacity to generate recurring profits which allow to record a significant amount of allowances to increase balance sheet strength No use made of the generic provision which remains at 1,835 MM (100% parameter of risk α) million euros Million euros change vs. 9M10 9M09 Allowances for credit losses and others Net operating Income 2,724 (4.3%) Allowances for credit losses and others (1,226)18.2% Profits/losses on the disposal of assets and others (71) % Income tax and minority interests (199) 1,226 Recurring profit attributable to the Group 1,228 (12.9%) 1,037 Prudent effort Profit attributable to the Group 1,228 M Generic provision remains at 1,835 MM (100% parameter of risk α) Absorption of the 75 million impact of from the new Bank of Spain circular. 9M09 9M10 31

32 6 (v) Financial performance: Quality of profits Extraordinary net income Extraordinary net income: as a consequence of the financial flexibility and they allow to reinforce the strength of the balance sheet January - September Change (million euros, net of taxes and minority interests) % Recurring profit attributable to the Group 1,228 1,410 (12.9%) Million euros Extraordinary profit 233 Gains Agbar/Adeslas operation and other portfolio sales Extraordinary writedowns (233) Prudential allowances for real state,credit risk and other risks Active management of the equity portfolio Capacity to realize net capital gains Increasing the strength of balance sheet through allowances Recurring Allowances Extraordinary allowances TOTAL ALLOWANCES 1, (233 net) 1,543 Profit attributable to the Group 1,228 1,410 (12.9%) 32

33 6 (vi) Financial performance: Quality of profits Analytical balance sheet (million euros) September December Change Absolute % Cash, Central Bks, credit inst. and debt sec. 26,588 33,678 (7,090) (21.1) Customer loans and credits 176, ,641 2, Assets under insurance contracts 22,306 21,261 1, Equity Securities 19,938 19,997 (59) (0.3) Other accounts 29,919 23,296 6, Total assets 274, ,873 3, Liabilities 252, ,470 2, Credit institutions 23,599 22,521 1, Customer Funds 203, ,631 (2,476) (1.2) Provisions 2,818 2,925 (107) (3.7) Other accounts 23,313 19,393 3, Total Equity 22,081 21, Own Funds 17,370 16, of which: Profit attributable to the Group 1,228 1,510 Valuation adjustments 1,514 1,612 (98) (6.1) Minority interests 3,197 3, Total Liabilities and Equity 274, ,873 3,

34 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.Closing Summary 34

35 7 (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 51% Mortgage guarantee 67% 88.6% mortgage loans with LTV < 80% 10% 39% Businesses 33% 89.1% of the mortgage loans portfolio to finance first residences Others Other guarantees Average LTV 48% Data for September 10 35

36 7 (ii) Risk management Strict monitoring of NPL Strict risk management that allows to contain the NPL ratio consolidating a significantly better position than the sector Non-performing loans and NPL ratio NPL ratio 3.40% 3.38% 3.53% 3.42% 3.49% 3.46% 3.53% Non performing loans 6,345 6,367 6,577 6,321 6,427 6,529 6,636 la Caixa 3.53% Sector average 5.62% (August) 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 million euros 36

37 7 (iii) Risk management Total coverage of business risks Conservative criteria on allowances and adequate provisions No use of generic provision during 2010 la Caixa Provisions and coverage ratio 66% Sector average Coverage ratio with mortgage guarantees Coverage Ratio 117% 51% 3, % 127% 127% 126% 129% 132% 60% 60% 62% 62% 64% 66% 3,790 3,917 3,914 3,987 4,198 4,362 Total provisions 30 september 2010 Specific provisions 2,527 million Generic provisions 60% (August) Specific and generic provisions 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 1,835 million (100% parameter of risk α) Total provisions 4,362 million Cost of risk 1.24% 1.02% 0.97% 1.01% 1.00% 0.96% 0.92% million euros 37

38 7 (iv) Risk management Strict monitoring of NPL Strict monitoring of NPL. Non-performing loans. Quarterly inflows and outflows Million euros Inflows Outflows ,054 Active and anticipated management ,989 3,124-2,277 2,121-2,167 2,060-1,852 Sustained decrease of inflows , Active management of outflows 1H08 2H08 1H09 2H09 1H10 3Q10 % recoveries 30% 72% 90% 38

39 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.Closing Summary 39

40 8 (i) Financial Strengths Secure growth: Liquidity Excellent liquidity position (22,102 million euros): 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 Maturities 9M10: 2,610 Total Liquidity 22, % Group Assets Wholesale funding (19%) Customer liabilities (69%) Bank deposits (12%) Issues 2010: Mortgage covered bonds(*) Public sector CB Senior bonds (*)525 million in oct 10 4,107 2,967 1, Maturities 2010: /09/ % Immediately accessible providing stability... Anticipating 2011 maturities Data for September 10 40

41 8 (ii) Financial Strengths Solvency: security and guarantee for the future The Group maintains very high solvency levels, with a Core Capital of 8.7% (+0.1 pp in 3Q10) Regulatory capital surplus: 5,995 million euros Core Capital: Self-financing through profit growth CORE CAPITAL EVOLUTION SOLVENCY RATIOS Basel II September % +40 b.p. 9.1% 8.7% 3Q10 Ratio Million Change 2010 Self-financing -40 b.p. Core Capital Tier 1 8.7% 9.9% 14,181 16, BIS Ratio 11.7% 19, Minimum Requirement 8% 13,018 Capital surplus 5,995 Risk-Weighted Assets (RWA) 162, % Profit and RWA s growth Impact Agbar / Adeslas operation (*) 2009 Subtotal Sept10 (*) In June 2010 sale of 22% of Agbar and acquisition of 100% of Adeslas +0.1 pp in 3Q10 Data for September 10 41

42 8 (iii) Financial Strengths Very good ratings Very good ratings of la Caixa : the agencies evaluate positively la Caixa Group strengths Robust Spanish retail banking franchise; The agencies highlight the great commercial and financial strength of la Caixa Group Excellent liquidity and solvency; Strong management and successful strategy; Contained risk profile; Good evolution of the banking business. Rating situation of la Caixa Group LONG TERM SHORT TERM Outlook June 2009 Aa2 P1 negative June 2010 AA- A-1+ negative September 2010 A+ F1 stable Rating situation in September

43 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.Closing Summary 43

44 9 (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)

45 Contents 1. Executive Summary 2. Governing Bodies 3. Banking Business: Great commercial strength 4. Equity Portfolio: Active management 5. Geographic diversification. Internationalization 6. Financial performance: Quality of profits 7. Risk management 8. Financial Strengths 9. Welfare Projects 10.Closing Summary 45

46 10 (i) Closing Summary In a difficult environment la Caixa continues to show: High level of commercial activity: quality of service and increase in market shares Multi-channel and specialization: service to all customers Great capacity to generate recurring profits from businesses Great commercial activity with an increase of market shares Severe policy of cost reduction Strict risk management, no use of generic provision, and coverage growth Capacity to generate extraordinary profits: active management of the portfolio and conservative allowances Consolidation of financial strengths: liquidity and solvency Increase of the Financial Strengths: Liquidity, solvency and balance sheet soundness 46

47 10 (ii) 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 47

48