The leading force in Spanish retail banking Corporate Presentation

Transcription

1 The leading force in Spanish retail banking Corporate Presentation February 2015

2 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 Competitive stance p Balance sheet strength p Diversification p Financial performance update: FY14 p Strategy update p. 49 : p. 63 Corporate governance Ratings Financial statements 3

4 CaixaBank [At a glance] 4

5 At a glance The leading financial group in Spanish retail banking Flagship institution Robust financials Solid heritage & values #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: bestin-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; 10 th Eurozone bank by market cap. Listed since July 1 st 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 All data as of December 31 st

6 A consistent growth story Aiming for long term sustainable growth Strategic plan Strategic plan Leadership in retail banking Internationalisation Criteria IPO Making the difference Growth in retail banking market share Rationalising the cost base Leadership in Spanish retail Banking International banking: diversification IPO: access to stock market la Caixa Group Reorganisation Reaching 15% market share in Spain Bolstering balance sheet strength Value creation: financial & social / IPO Acquisitions (ESPANYA) Insurance 50% CaiFor Acquisitions IPO Acquisitions Transformation of "la Caixa" into a Banking Foundation Acquisition BBSAU 6

7 Group structure A streamlined organisation of the Group Welfare program 1 2 In June 2014, la Caixa became a banking foundation 1 and in October it completed the formal reorganisation of the Group after segregating to Criteria CaixaHolding 2 liabilities and assets, including its stake in Caixabank % 100% Industrial/Real Estate 2 (34.4%) (19.2%) (5%) (50.1%) (20%) Other 3 Industrial/Real Estate (11.9%) (5.3%) Building Center (100%); Sareb (12.4%); Servihabitat Serv. Inm. (49%) ~59% 1 International Banking portfolio 1 (9.0%) (9.9%) (18.7%) (20.5%) (44.1%) 3 Financial Retail Banking & Insurance Bank-Insurance activities, supported by financial subsidiaries Insurance business VidaCaixa Group 100% VidaCaixa 100% SegurCaixa Adeslas 49.9% Specialised financial services: Asset management: InverCaixa Credit cards: CaixaCard Consumer finance: Finconsum PoS payments: Comercia Global Payments 100% 100% 100% 49% (1) As of December 31st 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. 7

8 Competitive [Stance] 8

9 Competitive stance Leading position in Spanish retail banking underpinned by a competitive business model Leader in retail banking Quality of service + Trustworthy brand Segmentation Omnichannel distribution network Innovation & Technology Wide-ranging product offering through an integrated platform Robust financials Solid values 9

10 Segmentation Segmented businesses: key to meet client needs and bolster business volumes Customer breakdown by segment In Million Customers 1 Business volume breakdown by segment 2 In % Specialised network Specialized sales force (0.1) (0.5) Wealth Banking Corporate Banking (10) (200) Private Business Banking Banking 0.04M 0.04M (9) Affluent SME 0.7M Banking Banking 0.09M (1) 13.4 M customers 47% 9% 23% 11% 3% 7% Retail Banking Affluent Banking Private Banking 3 SME Banking Business Banking Corporate Banking Individuals, in Million (assets managed range, M) Retail banking 12.6M customers Companies, in Million (turnover range, M) A highly segmented business model based on specialisation and quality of service The largest customer base (1) Excluding public sector, as of December 31 st (2) Loans + customer funds. Excludes RE developers and public institutions,as of December 31 th (3) Including Wealth Banking. At a glance Competitive stance Balance Sheet Diversification Performance Strategy 10

11 Omni-channel distribution network Best-in-class omni-channel distribution network Branches: the largest footprint (17.3% market share) 1 Breakdown of branch market share 10.9% 7.6% 13.9% 16.3% 10.3% 8.1% 18.9% 26.9% 9.2% 10.8% 11.8% 30.6% 19.0% Ceuta 10.0% Melilla 30.0% 6.6% 22.9% 14.2% 13.7% Low ratio of employees per branch Breakdown of branches by number of employees, in % Dec-14 18% 41% 30% 6% 5% >10 5,251 Branches + ATMs: the widest network in Spain 9,544 ATMs 19% market share % absorption ratio 3 Internet banking: European leadership 10 million customers 34,4% online market penetration % absorption ratio for businesses 5 Mobile banking: Global leadership 4.4 million customers 6 22% of transactions (1) Latest available data. Unless noted otherwise, data as of December 2014 (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 (5) Operations considered: national bank transfers, Buy/sell stocks, bank bills (bill discount and bill acceptance). (6) Own calculations 11

12 Omni-channel distribution network Focus on omni-channel banking reduces costs and increases clients perceived value Digital channels gain importance Transactions by channel 1 (%) 18% 41% 20% 21% 41% 34% 52% 54% 29% 29% 14% 10% 9% 11% 9% 8% Internet & Mobile (Mobile: 21%) OPSs and automated ATMs Branches freeing up retail network resources to perform advisory and other higher value-added tasks Exponential growth of active internet & mobile clients 2 Active online banking customers In M % +9% % +86% X 1.8 X 8 +26% +73% % Active mobile banking customers In M +15% +8% % % Online Penetration 3 (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 At a glance Competitive stance Balance Sheet Diversification Performance Strategy 12

13 Innovation & Technology IT: Integral to our culture and key to meet evolving customer preferences New A flagship branches The new flagship branches serve as living labs, experimenting within the branch Adapting to changing customer needs 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 Enhancing customer centricity Next-generation ATMs 8,500 high-performance multi-functional ATMs 500 M investment over a 10 year period Contactless and NFC technologies NFC mobile payment system (partnership with three main mobile operators Movistar, Vodafone and Orange) 1 st in Europe to launch contactless bracelet Wearable banking CABK apps for new devices Google glasses: branch finder, currency convertor Reduces costs, improves user experience and increases perceived value Leading the development of new payment technologies Engaging digital consumers and fostering cross-channel integration

14 One-stop financial shop 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 bn AuM (2) #2 in Spain InverCaixa 100% Revenue diversification Credit cards 25.4 bn turnover (2) 13.3 M cards CaixaCard 100% Economies of scope Cost competitiveness Consumer Finance 1.2 bn Assets 637 M new business Finconsum 100% Significant contribution to ROE Non-life insurance 2.1 bn premia SegurCaixa Adeslas 49.9% Payments at point of sale (1) Assets under Management (2) 12 months 31.3 bn turnover (2) 266,240 PoS terminals Comercia Global Payments 49% Ownership preserved throughout the crisis 14

15 Bespoke service Well-positioned to exploit niche market opportunities Launched September 2014 Specialised models by segment 5,685 Branches 1 o.w. 386 Branches specialised branches 468 with specialised # CaixaBank branches # AgroBank branches (1) Includes branches and representative offices abroad Ceuta Melilla Agricultural business segment 1 M agricultural, livestock and farming businesses in Spain 3% of GDP Proximity NETWORK CAPILLARITY SINGLE PLATFORM One-stop financial services provider Bespoke product & service offering Specialised sales force + Quality of service SEGMENTATION TECHNOLOGY Leading adopter of mobility solutions 325,000 (28%) Clients (market penetration) +28,057 admission from launched At a glance Competitive stance Balance Sheet Diversification Performance Strategy 15

16 Customer satisfaction Highly rated quality of service and trustworthy brand European Seal of Excellence +600 EFQM: European Foundation for Quality Management Premium brand reputation: Awards and recognitions 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 most innovative bank of the year 2011 & 2013; Innovative Spirit and Product & Service Innovation Award 2014 Bai-Finacle (BAI & Infosys) The best Spanish bank in internet banking Global Finance 2014 The most Innovative business model in Private Banking Private Banker International Europe's best bank in mobile banking Forrester Innovation in Green IT The Banker (Financial Times Group) Certification AENOR for Affluent Banking business model AENOR (June 2014) Leader in customer loyalty, satisfaction and recommendations Businesses between 1 to 100 million in Spain ( bi-annual publication ) Quality 16

17 Social responsibility Corporate responsibility aims Promoting entrepreneurship and financial inclusion Transparency and good governance Incorporating social and environmental criteria in risk analysis, products and services Social commitment: corporate volunteering & spreading awareness of welfare projects CORPORATE VALUES HIGHLIGTS Quality Trust Social commitment 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 17

18 Market leadership The leading force in Spanish retail banking 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 2 Strong market shares across the board Market share by key products Mass retail banking Individuals Corporate Client AuM Insurance Payment systems 1, Customer penetration % 28.2% CABK as primary bank Deposits Loans Payroll deposits Pensions deposits Mortgages Consumer loans Corporate (main bank) SME (main bank) Factoring & confirming Pension Plans Mutual Funds Saving Insurance Life insurance Health insurance Credit cards turnover POS terminal Turnover % 9.8% 9.1% 14.4% 12.5% 11.0% 10.8% 10.9% 12.7% 7.3% 11.2% 5.6% 14.1% 9.1% 23.2% 17.6% 17.8% 24.1% 14.5% 14.9% 23.1% 20.0% 15.9% 15.7% 15,2% 18.3% 18.4% 19.4% 15.3% 21.3% 16.9% 27.9% 21.4% 24.9% Rank 1 st 1 st 2 nd 1 st 1 st 1 st 1 st 1 st 3 rd 1 st 3 rd 1 st 2 nd 1 st 1 st 1 st 1 st 1 st (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 2007 market share Growth and growing Source: FRS Inmark, Social Security, BoS, INVERCO and ICEA, latest available data At a glance Competitive stance Balance Sheet Diversification Performance Strategy 18

19 Acquisitions Growth and market leadership has been reinforced by acquisitions Proven integration track record / / /15 1 Private Banking Spain 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 12 months 6 months 5 months 12 months 1 8 months (1) It involved completing 4 sequential integrations. 19

20 Balance Sheet [Strength] 20

21 Balance sheet strength Best-in-class balance sheet metrics Reinforced asset quality Strong liquidity position Robust capital base 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% BIS-III Core Capital (fully loaded) at 12.3% BIS-III Core Capital (phase-in) at 13.1% Maintaining balance sheet strength is a key priority for management Figures as of December 31 st

22 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 % Refinanced loans 22.5 BdV bn yoy % 11.2% 11.4% 11.7% 11.4% 10.8% 10.5% 9.7% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q bn qoq Strong coverage at 55% 11.1 bn credit provisions YTD change: -197 bps Deleveraging: (lower denominator) Net NPL formation: +45 bps -242 bps 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 22

23 Asset quality by segment NPL ratios continue to decline across all segments QoQ changes in NPLs & NPL ratios by segment Loans to individuals Residential mortgages - home purchase (76) Other Loans to businesses Corporate and SMEs Real Estate developers Public sector Total 1 NPLs qoq var. ( M) (138) (62) (1,183) (79) (1,104) Ex- Real Estate developers 2 (211) 6 (1,315) 31 st Dec14 5.3% 4.1% 8.3% 18.9% 10.6% 54.6% 0.9% 9.7% 6.4% NPL ratios 30 th Sep14 5.3% 4.1% 8.4% 21.3% 11.5% 56.3% 1.0% 10.5% 6.7% 31 st Dec % 4.3% 8.6% 23.1% 10.9% 59.4% 1.8% 11.7% 6.8% First reduction of the ratio of corporate (ex RE) NPLs since 2011 Intensive clean-up of RE developer loan book: The largest contributor to the decline in NPLs Coverage NPL % ( 4.2 bn) Substandard Performing 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 bn (-30%) Dec'13 Mar'14 Jun'14-9.9% Sep'14 Dec'14 35% ( 0.2 bn) RE developer book backed by 4.4 bn of credit provisions with coverage of RE problematic loans at 53% (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 23

24 Foreclosed assets Additional year-end provisioning effort to facilitate future disposals Building Center 1 repossessed RE assets As of December Book Value in Million Euros (net of provisions) Net amount Coverage RE assets from loans to construction and RE development 4,922 57% % coverage Finished buildings 2,519 47% 54% 53% 53% 53% 55% Buildings under construction Land 353 2,050 61% 65% 6,169 6,412 6,747 6,956 6,719 RE assets from mortgage loans to households Other repossessed assets 1, % 50% Total RE assets for sale (net) 6,719 55% 1,850 2,064 2,285 2,479 2,771 Rental portfolio (net) 2,771 Dec'13 Mar'14 Jun'14 Sep'14 Dec'14 87% occupancy ratio AFS RE assets Rental portfolio Net foreclosed assets portfolio down 3.4% qoq but expected to increase in 2015 Coverage increased to 55% (1) The real estate holding company of CaixaBank, S.A. 24

25 Disposals Pace of commercial activity intensifies further in 4Q Building Center commercial activity In Million Euros +15% Building Center commercial activity In number of units +27% 2,180 1,106 2,512 1,132 Rentals 18,386 9,665 23,405 9,611 Rentals ,380 Sales 1 6,966 3,320 3,646 8,721 13,794 Sales 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 (1) Revenue of RE sales by Building Center 25

26 Liquidity Keeping an excellent liquidity position despite early repayment of LTRO Total liquidity In Billion Euros Dec'13 Sep'14 Dec'14 ECB funding In Billion Euros % % Dec'13 Sep'14 Dec'14 Balance sheet liquidity 2 Unused ECB discount facility Slight 4Q increase in LtD as net loan growth exceeds increase in retail funds LTD ratio evolution 1 110% 105% 102% 102% 104% Dec'13 Mar'14 Jun'14 Sep'14 Dec'14 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 LTRO TLTRO (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 26

27 Solvency Comfortable solvency metrics facilitate gradual return to cash dividends CET1 ratio 1 evolution yoy - In % Capital position 1 as of December 31 st Fully loaded Phase in 11.7% -38 bps DGF 11.3% +94 bps Capital generation 12.3% 12.1% 2-27 bps DGF 11.8% +128 bps Capital generation 13.1% Phase-in Fully Loaded Total Capital 16.2% 15.5% Leverage ratio 5.8% 5.4% Jan 14 Jan 14 (restated) Dec 14 Jan 14 Jan 14 (restated) Dec 14 CET1 13.1% 12.3% CET bn 17.1 bn 16.9 bn CET bn 18.0 bn 18.3 bn RWAs bn bn bn RWAs bn bn bn 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 (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. 27

28 ECB comprehensive assessment confirms best-in-class solvency ECB Comprehensive Assessment The most solvent 1 amongst the top 10 Euro Area banks 2 BIS III Phase-in CET1 as % of RWA in the adverse scenario Results breakdown BIS III Phase-in CET1 as % of RWA CaixaBank BBVA Santander 10.3% 9.0% 8.9% 10.9 % 10.8 % 12.6 % 10.3% 1,1-4 bps +180 bps -230 bps +110 bps 11.4% Deutsche Bank Crédit Agricole 8.9% 8.8% 2013 Pre- AQR 2013 Post AQR 2016 Baseline 2016 Adverse 2016 Adverse post MCB 3 ING 8.7% AQR: Intesa Sanpaolo Société 8.3% 8.1% Minimal impact (-4bps) Lower impact than peers 2 Overall excess provisioning relative to AQR standard BNP Paribas UniCredit Threshold 8.1% 6.8% 5.5% 8bn surplus 3 ST Adverse Scenario: CABK outperforms Euro Area and Spanish peers 2 Capital surplus of 9.5bn with MCB converted in (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 24 th 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. 28

29 Investment [Diversification] 29

30 Internationalisation Growth-driven strategy, risk diversification and customer support Rep offices & branches to serve clients + Investments in growing markets International banking stakes: 4.4bn market value % 20.5% 9.9% In M Stake market value 1 Consolidat ed carrying amount 4 Of which Goodwill 4 BEA 1,455 1, Boursorama % BPI % Erste Inbursa 1, Representative offices International branches Banking stakes 1 16 Representative Offices Paris, Milano, Frankfurt, London 2, Beijing, Shanghai, Dubai, New Delhi, Istanbul, Singapore, El Cairo, Santiago de Chile, Bogotá Forthcoming 2 : NY, Sao Paulo, Algiers 4 International Branches Warsaw (June 2007) Casablanca (July 2009) Tangier (November 2013) Loan Portfolio: 184 M 3 London 2 (expected 2H2015) Controlling Acquisitions + Control/Synergies/Risk - Control/Synergies/Risk Financial positions Investing in local winners (Strategic plan ) Long term and at fair value Influential positions Building strategic alliances Sharing best practices JVs and project development (1) As of December 31st (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. At a glance Competitive stance Balance Sheet Diversification Performance Strategy 30

31 Banco BPI Voluntary Tender Offer for Banco BPI, S.A. BPI: key figures 2014 Assets 42.6 bn Net loans 25.3 bn Client funds 35.4 bn Shareholder funds 2.1 bn FL CET1 ratio 1 8.6% LtD ratio 2 84% Rec. cost-to-income ratio 3 64% Cost of risk 0.70% Details of proposed transaction 1 VTO for all shares in BPI not yet owned by CABK, representing 55.9% or million of outstanding BPI shares 2 3 Closing estimated for 2Q 2015: conditional on >50% shareholding and removal of 20% voting cap (requiring broad shareholder support) 3 VTO price of per share payable in cash 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 and improving thereon Estimated fully-loaded CET1 impact of 110 bps 5 Significant synergy potential of 130 M per annum expected by 2017, with an NPV of 650 M (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 bps, respectively At a glance Competitive stance Balance Sheet Diversification Performance Strategy 31

32 Industrial stakes Solid, liquid assets providing revenue and capital diversification 5.3% 1 Diversification Income diversification: sound revenue base Geographical diversification: ~65% revenues generated abroad One of the largest telecommunications companies in the world in terms of market cap and number of customers. Company market value 1 : 55.5 bn 11.9% 1,2 Integrated global energy company, carrying out upstream and downstream activities. Company market value 1 : 20.6 bn 5.4 bn 3 Value Profitability Financial flexibility International leaders, defensive sectors Solid fundamentals Strong financials High dividend yield Attractive return Tax-efficient ( 5%) Very liquid investments Limited regulatory capital consumption Potential capital buffer (1) As of December 31st (2) CaixaBank s stake in Repsol could be reduced by a maximum of 2.5% after the exchange of the M mandatorily exchangeable bonds maturing in Nov 16. (3) Market value of CaixaBank stakes as of December 31st

33 Financial [Performance] 33

34 Asset allocation to off-balance sheet products continues Activity & Results FY14: Funds 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 funds 1 Pension plans Other managed resources 2 Total client funds 31 st Dec yoy 2.5% 16.3% (10.5%) (4.6%) (6.9%) 4.7% (20.3%) 15.2% 34.1% 18.7% (37.4%) 5.2% (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 qoq 0.8% 5.1% (4.4%) (1.9%) (0.4%) 1.5% 4.5% 4.5% 6.0% 7.0% (8.5%) 1.7% Profitable shift in client saving mix 4Q Client funds change qoq, in Billion euros +4.5 Demand deposits +2.1 Mutual funds +1.8 Insurance & pension plans Client funds growth qoq bn (+1.7%) -0.6 Other -3.3 Time deposits 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 34

35 Performing loan book ex-re now stabilising Activity & Results FY14: Loan-book Loan book breakdown In Billion Euros, gross 31 st Dec. yoy qoq I. Loans to individuals (5.4%) (1.4%) Exceptionally good 4Q aided by seasonality and one-offs Residential mortgages home purchases 1 Other II. Loans to businesses Corporates and SMEs Real Estate developers Criteria CaixaHolding and la Caixa BF (4.7%) (7.3%) (8.9%) (3.2%) (29.6%) 114.9% (1.3%) (1.7%) 3.7% 7.8% (9.9%) 2.3% 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 Loans to individuals & businesses III. Public sector (6.8%) 33.4% 0.6% 14.6% TLTRO funding & increased state support to regional and local governments allow for increased volumes but lower spreads Total loans (4.8%) 1.4% Q4 provides greater conviction for stable performing loan book in 2015 Performing loans (ex RE) (1.7%) 2.7% (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

36 New lending 1 growth Growth of gross loan book amounts over the period +26% FY14 vs FY13 +54% 4Q14 vs 4Q13 Corporates and SMEs Consumer lending New lending picks up on improved macro backdrop FY14 vs FY13 +48% +19% 4Q14 vs 4Q13 +65% +25% Activity & Results FY14: Loan-book 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 Residential Mortgages +30% +42% Signs that deleveraging is leveling off Gross Loans and advances to customers, in Billion Euros % ,700 new accounts Enhances Customer centricity Leading adopter of banking mobility solutions 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q % Client penetration among the selfemployed bps FY % (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. Source: FRS Inmark 36

37 Net income underpinned by solid operating performance Activity & Results FY14: Income Statement Consolidated income statement In Million Euros FY14 FY13 6 yoy (%) qoq (%) Net interest income Net fees and commissions Income from investments 1 Gains on financial assets and exchange rate d. Other operating income & exp. Gross income Recurring expenses Recurring pre-impairment income 2 Extraordinary expenses Pre-impairment income Impairment losses & others Provision for early retirement scheme 3 Gains/losses on disposal of assets and others 4 Pre-tax income Income tax 5 Profit for the period Minority interests Profit attributable to the Group 4,155 1, (171) 6,940 (3,773) 3,167 3,167 (2,384) (195) (386) ,955 1, (475) 6,365 (3,947) 2,685 (839) 1,579 (4,329) 1,770 (980) 1, (8) 316 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 income 5 (1) Includes dividends and income from associates (2) 2013 does not include: M related to the change in the accounting treatment of DGF levies (IFRIC 21); 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 includes mainly BdV badwill and the capital gain from the partial disposal of Inbursa (5) Includes 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 (5.8) (64.0) 9.0 (4.4) (44.9) (67.6) (13.3) (2.6) (66.6) (4.0) (4.0) 37

38 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 Banking & insurance (ex RE) Strong core income improvement Cost-to-income ratio down to 52.7% Core business profitability reaches double-digit ROTE levels Consolidated income statement, by business segment FY14 4,155 1, ,940 (3,773) 3,167 (2,384) (195) (386) / % 54.4% Real Estate activity Banking & insurance (ex -Real Estate) 4,462 1, ,952 (3,665) 3,287 (1,387) (195) (16) 1,689 (148) 1, % 52.7% Intensive clean up and provisioning to facilitate future disposals Losses on RE sales still continuing (1) The Real Estate activity includes primarily loans to RE developers and foreclosed real estate assets 305 Activity & Results FY14: Segment reporting Real Estate activity (166) (156) (105) (261) (997) (388) (1,646) 498 (1,148) 1.8 (63.1%) 305 Equity Investments (308) (3) % Investments Lower qoq income from associates TEF dividend registered in 4Q 38

39 NII guidance delivered with four quarters of sequential improvement Activity & Results FY14: NII NII up ~5% yoy as cheaper funding offsets lower volumes NII, in Million Euros Customer spread up 8 bps qoq driven by continued reduction in time deposit costs In % % FY13: 3,955 FY14: 4, Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q , ,022 1,059 1,081 Loans and credits Customer funds Customer spread NIM improvement fuelled by stable asset yields and funding cost improvements In % 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q % Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Total assets Total liabilities NIM 39

40 Funding cost improvements continue outpacing new loan yield pressure Activity & Results FY14: Spreads Deposit re-pricing trends stabilising Time deposits and retail CP - Back vs. front book (bps) Front book decline reflects large corporate deals Loan book yields - Back vs. front book (bps) Back Front Back Front 306* 300 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Wholesale funding costs a leading indicator of asset yields Indicative yields of CaixaBank issuing wholesale securities with a 5 year maturity (%) Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Covered bonds -190 bps Senior debt 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 (*) Front book at 306 excluding large year-end transactions Front book loan yields affected by year-end wholesale banking transactions TLTRO & better cost of market funding being gradually passed on to customers 40

41 Activity & Results FY14: Fees Fees driven by secular shift in client saving trends Net fees In Million Euros Net fee breakdown In Million Euros +3.7% FY13: 1,760 FY14: 1, Banking services, sec. and other Mutual funds FY14 1, yoy (%) (4.4) 38.4 qoq (%) Insurance and pension plans (1.7) Net fees 1, Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q % Introduction of caps: Credit cards: September 2014 Pension plans: October 2014 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 41

42 Both costs and income contribute to efficiency gains Activity & Results FY14: Operating costs Costs down on delivery of synergies and strong focus on expense control In Million Euros Recurrent 1 cost-to-income ratio Ratio in %, expenses and income in Million Euros Cost saving targets Evolution of operating costs M , Extraord. 1, Recurrent costs -4.4% FY13: 3,947 FY14: 3,773 1, % 57.7% 57.7% 57.0% 54.4% 6,632 6,705 6,606 6,600 6,940 (3,947) (3,868) (3,812) (3,764) (3,773) Original target Booked FY13 Total costs 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 4Q13 1Q14 2Q14 3Q14 4Q14 Expenses Income C/I Ratio 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 (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 does not include: M related to the change in the accounting treatment of DGF levies (IFRIC 21); M of expenses associated with the Group restructuring process 42

43 Activity & Results FY14: Core operating income Core operating income to underpin future bottom line growth Core Operating Income: Clear upward trend NII + Fees - Recurring Expenses (In Million Euros) Solid evolution of Core Operating Income underpinned by: +25% FY13: 1,768 FY14: 2,207 Recovery of NII: Driven by NIM improvement on normalisation of funding costs +5.1% yoy Improvement in net fees: +3.7% yoy Driven by a shift in client savings mix to life insurance and assets under management 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q % Recurrent costs down: -4.4% yoy Strict cost discipline keeping costs flat 43

44 Activity & Results FY14: ALCO Lower fixed income contribution partially offset by wholesale funding maturities ALCO fixed income portfolio evolution 1 In Billion Euros Wholesale funding maturities schedule In Billion Euros Yield 3.3% 3.4% 3.4% 3.4% 3.4% Average life 2.1y 2.2y 2.6y 2.5y 3.1y Dec'13 Mar'14 Jun'14 Sep'14 Dec'14 Spanish sovereign bonds Other Wholesale maturities as of December 31 st 6.7 bn 7.3 bn Cost (Total yield) Potential for improvement in the cost of wholesale funding as issues mature Total outstanding: 38 bn 4.7 bn % 2.57% 1.54% Average cost as of 4Q14: 224 bps (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 44

45 Continued reduction in recurrent loan loss provisioning Activity & Results FY14: Provisioning Downward trend in Cost of Risk 1 maintained in 4Q14 Recurrent credit provisioning down 26% yoy In Million Euros 2.98% 2.30% 1.95% 1.86% 1.15% 1.17% 1.08% 1,00% 1.00% average: ~ % 2014 average: ~ Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 2,764 M 2,084 M 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 45

46 Activity & Results FY14: Delivering on guidance 2014: Delivered on our guidance Target: ~5% NII growth NII, in Million Euros +5.1% Target: ~2-3% net fee income growth Net fee income, in Million Euros +3.7% 3,955 vs. 5% target 4,155 1,760 1,320 vs. 2-3% target 1,825 FY2013 FY2014 FY2013 FY2014 Target: ~55% Cost-to-income ratio Recurring cost-to-income ratio, in % -5 pp Target: Gradual cost of risk normalisation Cost of risk, in basis points -86 bps 59.5% vs. ~(5 pp) target 54.4% 186 FY13: 100 FY14: 60 FY2013 FY2014 Dec 13 Dec 14 Normalised level Guidance provided during 1Q14 46

47 2015: Solid foundations for future profit growth Activity & Results FY14: 2015 guidance 2015 Guidance * Main levers NII Fees High single-digit growth Reduced funding costs and stabilising loan book Growth in off-balance sheet products Barclays Spain contribution Recurring Expenses ~ Flat (stand-alone) Strong focus on operational efficiency Early retirements (booked in 4Q14) Asset quality NPL ratio: <8% by YE CoR: ~80 bps by YE 2.7bn real estate sales & rentals Better macro outlook Intensive clean-up of RE-exposure Take losses on sales to accelerate disposals Performing CaixaBank loan book (ex-re) Stable Better macro outlook Growth in Corporate/SME book and consumer lending to offset RE deleveraging (*) Year-end guidance incorporating the impact of the BBSAU acquisition (closing in January 2015),except for recurring expenses and loan book trends 47

48 Stock price evolution reflects improved macro dynamics and robust financials Stock price evolution Share price evolution /01/ /06/ /11/ /04/ /09/ /01/20 31/12/2014 CaixaBank Spanish banks 1 Domestic banks 2 Ibex35 Stock s main indicators 3 Number of shareholders 365, , , , , , , ,465 O-07 D-07 D-08 D-09 D-10 D-11 D-12 D-13 Shareholder base by group In % of share capital as of YE13 Criteria CaixaHolding and board members (3,339M shares) 66% Free float (1,689M shares) 34% PER Dec-16 P/BV Beta Volatility 90 days 51% Institutional M Shares % 49% Retail 820 M Shares (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 23 rd (4) Institutional investors are well diversified geographically: 33% US; 26% UK/Ireland; 22% Spain; 14% Rest of Europe; 5% Rest of the World. 48

49 Strategy [update] 49

50 Strategic Plan Strengthen leadership in retail banking Key strategic initiatives Diversify operations towards corporate banking 15% market share in business volume 35% of loan book (excluding Real Estate developers) geared towards corporate banking (from 29% in 2010) TBD 3 Balance out geographical presence Accelerate growth outside Catalonia and Balearic Islands (to 65% share in business volume, up from 55% in 2010) 4 Develop international strategy Strengthen existing alliances Increase business abroad with existing and new clients 5 Maintain financial strength Pre-emptive management of solvency, liquidity and risk. Core capital B3 8%-9% 6 Improve profitability Targeted ROE in mid-teens in the medium term TBD 7 Increase efficiency and structural flexibility 8 Manage talent 9 Communicate Structural optimisation Leverage new technologies Appraise performance Enhance professional growth opportunities Internal communication External communication to all stakeholders Well positioned to capitalize on an improving cycle 50

51 J-12 A-12 J-12 O-12 J-13 A-13 J-13 O-13 J-14 A-14 J-14 O-14 J-15 The Spanish economy and banking sector are in a recovery mode Macro & Industry backdrop Spanish 10y bond yield premium over Bunds & domestic bank stock index (January 2012 = 100) bps Yield: 7.6% (24 th July 2012) 0,000 20,000 40,000 60, bps Yield: 1.5% 80,000 (30 Jan 2015) 6 quarters of sustained growth (since 3Q2013) 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) Left hand side : Spanish 10-year government bond yield premium over German government debt (Bunds) Right hand side: Spanish domestic bank stocks index (Inverted scale) 100, , ,000 Major restructuring of the banking system 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%) Source: Bloomberg 51

52 Headwinds on the profitability of the Spanish banking sector Macro & Industry backdrop Modest economic growth ahead Spanish annual GDP growth, in % forecast 5 Average : 3.5% 3 Average 14-18: 1.7% e 16e 17e 18e Source: IMF Stabilisation of private sector credit Stock of bank credit to private domestic residents, in Bn 2200 forecast Dec-04 Dec-06 Dec-08 Dec-10 Dec-12 Dec-14 Dec-16 Source: Bank of Spain and la Caixa Research Pressure on profitability 5% 4% 3% 2% 1% 0% Prolonged low rate environment Spanish banking sector NIM and Euribor 12M, in % Source: la Caixa Research Necessary but burdensome regulation 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) forecast NIM (right hand side) 2,0% 1,6% 1,2% 0,8% 0,4% 0,0% Euribor 12M (left hand side) 52

53 + Strategic + Tactical Cyclical & structural levers Levers to bolster profitability 1 Repricing of deposit back book 2 CoR and balance sheet normalisation 3 Scale and acquisitions to drive cost-efficiency 4 Wide-range offering through a single integrated platform 5 Technology-led innovation and business transformation 53

54 Tactical levers Reduced retail funding costs and loan-loss charges support profitability in the current backdrop Deposit re-pricing trends stabilising Time deposits and retail CP - Back vs. front book (bps) Downward trend in Cost of Risk 1 maintained in 4Q Back Front % 2.30% 1.95% 1.86% 1.15% 1.17% 1.08% 1,00% 1.00% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Wholesale funding costs a leading indicator of asset yields bps Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Covered bonds Senior debt (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 54

55 Rightsizing and acquisitions fuel cost efficiency gains Cost efficiency: Rightsizing & Acquisitions Number of branch closures since Significant cost synergies from acquisitions In Million Euros Acquisitions 7,317 2,099-28% 172 openings 5, e 2015e e 680 5,218 Dec'07 pro forma -2,484 closings Dec'14 BCIV+BdV BCIV+BdV 83 BCIV+BdV BBSAU 150 BCIV+BdV BBSAU Employee departures since Size is key to achieve economies of scale HQ staff as % of total employees 2 Acquisitions 38,549-6,975 12,486 26,063 Net departures -19% 31, Net departures 31,200 6% 17% 20% 30% Dec'07 pro forma Jun'14 Dec'14 CaixaBank Acquisition 1 Acquisition 2 Acquisition 3 (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. 55

56 BBSAU Acquisition of Barclays Bank SAU improves competitive position in key segments and regions BBSAU BBSAU: key figures 1 June 2014 % of Combined An affluent segment oriented bank with c. 555,000 customers Assets Net loans 21.6 bn 18.4 bn 6% 9% Private banking Affluent banking Deposits 2 AuM 3 Shareholder funds Branches bn 4.9 bn 1.7 bn 271 5% 8% 7% 5% 4,100 customers 2.6% market share (source: DBK) 178,200 customers 1.7% market share (source: DBK) Customers 4 Employees 555,000 2,446 4% 7% Client AuM account for 33% of retail funds 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 56

57 Insurance and AM capabilities Advisory capabilities become key in a low rate environment Strong and growing insurance and asset management capabilities Volume Savings insurance Pension plans Mutual funds FY14 ( Bn) % Change YTD % % % Outperforming peers over recent years Savings insurance and pension plans 16.4% 17.3% Key competitive advantage: 18.1% 19.7% 100% Ownership of the value chain +86 bps Dec 14 Market shares 20.6% 1 st Better economics Integrated management of client savings No conflicting views with partners TOTAL % Mutual funds +120 bps 2 nd 33% of retail funds Migration of customer funds to offbalance sheet products underscores cross-selling capabilities 14.0% 14.1% 15.3% 12.2% 10.6% Dec 14 Source: Inverco and ICEA 57

58 The insurance and pension plan business is a perfect complement to the banking business A top insurance group 52 Bn 9 M Assets under Management Customers Insurance and pension plans business Sustained increase in Investments & AuMs In Bn ,416 Points of sale. The widest distribution network 2 Dec'13 Mar'14 Jun'14 Sep'14 Dec'14 +10% 3,902 Specialised staff 3 Premiums and contributions 4 5 Segments, providing diversified offering: Life, Pensions, Health, Autos, Households Life/Savings 65% Pension plans contr. 26% #1 Leader in Spanish complementary pension market Life/Risk 9% (1) Circa 4 Million customers in life insurance + circa 5 Million customers in non-life. (2) 5,251 CaixaBank branches 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 31 th 2014 At a glance Competitive stance Balance Sheet Diversification Performance Strategy 58

59 IT: key strategic lever Steady focus and sustained investment in innovation Anticipating the needs of our customers in the digital era Real-time Internal innovation The innovation process The Wall: 15,000 business banking clients Recibox: 800,000 users Multi-channel approach Customer requirements New ways of communication External innovation network Technological transfer Collaboration with external entities to develop new ideas and/or diffuse them within the organisation Technology transfer from 3 rd parties and development of new capacities Security and transparency New contents Main areas of investment 1. Multi-channel strategy and process automation 2. Big Data and advanced analytics 59

60 Big Data 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 60

61 Strong balance sheet enables distribution of earnings to shareholders Profitability levers 1. Repricing of time deposits 2. CoR and balance sheet normalisation Robust solvency 12.3% CET1 15.5% Total capital 5.4% Leverage Ratio BIS 3 FL 3. Scale and acquisitions to drive costefficiency Strong liquidity 56.7 bn of available liquidity 4. Offering a wide range of financial services 5. Boosting productivity & business transformation via technology Improved asset quality NPLs down 21% YTD High coverage (55%) Supporting current dividend policy Data as of 31 st December

62 Dividend policy A gradual transition to cash dividends 2014 Shareholder s Remuneration Sep Dividend / Share Dec Dividend / Share Mar 2015 forecast 0.04 Dividend / Share Jun 2015 forecast 0.04 Dividend / Share 2014 Remuneration Policy 0.18 / Share 4.6% Yield 1 Quarterly scheme Attractive total remuneration programme DIVIDEND/SHARE Choice of payment Progressive dividend distribution in cash (1) As of December 31st

63 [] 63

64 Ratings CaixaBank Credit Rating Long term Short term Outlook Rating of covered bond program Moody s Investors Service 1 Baa3 P-3 stable A1 2 BBB A-2 stable A 3 BBB F2 positive - 4 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. 64

65 Transparency, independence and good governance are key priorities Corporate Governance Institutional investors: Geographical distribution % of total shares owned by institutional investors, Dec-2013 RoW 5% Rest of Europe 14% Board of Directors composition Number of members 2 Cajas 1 1 Other external USA 33% UK/Ireland 26% Spain 22% Total: 820 M shares Proprietary directors 8 2 Executive directors Independent directors 6 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 (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 65

66 Financial statements Balance sheet million Dec. 31, 2013 Dec. 31, 2014 Cash and Central Banks Trading portfolio Available-for-sale financial assets Loans Deposits at credit institutions Customer loans Debt securities Investment portfolio at maturity Non-current assets held for sale Investment portfolio Property and equipment Intangible assets Other assets Total assets Liabilities Trading portfolio Financial liabilities at amortized cost Deposits by credit institutions and Central Banks Customer deposits Marketable debt securities Subordinated debt securities Other financial liabilities Insurance liabilities Provisions Other liabilities Equity Shareholders' equity Profit attributable to the Group Equity adjustments by valuation Total liabilities and equity

67 Financial statements P&L January-December Change million % Financial income (5,5) Financial expenses (4.636) (5.346) (13,3) Net interest income ,1 Dividends ,4 Share of profit (loss) of entities accounted for using the equity method (9,8) Net fees and commissions ,7 Gains on financial assets and exchange rate differences (5,8) Other operating income and expenses (171) (475) (64,0) Gross income ,0 Recurring expenses (3.773) (3.947) (4,4) Extraordinary expenses (839) Pre-impairment income ,5 Recurring pre-impairment income ,0 Impairment losses on financial assets and others (2.579) (4.329) (40,5) Gains/(losses) on disposal of assets and others (386) Pre-tax income 202 (980) Income tax (67,6) Profit for the period ,1 Minority interest (8) Profit attributable to the Group ,3 67

68 Institutional Investors & Analysts Contact We are at your entire disposal for any questions or suggestions you may wish to make. To contact us, please call or write to us at the following address and telephone number: Av. Diagonal, Barcelona