Banco Mare Nostrum First Half September 2014

Transcription

1 Banco Mare Nostrum First Half 2014 September 2014

2 1. Key BMN highlights 2. Results 3. Commercial activity 4. Solvency and risk management 5. Appendix

3 Key BMN highlights A reference retail and SMEs banking group, with strong positions in some of the most populous provinces in Spain, which are expected to be early beneficiaries of the Spanish economic recovery 6 5 Sound funding and liquidity positions Comfortable liquidity position Improvement of the LTD ratio, from 130% in December 2012 to below 103% in June 2014 BMN has reduced its wholesale funding by 22% from December 2012, including a reduction of 27% in ECB deposits Strong profitability potential Given restructuring and provisioning carried out, and given a resilient NIM, BMN expects to generate healthy organic capital going forward Net interest income in a positive trend thanks to client margin improvement Additionally room for growing recurring revenues as a result of the focus on high value-added products (insurance, pension plans) for individuals and SMEs 1 4 Leading regional franchise Financial entity of reference in its regions of origin c. 46.5bn assets as of June 2014 c.800 branches and c4,200 FTEs target Totally dominant market share in three provinces (25% + deposits market share) Leading efficiency after restructuring Well ahead of branches and workforce restructuring plan: BMN has closed 96% of branches that should be closed by end Dec 2014 Workforce agreement to reduce 900 employees already closed with relevant trade unions Efficiency gains showing in 2014, with efficiency ex-nti at 48% 2 3 Sound capital position Strong capital position under Basel 3, with a CET1 BIS 3 FL of 9.5% as of June 2014 New regulation related to DTAs has significantly reinforced BMN s capital position, eliminating uncertainties Low risk assets BMN has transferred about 95% of its real estate exposure to the bad bank (SAREB). This results in one of the lowest real estate exposures in Spain (2.3% of gross loans) Remaining exposures are low risk mortgages and SME loans mainly NPL ratio of 13.8% as of June 2014 During 1H 2014, BMN continued provisioning its exposure ( m 327 additional provisions) 3

4 1 Leading regional franchise Retail branches network June 2014 BMN Branches Balearic Islands Ranking > 20 Branches Branches < 10 Branches Granada Market share (Branches) (1) 1 BMN 28% 2 Peer 1 13% 3 Peer 2 5% Total: 818 branches Ranking Ranking Market share (Branches) (1) 1 Peer 1 23% 2 BMN 20% 3 Peer 2 7% Murcia Market share (Branches) (1) 1 BMN 20% 2 Peer 1 16% 3 Peer 2 14% Province Deposits market share Dic 13 (2) Deposits market share Mar 14 (2) Loans market share Mar 14 (2) Granada 34.9% 34.7% 19.3% Murcia 32.1% 32.9% 18.3% Balearic Islands 24.0% 24.3% 16.0% Retail holders of subordinated liabilities were not subjet to burden sharing, which has contributed to the preservation of BMN Franchise Consolidation of deposits market share over 1Q 2014, with improvement in Murcia and the Balearic Islands Source: Management Information. (1) Figures as of June (2) Figures excluding non residents & public sector. 4

5 2 Sound capital position. Strong 0.6% organic growth during 1H 2014 New regulation introducing the monetisation of unused DTAs when their lifespan has expired, has meant an important improvement for BMN s capital quality position ( 2.0bn monetizable DTAs as of December 2013) After significant organic generation in the first half of 2014, BMN widely covers BIS III Capital Requirements, with 520m (250bps) excess over regulatory requirements (Basel 3 fully loaded) (%) June 2014 BIS 3 Common Equity Regulatory Phased in 10.0% Risk Weighted Assets bn (Phased in) / 20.8bn (Fully loaded) vs Credit Portfolio: 25.0bn Proforma CT1 EBA Dec-12 (1) Organic Generation BIS 2.5 Dec-13 BIS 3 Deductions & RWA Increase BIS 3 CET 1 FL 01/01/2014 Organic Generation BIS 3 CET 1 FL June 2014 BIS 3 CET 1 Requirements FL Regulatory Capital Excess Source: Consolidated accounts as of December 31, 2013 and June 30, 2014 (1) Includes recapitalization process and Catalonia & Aragon business unit sale and transfer of RE Assets to SAREB. 5

6 3 Low risk assets BMN has one of the lowest Real Estate exposures in Spain % Gross real estate developers loans over total gross exposure (1) (June 2014) Peer % Peer 4 Peer % 11.9% Peer 7 Peer 8 Peer 3 8.2% 9.5% 9.3% Peer % Peer 9 3.6% BMN Peer 2 Peer 1 Peer % 2.0% 1.6% 1.3% Source: BMN s Management Information and public consolidated accounts (1) Spanish domestic banks gross real estate exposure. Figures latest available reported. Peers (sorted alphabetically): Abanca, Banco Popular, Banco Sabadell, Bankia, Bankinter, Caixabank, Cataluya Bank, Ibercaja Banco, Kutxabank, Liberbank, Unicaja Banco. 6

7 Cost to income ratio net of NTI (%) 4 Leading efficiency after restructuring Workforce reduction and branch closures has enabled BMN to achieve an efficiency ratio below the sector average Costs over Average total assets & Cost to income ratio net of Net trading income (1) (June 2014; %) Peer 5 Peer Peer 2 Peer 8 Peer 6 Peer 3 Peer Peer 4 Peer 7 Peer 5 Peer 11 Peer 9 1, , , ,80 Operating cost over average assets (%) 0, Source: BMN s Management Information and public consolidated figures. (1) Cost to income ratio calculated as general expenses and amortizations over gross margin net of NTI Peers (sorted alphabetically) Abanca, Banco Popular, Banco Sabadell, Bankia, Bankinter, Caixabank, Cataluya Bank, Ibercaja Banco, Kutxabank, Liberbank, Unicaja Banco. 7

8 5 Strong recurrent profitability Thanks to the commercial and restructuring efforts undertaken, BMN has one of the highest recurrent profit generation capacities within the Spanish financial system Recurrent income generation over Average total asset (1) (June 2014,%) BMN Peer 1 Peer 2 Peer 6 Peer 3 Peer 4 Peer 7 Peer 8 Peer 5 Peer 10 Peer 11 Peer 9 Source: BMN s Management Information and public consolidated figures (1) Recurrent income generation calculated as (Net interest margin + dividends + net fees operating expenses) / ATAs (%), as of June Peers (sorted alphabetically): Abanca, Banco Popular, Banco Sabadell, Bankia, Bankinter, Caixabank, Cataluya Bank, Ibercaja Banco, Kutxabank, Liberbank, Unicaja Banco. 8

9 6 Sound funding and liquidity position The transfer of assets to SAREB, the sale of the Cataluña and Aragon branch network and the deleveraging process have allowed BMN to reduce the LTD ratio below 103% LTD ratio stable during the quarter below 103% LTD ratio (1) Deposits evolution -27 p.p. 31,017 22,832 23,095 22,951 23,299 23, % 113.3% 111.3% 108.6% 102.6% 102.5% ex Sabadell and Sareb transactions 1H Q2014 1H2014 Deposits mix ex Sabadell and Sareb transactions 1H Q H % 59% 58% 57% 38% 37% 37% 37% 4% 4% 5% 6% (1) Calculated as Net Loans / Deposits excluding ICO 1H Q H 2014 General Government Sight Deposits Term Deposits Source: Public consolidated annual accounts as of December 2012 and 2013 and internal data 9

10 1. Key BMN highlights 2. Results 3. Commercial activity 4. Solvency and risk management 5. Appendix

11 Improving recurrent income generation and efficiency ex NTI ( m) Recurrent income generation ex NTI (1) Efficiency ex NTI Cost to Income (2) % % 62% -22% 48% 1H2013 2H2013 1H2014 1H2013 2H2013 1H2014 Source: BMN s Management Information and public consolidated figures (1) Recurrent income generation calculated as (Net interest margin + dividends + net fees operating expenses) (2) Cost to income ratio calculated as general expenses and amortizations over gross margin net of NTI 11

12 Increase in recurring results (As % of ATAs) Net interest income margin Net fees & commissions 1.18% 1.16% 1.23% 0.44% 0.37% 0.46% 1H2013 2H2013 1H2014 NIM increase reflect decreasing funding costs and higher rates of new lending business 1H2013 2H2013 1H2014 Net fees & commissions continue to be a significant share of BMN revenues Net trading income General expenses 0.86% 0.76% 0.71% 0.97% 0.96% 0.83% 1H2013 2H2013 1H2014 Results reliance on NTI is being reduced 1H2013 2H2013 1H2014 Decreasing general expenses positions BMN close to reach its optimal efficiency level Source: Consolidated annual accounts as of 31- Dec-2013 and consolidated semiannual accounts as of 30 June 2013 and 30 June

13 Summary P&L m % over ATA 1 3Q2013 4Q2013 1Q2014 2Q2014 Net interest income H2013 1H Q2013 4Q2013 1Q2014 2Q Dividends Net fees and commissions Net trading income Other Gross income General and administrative expenses Pre provision profits (PPP) Provisions and Impairment losses Other results Net operating income Taxes Net income Cost to income (1) 43.1% 40.1% 39.9% 29.2% 41.5% 34.1% Source: Consolidated annual accounts as of 31-Dec-2013 and management accounts for quarterly figures. (1) Cost to income ratio calculated as general expenses and amortizations over gross margin 13

14 1 Net Interest Income has started to recover and should continue to benefit from a lower cost of funding Client margin improved 15 bp over 2Q 2014 thanks to the lower cost funding, currently subject to a re-pricing strategy that should benefit coming quarters net interest income ( m) 196 Net Interest Income Quarterly Evolution Transfer of assets to SAREB in Feb 2013 and sale of Business and Network in Catalonia and Aragon in May % 3.87% 3.79% 3.72% Credit yield vs deposits costs 3.56% 3.42% 3.27% 3.21% 3.25% 3.20% 3.17% % % 2.00% 2.02% 1.97% 1.80% 1.87% 1.77% 1.75% 1.87% 1,85% 1.64% 1.63% 1.69% 1.57% 1.63% 1.58% Jan-12 Mar-12 Jun-12 Sep-12 Dec-12 Dec-12 (1) 1.79% 1.89% 2.04% 1.31% 1.13% 1.46% Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Loans yield Deposit costs Margin Term deposits costs evolution 2.52% 2.44% 2.49% 2.43% 2.38% 2.30% 2.15% 2.10% 2.17% 1.98% 1.98% 1.90% 1.81% 1.79% 1.76% 2.06% 2.01% 1.94% 1.84% 1.77% 1.69% 1.62% 1.41% 1.35% 1.29% 1.19% 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 Jun- 13 Jul-13 Aug- 13 Sep- 13 Oct- 13 Nov- 13 Average cost Dec- 13 Jan- 14 Feb- 14 Mar- 14 New deposits Apr- 14 May- 14 Jun- 14 Source: Management Information. Consolidated semi-annual accounts as of June, 2014 (1) Excl. Sabadell and SAREB Transactions 14

15 2 Fees received increased by 7.7% in 2Q 2014, compared to 1Q 2014, consolidating the growing trend started in 1Q 2014 ( m) Fees received Transfer of assets to SAREB in Feb 2013 and sale of Business and Network in Catalonia and Aragon in May Fees breakdown ( m) 2H H2014 Receipts and payment services No-banking fees Contingent risks & commitments FX trades & securities Other fees Fees received Fees paid Net fees Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 Source: Consolidated annual accounts as of December 31, Unaudited consolidated accounts as of June,

16 , Materialization of synergies and restructuring completed During 1H2014, BMN has reduced its operating expenses by 33% over 1H2013 to EUR 196 million, reduction of 20% over 2H2013. Reduction has been driven by the completion of the restructuring process ( m) 160m General expenses quarterly evolution 132m 122m 122m 7 104m m June Leading to highly efficient platform Operating expenses (% on Average Total Assets) Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 Personnel Expenses G&A Depreciation 0.69 SG&A ( m) H2013 2H H2014 Personnel expenses General and administrative expenses Depreciation Total Peer 1 BMN Peer 5 Peer 3 Peer 6 Peer 4 Peer 2 Personnel General and admin Depreciation Source: Consolidated annual accounts as of December 31, 2012 and Consolidated semi-annual accounts as of June, 2014 Note: Peer group includes Bankia, Bankinter, Caixabank, Liberbank, Popular and Sabadell 16

17 1. Key BMN highlights 2. Results 3. Commercial activity 4. Solvency and risk management 5. Appendix

18 Approaching the turning point in loan book growth ( m) Dec 2012 Jun 2013 Dec 2013 Mar 2014 Jun 2014 TOTAL ASSETS 63,380 52,893 47,518 47,715 46,465 Loans to customers 28,247 (1) 27,509 26,215 25,060 25,000 Foreclosed assets 1, Customer deposits 22,832 (1) 23,095 22,951 23,299 23,325 Wholesale funding (2) 18,950 (1) 17,625 14,997 15,011 14,771 LTD (Loans to customers ICO loans) / Customer Deposits 113.3% (1) 111.3% 108.6% 102.6% 102.5% Source: Public consolidated annual accounts as of December 31, 2012 and 2013 and internal data as of March, 2014 and half-yearly accounts as of June, 2014 (1) Figures as of December 2012 exclude assets and liabilities transferred to SAREB and the Catalonia and Aragon business sold in (2) Excludes interbank deposits 18

19 New credit rises 3% during the quarter. In SME s new credit grows 18%, taking 52% of new lending BMN has significantly reduced its credit portfolio, however deleveraging has been carried out in non-core regions and unattractive credit segments. A significant part has been achieved by the sale of Catalonia and Aragon business: 9.8bn 1H 2014 New lending ( m) 1H 2014 New lending breakdown ( m) Delta (%) Distribution (%) New lending New rates Individual mortgages % Individual others % % 100% 14% 29% SME & Corporates with real guarantee % % 52% SME & Corporate others % Other % % 19% Public Sector % 1Q Q 2014 Total 1, % Individual mortgages Individual others SME & Corporates with real guarantee SME & Corporate others Other Public Sector Source: Management information 19

20 Comfortable liquidity position Sound liquidity position, with commercial activity almost fully funded with retail deposits and wholesale funds invested in highly liquid assets Wholesale assets breakdown ( m) Balance sheet breakdown ( m) (as of June 2014) 46,465 46,465 1, Cash and deposits Repo Subsidiaries Wholesale Assets 14,216 14,700 Wholesale Funding 5,647 SAREB Bond Retained Covered Bonds 2,394 2,394 Retained Covered bonds 731 ESM Bond 25,000 23,325 Customer Deposits 5,566 ALCO Fixed Income portfolio Net Loans Other assets Deferred Tax Assets 2,591 2,265 1,081 2,793 2,172 ICO Other liabilities Equity Wholesale Assets Assets Liabilities and Equity Source: Unaudited consolidated accounts as of June 30, 2014 and BMN management information. 20

21 , Sound wholesale funding structure Total disposable liquid assets amounts 19% of total assets. ECB funding was reduced by 500m 2Q 2014, and 200m in July 2014 Wholesale Funding Breakdown (1) (as of June 2014) Wholesale Funding Maturities (ex-repo and ECB, as of June 2014) (6%) (5%) 512 (3%) 14,771m (6%) 5,400 (37%) ,260 (42%) ECB Covered bond SPGB repo ESM bond repo Uncovered debt RMBS (Net) >2018 Covered bond RMBS Unsecured bond Governments guaranteed bonds Liquidity Buffer in Cash Terms Dec12 Jun13 Sep13 Dec13 Mar14 Jun14 Total liquid assets (ex repo) 12,507 14,993 16,274 14,330 15,545 14,151 ECB 7,400 6,400 6,400 5,900 5,900 5,400 Total disposable liquid assets 5,107 8,592 9,875 8,430 9,645 8,751 % over total assets 8% 16% 19% 18% 20% 19% (1) Excludes interbank deposits Source: Unaudited consolidated accounts as of June 30, 2014 and BMN management information. 21

22 Mutual and pension funds continue showing a growing trend in terms of assets under management Mutual funds (AuM; m) ( 1 ) Pension funds (AuM; m) Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 ( 1 ) Includes SICAVs Source: Management information 22

23 1. Key BMN highlights 2. Results 3. Commercial activity 4. Solvency and risk management 5. Appendix

24 Loan portfolio structure focused on low risk mortgages and SME & mortgages loans Loan Portfolio (gross exposure) Real Estate Breakdown ( m) 2% Others 115 Total Exposure: 26.1bn SMEs&Corporates Loan Portfolio Breakdown Land 152 7, % 28% SME's & Corporates secured Buildings % SME's & Corporates unsecured Individuals Loan Portfolio Breakdown 7% 66% Individuals mortgages 17,100 X% Percentage of total exposures 93% Individuals unsecured Public sector Real estate Individuals Other construction SMEs & corporates Credit portfolio is currently focused on SME s and Residential Mortgages In 2014 a gradual transition from credit portfolio deleveraging to modest growth with focus on SMEs is foreseen. This growth expects to be accompanied by residential mortgages credit volume stabilization Source: Management Information. 24

25 Asset quality has been reinforced BMN has executed a significant provisioning effort during 2013 and 1H2014, amounting to 735m and 327m respectively, including non-recurrent provisions linked to restructuring commitments and refinanced loans Non Performing Coverage (%) Non Performing Loans (Gross exposure) SECURED Individual primary residence mortgages m % Gross Credit Jun-14 Dec-13 Jun-13 NPL Cover. NPL Cover. NPL Cover. 13, Q H 2014 NPL Ratio vs sector s average Individual other mortgages SMEs & Corporates with real guarantees 2, , Jun Mar % 13.8% Jun 2014 Average financial 13.8% sector s NPL (1) : 13.4% Real Estate UNSECURED Individual other 1, SMEs & Corporates rest 2, Other construction First quarter of stabilization of NPL ratio after previous increase shows that the pick has been reached Public sector TOTAL 26, Source: Management Information. Bank of Spain. 25

26 Foreclosed assets exposure is limited to 1.3% of total assets due to BMN s transfer of assets to SAREB Foreclosed assets and coverage (1) June-2014 (net value, %) Coverage of Foreclosed assets vs gross assets (1) (%) Others % 61% RE exposure transferred to SAREB Land % Very low and highly covered land exposure 40% 39% 38% Buildings under construction % Finished buildings % Total Foreclosed: 749m 38.12% Total Provisions: 462m Dec-12 (2) Dec-13 Mar-14 Jun-14 Source: Consolidated annual accounts as of December 31, and 2013 and internal data as of June 2014 (1) Including 204 million value corrections due to financial assets impairments applied at foreclosure. Over gross assets (2) Includes provisions build up for SAREB sale. 26

27 Strong organic capital generation was achieved during 1H 2014 Phased In (%) Fully Loaded (%) +0.5 p.p p.p Dec-2013 Jun-2014 Dec-2013 Jun-2014 Capital 2,019 2,053 1,904 1,970 RWAs 21,334 20,471 21,500 20,791 27

28 1. Key BMN highlights 2. Results 3. Commercial activity 4. Solvency and risk management 5. Appendix

29 BMN has successfully adapted to changing conditions after a deep restructuring process BMN s creation Deep and completed restructuring effort New phase Jun 2010: BMN creation Jan 2011: Caja s businesses and assets transferred to BMN Feb 2013: FROB s Prefs conversion into shares Mandatory Convertible Bonds conversion into shares May 2013: Catalonia & Aragon Business sold ( 9.8bn assets & 9.6bn liabilities transferred) Jun 2014: c.96%(1) of the restructuring plan already achieved Feb 2013: Real estate assets sold to SAREB ( 5.8bn net assets transferred) Dec 2010: FROB subscribes contingent convertible prefs ( 915m) Nov 2011: Mandatory convertible bonds ( 242m) subscribed by professional investors Dec 2012: Restructuring Plan Approval Jun 2013: Non-Retail Burden sharing execution ( 309m core capital conversion) Mar 2013: FROB subscribes 730m equity Source: Management Information. (1) x% of planned branches closures. 29

30 with a significant change in its shareholder structure BMN s shareholders distribution changed considerably during 2013, due to the recapitalization process BMN considers that becoming a publicly traded entity is an essential pillar of its strategy as this process will: Enable the Company to access the capital markets Increase the visibility of the entity Allow for the FROB and other investors to carry out an orderly divestment process It may be appropriate to undertake the transaction before 2H2015, therefore the Company will monitor market conditions, to be ready to act within that timeframe. BMN s shareholder structure as of December 2012 (voting rights) BMN s shareholder structure as of June % 15.5% 19.5% 74.9% 65.0% Founding Cajas (1) Others (2) (2) Founding Cajas Others FROB Before FROB prefs conversion and burden sharing Current shareholders composition June 2014 Total Equity: 2,172m Total number of shares: 1,613,653,104 Book Value per share: 1.35eur/share Intangible assets: 97m Source: Management Information (1) Cajamurcia, Caja Granada, Caixa Penedès and Sa Nostra (2) Institutional and professional investors that converted MCNs and T1 and T2 instruments into common stock as part of the restructuring carried out 30

31 BMN has significantly reduced its balance sheet size, however deleveraging has been carried out in non-core regions, unattractive credit segments and less profitable assets Total assets fell c.27% since 2012, due to the important transformation of the balance executed over the year 2013 Total assets ( m) -9,779 Selloff of Cataluña and Aragon business to Banco Sabadell: 9.8bn assets 9.6bn liabilities 462 branches Operation closed on May 31, 2013 On 28 th February 2013, BMN sold 5.8bn real estate related assets to SAREB getting in exchange Government guaranteed bonds valued at 5.8bn -1,918 63,380-5,820 +5,820-2,032-1, % 53,601 47,518 46,465 Total assets Dec-12 Catalonia business sale SAREB sale SAREB bond Total assets Dec-12(1) Reduction wholesale assets Loan reduction Retained covered bond prepayments Other Total assets Dec-13 Total assets Jun-14 (1) Excl. Sabadell and SAREB transactions 31

32 Branches and employee restructuring almost completed Deep restructuring with branches and FTEs to have fallen 50% and 48% as of June 2014 respectively, since the creation of BMN. BMN has closed or sold as of June 2014 c.96% of the total branches it committed to close. 688 employees have accepted offers in accordance with the workforce agreement to reduce 900 employees already closed with relevant trade unions Evolution of BMN s commercial network Evolution of BMN s workforce (FTE) 1,640 8,643 1,342 50% 52% 7,040 48% 52% (462) (62) (23) 795 (2.019) (320) 4,701 4,456 (267) 4,189 Dec-10 Dec-12 Sale of Catalonia and Aragon Network Other Dec-13 Jun-14 Rest. Plan 2014 Target Dec-10 Dec-12 Sale of Catalonia and Aragon network Other Dec-13 Jun-14 Rest. Plan 2014 Target 32

33 In 2013 and 2014, BMN has successfully completed six significant transactions with best in class operators Milestone Description NPL Portfolio Sold an unsecured NPL portfolio of 1.3bn, to Marathon Asset Management. Deal closed on June 28th, 2013 Asset management (BMN Gestión de Activos) Recovery business (Serveis Agrupats) Sold asset management business to Banco Madrid, subsidiary of Banca Privada de Andorra. Deal signed on November 18th, 2013 Sold recovery (friendly phase) business Serveis Agrupats de Contact Center, to Lindorff Deal closed on December 30th, 2013 Processing Agency (Giatssa) Real Estate Servicing Sold processing agency business, Giatssa to Maretra Deal closed on December 31st, 2013 Sold the Real Estate assets management platform to Aktua Soluciones Financieras Holdings: 100% of the company that manages all Real Estate assets (from both: BMN and SAREB), Outsourcing of the management of the Real Estate loans sold to SAREB. Deal closed on March 31st, 2014 NPL Portfolio Sold an unsecured NPL portfolio of m 78 to Elliott MgM Deal closed on June 30th,

34 Contact BMN Funding, ALM and Investor Relations Paseo de Recoletos, 17 4th floor Madrid (SPAIN) Isabel Alonso Head of Funding, ALM and Investor Relations Karl W. Klobuznik Head of Investor Relations Andrea Salgueiro José M. Cano DISCLAIMER Banco Mare Nostrum, S.A. 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 or financial accretion are not intended to mean that future performance, 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 not 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. 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 Banco Mare Nostrum, S.A. 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, Banco Mare Nostrum, S.A. 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. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, and may be incomplete or condensed. 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 issuing, 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. In making this presentation available, Banco Mare Nostrum, S.A. gives no advice and makes no recommendation to buy, sell or otherwise deal in 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 Banco Mare Nostrum, S.A. 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 Banco Mare Nostrum, S.A. 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.

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