Banco Sabadell

3Q09 Results

22nd October 2009

Disclaimer

Banco Sabadell cautions that this presentation may contain forward looking statements with respect to the business. financial condition. results of operations. strategy. plans and objectives of the Banco Sabadell Group. While these forward looking statements represent our judgement and future expectations concerning the development of our business. a certain number of risks. uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include. but are not limited to. (1) general market. Macroeconomic. governmental. political and regulatory trends. (2) movements in local and international securities markets. currency exchange rate. and interest rates. (3) competitive pressures. (4) technical developments. (5) changes in the financial position or credit worthiness of our customers. obligors and counterparts. These risk factors could adversely affect our business and financial performance published in our past and future filings and reports. including those with the Spanish Securities and Exchange Commission (Comisión Nacional del Mercado de Valores).

Banco Sabadell is not nor can it be held responsible for the usage. valuations. opinions. expectations or decisions which might be adopted by third parties following the publication of this information.

Financial information by business areas is presented according to GAAP as well as internal Banco Sabadell group´s criteria as a result of which each division reflects the true nature of its business. These criteria do not follow any particular regulation and can include forecasts and subjective valuations which could represent substantial differences should another methodology be applied.

The distribution of this presentation in certain jurisdictions may be restricted by law. Recipients of this presentation should inform themselves about and observe such restrictions.

These slides do not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any securities nor shall they or any one of them form the basis of or be relied on in connection with any contract or commitment whatsoever.

22

Agenda

1. 3Q09 Results

2. Commercial activity and liquidity

3. Risk management

4. Optima program

5. Summary

33

9M 2009

YoY (€m) YoY (%)Sep 08 Sep 09 YoY (€m) YoY (%) Adjustments adjusted Adjusted

Net interest Income 1,078.1 1,215.4 137.4 12.7% 137.4 12.7%Equity Method & Dividends 45.4 56.3 10.9 24.1% 10.9 24.1%Commissions 424.3 385.8 -38.5 -9.1% -38.5 -9.1%Trading income & Forex 97.5 279.8 182.3 186.9% -96.8 85.5 87.7%Other operating Results 16.8 6.1 -10.7 -63.7% -10.7 -63.7%

Gross operating income 1,662.0 1,943.5 281.4 16.9% -96.8 184.6 11.1%Operating costs -715.0 -774.2 -59.2 8.3% 52.0 -7.2 1.0%Depreciations -103.1 -104.9 -1.8 1.7% -1.8 1.7%

Pre-provisions income 843.9 1,064.4 220.5 26.1% -44.8 175.7 20.8%Provisions fot credit risk -424.6 -359.6 65.0 -15.3% 65.0 -15.3%Other provisions & impairments -40.2 -230.5 -190.3 473.9% -190.3 -- Gains on sale of assets 25.2 64.9 39.7 157.8% -39.7 0.0 0.0%Taxes & minority interests -70.4 -70.7 -0.3 0.4% -5.0 -5.3 7.6%Disc. transactions 428.4 0.0 -428.4 -100.0% 418.4 -10.0 -2.3%

Attributable net profit 762.2 468.4 -293.7 -38.5% 328.8 35.1 4.6%

44

6.63

1.161.24

2.272.25

7.70

2Q09 3Q09

BIS ratio (%)

Lower Tier I

Core Capital

Tier II

10.0611.19

Strong capital position in absolute terms

55

4%

5%

6%

7%

8%

9%

30% 40% 50% 60% 70% 80% 90% 100%

Ratio de cobertura de la morosidad

Rat

io d

e co

re c

apita

lStrong capital position in relative terms

NPL ratio above system average

System average(NPL coverage)

NPL ratio below system average

System average(core capital)

NOTE: The size of the circle represents the amount of gross loans to customers. BS core capital ratio including convertible bond issue. Data as of most recent information, including last issues announced of the main Spanish banks and saving banks.

NPL coverage ratio

Cor

eC

apita

l

66

Margin evolution starts to show the low interest rate environment …

1,215.41,078.1

Sep-08 Sep-09

+ 12.7 %

Euros in millions

374.8

1,078.11,215.4

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

347.1 363.0 367.9 394.6 418.6 402.3Sep-09

NII 1,215.4

Dividends 11.3

Equity Method 45.0

Commissions 385.8

Trading income 242.2

Forex 37.6

Other op. results 6.1

Gross Op. Income 1,943.5

Personnel exp. -540.7

Administration exp. -233.5

Deprec. & amort. -104.9

Pre-provision Op. Incom 1,064.4

Prov. for NPLs and others -590.1

Gains on sale of assets 64.9

Taxes and minority int. -70.7

Disc. transactions 0.0Attr. Net Profit 468.4

77

1.80% 1.83% 1.79% 1.85%1.98%

2.06%1.95%

1Q8 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

… although partly softened by the hedging strategy …

2.07%2.10%2.02% 2.15%2.41%

2.60%2.46%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Net Interest Margin

Combined customer spread (*)

(*) Combined spread: Asset yield – (cost of customer funds + cost of wholesale funding). In percentage

We are well positioned for the current interest rate environment

88

… and an active liability management that offsets the asset yield trend

2.73%2.81%2.80% 2.84% 2.81%2.72% 2.52%

5.56%6.28%

5.93% 6.06% 6.29%

4.93%4.21%

2.83%3.47%

3.13%

2.21%

3.22%3.48%

1.70%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

We are actively managing the liability side to reduce funding costs

Customer loan yield

Cost of customer funds

Customer spread

99

Commissions reach an inflection point …

43.7

54.7

37.040.8 33.3 34.1 28.629.8

61.5 52.251.2 52.852.1

60.6

40.4 45.338.146.5

48.544.447.9

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

121.5

167.4

127.8

92.5

165.5

135.5

Sep-08 Sep-09

424.3 - 9.1%385.8

138.8 150.8 134.7 133.4 134.9 132.2 118.7

Asset Mgmt1

Services

Lending

Euros in millions 1 Including mutual funds commissions and pension funds and non-life insurance brokerage

Asset Mgmt1

Services

Lending

Sep-09

NII 1,215.4

Dividends 11.3

Equity Method 45.0Commissions 385.8

Trading income 242.2

Forex 37.6

Other op. results 6.1

Gross Op. Income 1,943.5

Personnel exp. -540.7

Administration exp. -233.5

Deprec. & amort. -104.9

Pre-provision Op. Incom 1,064.4

Prov. for NPLs and others -590.1

Gains on sale of assets 64.9

Taxes and minority int. -70.7

Disc. transactions 0.0Attr. Net Profit 468.4

1010

… and show signs of improvement for coming quarters

Euros in millions

Commissions related to late payments

11.2

15.514.4

18.5

13.1

8.7

15.2

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09-1.200

-1.000

-800

-600

-400

-200

0

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Net outflows at BS Asset management

1111

153.6 155.8 160.0 162.7 158.1 157.2 159.6

6.57.2 5.3 10.631.6 23,6

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

475.0469.4

13.8 65.8

Sep-08 Sep-09

483.1 540.7

+ 1.2%

Recurrent Non-recurrent

Euros in millions. * Including Fincom, Tecnocredit and BBVA Miami in 2008.

153.6

+ 11.9%

163.0 166.5 168.0

We continue to take advantage of strong revenues to apply non-recurrent charges

189.7 180.8

+ 0.9%like-for-like *

170.2Sep-09

NII 1,215.4

Dividends 11.3

Equity Method 45.0

Commissions 385.8

Trading income 242.2

Forex 37.6

Other op. results 6.1

Gross Op. Income 1,943.5Personnel exp. -540.7

Administration exp. -233.5

Deprec. & amort. -104.9

Pre-provision Op. Incom 1,064.4

Prov. for NPLs and others -590.1

Gains on sale of assets 64.9

Taxes and minority int. -70.7

Disc. transactions 0.0Attr. Net Profit 468.4

1212

Administrative expenses

78.2 73.7 78.996.1

81.572.2 80.8

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

231.9 233.5

Sep-08 Sep-09

231.9 233.5

+ 0.7%

- 0.3%like-for-like *

Euros in millions. * Including Fincom, BanSabadell Professional and 100% BBVA Miami in 2008.

Sep-09

NII 1,215.4

Dividends 11.3

Equity Method 45.0

Commissions 385.8

Trading income 242.2

Forex 37.6

Other op. results 6.1

Gross Op. Income 1,943.5

Personnel exp. -540.7Administration exp. -233.5

Deprec. & amort. -104.9

Pre-provision Op. Incom 1,064.4

Prov. for NPLs and others -590.1

Gains on sale of assets 64.9

Taxes and minority int. -70.7

Disc. transactions 0.0Attr. Net Profit 468.4

1313

Euros in millions.

Continued extraordinary provisions reflect our conservative approach

We maintain a high coverage ratio of 83.3% Including guarantees the coverage ratio would be 135.5%

Provisions for credit risk (P/L):

Balance sheet provisions:

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Generic 20.2 3.8 -10.1 -12.0 0.0 -129.4 -315.5

NPLs entry 13.2 6.5 55.4 46.1 11.0 16.2 14.5Calendar effect 14.8 37.1 48.6 56.9 80.8 121.7 155.2Extraordinary 0.2 10.1 214.0 85.3 41.9 87.5 258.7

Rest -4.6 3.5 11.9 3.0 8.2 7.3 1.6

Total 43.8 61.0 319.8 179.3 141.9 103.3 114.5

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Generic fund 1,184.2 1,192.0 1,183.7 1,170.4 1,170.4 1,040.1 723.6Specific fund 130.3 166.7 457.5 645.4 786.0 991.0 1,357.1

Total 1,314.5 1,358.6 1,641.3 1,815.8 1,956.4 2,031.1 2,080.7

1414

-129.4

-315.5

109.4 110.7 105.9 148.4 169.7

214.085.3 41.9

87.5

258.7

24.0 -12.0 0.0-10.120.229.328.110.1

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Euros in millions.

Continued improvement of the total provisions buffer

1,183.7 1,170.4 1,170.4 1,040.1723.6

786.0 991.0 1,357.1457.5 645.4

Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

1.641,31.815,8

2.031,11.956,5 2.080,7

Specific

Generic

Extraordinary

Ordinary specific

Generic

Rest

Provisions for credit risk (P/L):

Balance sheet provisions:

1515

Declining trend in the cost of risk

Cost of risk (in bp)

CreditCost of risk

Yearly average: 43bpsNon credit

Cost of risk

9086

2732

93

77 75

Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09Extraordinary provisioning this year will allow a lower cost of risk over the coming quarters

Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

1616

Agenda

1. 3Q09 Results

2. Commercial activity and liquidity

3. Risk management

4. Optima program

5. Summary

1717

Deposit growth confirms customer confidence in BS …

-3,000

-2,000

-1,000

0

1,000

2,000

2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Loans to customers 66,048 64,458+ 2.1%

On-balance sheet customer funds* 35,479 38,309 +8.0%

Positive commercial Gap

Sep-08 Sep-09 Var.

Fix-term deposits 21,040 22,280 +5.9%

€ m

- 2.4%

Loans to customers excluding real estate

* Excluding repos and including preference shares placed in the retail network and convertible bond issue. Euros in millions. 1818

500

700

900

1,100

1,300

1,500

1,700

1,900

1Q 2Q 3Q 4Q

Mortgages

1,250

1,750

2,250

2,750

3,250

3,750

1Q 2Q 3Q 4Q

Loans

150

250

350

450

550

650

750

850

950

1,050

1Q 2Q 3Q 4Q

CrediGlobal

1,300

1,800

2,300

2,800

3,300

3,800

4,300

4,800

5,300

1Q 2Q 3Q 4Q

Credit lines

200820092008

2009

2008

2009

2008

2009

Number of new contracts

… and with a reasonable level of activity in the current environment

1919

0

1,000

2,000

3,000

4,000

5,000

janua

ryfeb

ruar

y

march

april

may june

july

augu

stse

ptembe

roc

tober

nove

mber

dece

mber

Factoring (€ m) Confirming (active contracts)

Market share 10.7% Market share 9.6%

We continue to improve our market share in commercial credit (7.81%)

1,150

1,200

1,250

1,300

1,350

1,400

1,450

janua

ryfeb

ruar

y

march

april

may june

july

augu

stse

ptembe

roc

tober

nove

mber

dece

mber

2008

2009

20082009

… and with a reasonable level of activity in the current environment

2020

Agenda

1. 3Q09 Results

2. Commercial activity and liquidity

3. Risk management

4. Optima program

5. Summary

2121

NPL ratio

Source: Bank of Spain

02468

10

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 Mar-09

Jun-09

Sep-09

System NPLs BS NPLs

* Banco Sabadell forecast

*

*

Continued improvement of gap vs. the rest of the sector

Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

NPL ratio BS 0.62% 0.85% 1.59% 2.35% 2.82% 3.19% 3.47%

NPL ratio system 1.20% 1.70% 2.63% 3.37% 4.27% 4.60% 4.99%

GAP (p.b) 58 85 104 102 145 141 152

2222

Improving the gap between entries andrecoveries

Evolution of entries and recoveries

750.0

806.7

625.4

748.5823.7

531.9480.1

35.1

223.1

532.9

3Q08 4Q08 1Q09 2Q09 3Q09

Entries

Recoveries

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Entries 213.2 244.0 625.4 748.5 806.7 823.7 749.9

Recoveries -59.9 -42.2 -35.1 -223.1 -480.1 -532.9 -531.9

Write-offs -39.4 -24.5 -40.9 0.5 -1.7 -25.4 -9.1

Quarterly change on NPL 113.9 177.3 549.5 525.8 324.8 265.4 208.92323

7%

23%

32%

38%

162

391 42261

89121 110

15

412

20

3T08 4T08 1T09 2T09 3T09

53253348022335

58%

42%

150(**)

The pulling effect explains 87.5% of non-court filingsNote: The ‘pulling effect’ means that all the debt goes into NPL even if the unpaid instalment is only a fraction of the total debt.

Evolution of court and non-court recovery files

Real estaterepossession

Cash

Court file recoveries (9M09)

Non-court file recoveries (9M09)

Guarantees andcommercialdiscount

Cash + reactivation‘pullingeffect’(**)

Court files Non-court files

** Adjusting for August seasonality

Real estaterepossession

Cash + reactivation‘pullingeffect’(**)

Recoveries analysis

2424

Individuals 14%

Companies 61%

Real estate 17%

Self-employed 8%

Individuals 11%

Companies 61%

Real estate 23%

Self-employed 5%

NPL ratio: New entries and recoveries by segments

NPL new entries Recoveries

2525

NPL by segments

Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

Companies 0.35% 0.52% 1.28% 2.02% 2.54% 2.89% 2.97%

SME 0.84% 1.07% 1.37% 2.17% 2.18% 2.77% 3.12%

Small retailers and self-employed 1.04% 1.10% 1.37% 1.68% 2.42% 2.92% 3.59%

Real Estate development 0.42% 0.95% 2.99% 5.35% 7.34% 7.73% 8.05%

Mortgages to individuals 0.47% 0.57% 0.75% 1.12% 1.48% 1.69% 1.99%

Individual others 1.88% 1.98% 2.44% 3.21% 4.24% 4.91% 5.53%

Total 0.62% 0.85% 1.59% 2.35% 2.82% 3.19% 3.47%

2626

NPL by segments

0

50

100

150

200

250

2Q08 3Q08 4Q08 1Q09 2Q09 3Q090

20

40

60

80

100

120

Individuals

TOTAL

SMEs

Real estate (LHS)

Quarterly cost of risk evolution

2727

5.2%

7.4%7.5%

6.7%7.1%

6.6%

7.1%

6.2% 6.1%

4.7% 4.7%4.5%

4.3%

5.8%

6.4%

5.9% 5.9%

5.1%

5.7%

4.4%

4.8%

3.9% 3.8%3.6%

3.2%

Set-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09

Jun-09 Jul-09 Aug-09 Sep-09

System BS

Evolution of non-performing commercial discount

Source system: National Institute of Statistics (INE). 2828

931 1.025 1.1121.025

Dic-08 Mar-09 Jun-09 Sep-09 Dic-09e

Solvia. Real estate assets

Portfolio evolution and writedowns

Euros in millions

Acquisition

Repossession

Sales

Writedowns

Dec-08 Mar-09 Jun-09 Sep-09 Dec-09e

931 1,275 1,442 1,661 1,950

-68-59 -59-129 -193 -230

-43

250460

Significant provisioning effort

617

2929

Agenda

1. 3Q09 Results

2. Commercial activity and liquidity

3. Risk management

4. Optima program

5. Summary

3030

The transformation plan continues to move forward …

Branch network1,44 FTEs* Back-office FTEs* per branch (1,95 dec-07)

572 back-office personnel reduction since the beginning of the program, increasing our commercial capacity

Service centersServices Global Center set up, concentrating headquarters’ activity for the

branch network

3 Regional Administrative Centers open (RAC): Service-related facility rolled out, asset-related facility in its final roll-out stage in Catalunya.

Foreign trade facility streamlined down to 25 operational centers, from 63 previously

* FTE= Full Time Equivalents 3131

36%Efficiency improvement

due to Optima 09

Widespread implementation of digital processing, centralized workflowmanagement system and advanced tracking system have resulted in a 36% efficiency improvement in the businesess where these measures have beenapplied.

Digital processing

Advanced tracking tool

Workflow management system

… and positive impact on efficiency

3232

… and positive impact on efficiency

FTEs*

1.25

1.591.67

2.25

2.00 1.95

1.541.44

2004 2006 2007 2008 1Q09 2Q09 3Q09 2009e

2009 YTD -280 FTE

The operating efficiency program continues to

reduce back office time at the

branch level

*FTE= Full Time Equivalents 3333

1,229

1,2601,257 1,2561,247

1,2301,223

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

9,668

10,015

10,18910,178

9,929

9,615 9,559

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Number of branchesNumber of employees

… and positive impact in efficiency

3434

7,567,86 7,64

6,95 6,90

7,667,827,657,317,43

6,736,63

6,216,53

6,80 6,737,09 7,24 7,08 7,00

2002 2003 2004 2005 2006 2007 2008 1T09 2T09 3T09

Grupo Banco Sabadell Mercado

Service quality and awards

Ranking in retail banking network independent quality surveys2

Renewal of the Global Award of

European Excellence

Source: 1 Bank of Spain, 4Q08 Bulletin 2 STIGA, “RCB Objective Quality in Retail Banking Networks” 2Q09.

Ranking in service quality 1

The only Spanish financial institution with a global ISO

9001 quality certificate

3535

Agenda

1. 3Q09 Results

2. Commercial activity and liquidity

3. Risk management

4. Optima program

5. Summary

3636

Summary

Focus on active margin management policies

An inflexion point in fee income with a positive outlook

Excellent cost management performance

Conservative provisioning / asset quality under control

We continue to manage our solid capital base

3737

El valor de la confianza