caixabank - the leading force in spanish retail banking · 4/23/2014 · caixabank - the leading...

CaixaBank - the leading force in Spanish retail banking November 2014 Corporate Presentation

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 9M 2014 has been prepared mainly on the basis of estimates.

2

3

CaixaBank

1. Overview p. 3

2. The leading force in Spanish retail banking p. 7

3. International banking p. 22

4. Investment diversification p. 26

5. Solid balance sheet p. 28

6. 9M14 Activity and results p. 42

7. Strategy & Macro outlook p. 55

8. Final remarks p. 58

9. Appendices p. 60

Acquisition

4

CaixaBank aiming for long term sustainable growth

2007 2014 2013

Strategic Plan 2007 - 2010 Strategic Plan 2011 - 2014

• Internationalization • Criteria IPO

• Growth in retail banking market share • Rationalising cost base

“Making the difference”

2010/11 2011

“la Caixa” Group Reorganisation

• Capital optimization

Leadership in Spanish retail Banking

International banking: diversification

IPO: access to stock market

Reaching 15% market share in Spain

Reinforcing balance sheet strength

Value creation: financial & social

IPO Starts trading on the stock market

Acquisitions Acquisitions

2012

“Leadership in retail banking”

2008

1. Overview

Transformation of “la Caixa” in

a banking foundation1

(1) According to the proposal of “la Caixa” Board of Directors that was presented at the General Assembly on May 22nd

Acquisition

Barclays Bank SAU

“la Caixa” Group reorganization

5

Prior to 2007

Charitable Trust

Legacy Real Estate assets

~ 56%1

Retail Banking & Insurance

Industrial Portfolio

Repsol + Telefonica

100%

International

Banking portfolio

Welfare

Projects

Banking Business

Insurance Business

Industrial & Financial stakes

Current structure (CaixaBank began operations on 1st of July 2011)

100%

(1) Including the conversion of the exchange of Bonds issued by “la Caixa” (2) As of end of September 2014 (3) Proposal approved by the Board of Directors of “la Caixa” that was presented at “la Caixa” Annual General Assembly scheduled for May 22, 2014

1. Overview

BV2: €25.3 bn

New structure3

Legacy Real Estate assets

~ 56%1

Retail Banking & Insurance

Industrial Portfolio

Repsol + Telefonica

International

Banking portfolio

Banking

Foundation

100%

At a glance

6

1. Overview

The leading retail franchise in Spain; listed since 1st July 2011

Competitive position reinforced by acquisitions (BCIV, BdV and BBSAU (closing pending )

Loans: €194.4 bn

Funds: €307.3 bn

13.5 million customers serviced by a segmented business model

More than 1 out of 5 Spaniards have CaixaBank as their main banking relationship

Multi-channel platform: branches (5,685); ATMs (9,659); leader in online and mobile banking

Excellence in customer service and highly-rated brand

Coverage ratio of 58%

Liquidity at €61.2 bn

LTD ratio at 102%

Solid capital base: CET1 B3 FL at 12.7%. CET B3 “phase-in” at 13.1%

A flagship institution

Ranked 1st in retail banking in Spain

As of September 2014

Robust financial metrics

7

CaixaBank

1. Overview

2. The leading force in Spanish retail banking

3. International banking

4. Investment diversification

5. Solid balance sheet

6. 9M14 Activity and results

7. Strategy & Macro outlook

8. Final remarks

9. Appendices

The leading retail franchise in Spain

1

Segmented business model sustained by high quality growth

Retail banking (the main pillar)

SME Banking

Business Banking

Corporate Banking

Affluent Banking

Private Banking

Wealth Banking

0.5

10 200

9

0.1

Individuals (assets managed range, million €)

Companies (turnover range, million €)

13.5 million customers

A specialized network (2008)

Specialized managers (2009)

Business volume breakdown1:

As of September 2014

(1) Loans + customer funds. Excludes RE developers and public institutions (2) Including Wealth Banking

8


47%

23%

11%

3% 6%

9%

Private Banking2

Affluent Banking

SME Banking

Retail Banking

Corporate Banking

Business Banking

2006 2014 Closest peer

9

Focused on success in critical retail metrics

20.3%

Sustained track record of reinforcing customer loyalty and

Capturing income flows of our customers to enhance share of wallet

24.1% as primary banking entity

2,866,086 payroll deposits

1,759,167 pension deposits

Customer penetration

1st

Latest available information Source: FRS Inmark (1) Includes BBSAU

Direct deposit of salaries

Direct deposit of pensions

1st 1st

15.1% 15.7% 15.9% 20.0% 21.6% 23.0%

09 10 11 12 13 14

CABK

12.8% 13.6% 13.8% 19.5%

19.9% 20.0%

09 10 11 12 13 14

CABK


28.2%

17.9%

Closest peer Closest peer

16.6% 13.0%

1

Compte de Resultats Recurrent del Grup “la Caixa” Segmentation is key to better serving client needs

10

Affluent Banking Private Banking1

1,261 Specialised staff

€85.2bn Customer funds

21.7% Customer penetration

1st (DBK April 2014)

34 Specialised centres

466 Specialised staff

€41.4bn Customer funds

13.0%

1st (DBK April 2014)

613 Specialised staff

Loans1

SME Banking Business and Corporate Banking

€7.5bn

41.7%

1st (FRS Inmark Oct-2012)

17.9% Factoring & confirming (RK: 2nd)

Loans1 €35.6bn

88

1,229 Specialised staff



Specialised centres

Note: Data as of September 2014 (1) Excluding loans to developers


11

Market shares in key retail products have increased throughout the crisis

(1) Other resident sectors according to Bank of Spain (2) Includes PPIs +PPAs Latest available information Source: INVERCO, ICEA and Bank of Spain

10.1% 10.1% 10.3%

13.2% 14.4% 14.8%

09 10 11 12 13 14

9.9% 9.3% 9.3%

12.9% 14.0% 14.3%

09 10 11 12 13 14

11.3% 11.8% 12.3%

14.4% 15.6% 16.2%

09 10 11 12 13 14

6.9% 8.5%

10.6% 12.2%

14.0% 14.1% 14.3%

08 09 10 11 12 13 14

14.3% 15.1% 16.1% 16.9% 18.7% 19.2%

09 10 11 12 13 14

13.8% 15.9% 17.4%

19.1% 21.1% 21.3%

09 10 11 12 13 14

2nd 2nd

2nd 2nd

1st 1st

Total deposits1 Time deposits

Demand deposits Mutual Funds

Pension Plans2 Life/savings insurance

2nd

10.5% 11.0% 11.1%

14.9% 15.8% 15.8%

09 10 11 12 13 14

8.9% 9.5% 10.4%

14.6% 14.4% 13.8%

09 10 11 12 13 14

11.6% 13.3%

15.2% 18.2% 17.6% 17.9%

09 10 11 12 13 14

12.7% 13.0% 14.0%

15.2% 17.0%

17.8%

09 10 11 12 13 14

9.4%

14.2% 17.1%

19.8% 22.9%

22.3%

09 10 11 12 13 14

1st

3rd

Total loans1 Mortgages

Commercial loans Factoring & Confirming

Foreign trade- imports Foreign trade - exports

Credit market shares Customer funds market shares


10.0% 10.6% 10.6%

14.5% 15.0% 15.0%

09 10 11 12 13 14

1st

Recent acquisitions have strengthened regional footprint and market leadership

Caixa Girona merger

Closing: January 2011

Final IT integration: December 2010

Acquisition of Bankpime’s business

Closing: February 2012

Final IT integration: February 2012

Acquisition of Banca Cívica

Closing: August 2012

Final IT integration: April 2013

• 4 sequential integrations completed

Acquisition of Banco de Valencia

Closing: February 2013

Final IT integration: July 2013


4%

6%

6%

7%

9%

14%

7%

10%

Castellón

Valencia

Alicante

Murcia

Market share in core regions by business volume1

3%

9%

5%

10%

31%

37%

35%

26%

Burgos

Tenerife

Navarra

Andalucía Occ.

2011 June 2014

BCIV and BdV add significant presence in their core regions

(1) Market shares as of June 2014 include loans and deposits. Source: Bank of Spain

Acquisition of Barclays Bank SAU

Expected closing: Dec’14 / Jan’15

Expected final IT integration: 2Q15 España

12

http://www.etea.com/c/document_library/get_file?uuid=619b514a-3cb1-43da-8183-e7f2df5708ff&groupId=27583

Client AuM account for 33% of retail funds

Acquisition of Barclays Bank SAU improves competitive position in key segments and regions

13

BBSAU: key figures 1

June 2014

Assets

Net loans

Deposits 2

AuM 3

Shareholder funds

Branches 1

Customers 4

Employees

€21.6 bn

€18.4 bn

€9.9 bn

€4.9 bn

€1.7 bn

271

≈555,000

2,446

(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

6%

9%

5%

8%

7%

5%

4%

7%

% of Combined

Acquisition for cash consideration of €800 M; closing expected by 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

≈ 4,100 customers

2.6% market share (source: DBK)

Private banking Affluent banking

≈ 178,200 customers

1.7% market share (source: DBK)

An affluent segment oriented bank with c. 555.000 customers

Transaction highlights


Effective delivery of cost synergies and restructuring actions

(1) Includes headcount and branches of Morgan Stanley Private Banking, Caixa Girona, Bankpyme, Banca Cívica and Banco de Valencia at the moment of the corresponding adquisition

Dec'07 Dec'07 Proforma

Sep'14 Dec'14e

≈31,000 26,063

38,549 12,486 -7,032

-20%

Employee departures in line with expected calendar

Employee base to be reduced by 20% since 2007

Agreement to be fully executed by YE2014

Fulfillment of rightsizing targets: number of branches -25% since 2007

1,013 branches closed since Jan’2013

~60% of branches in BCIV and BdV regions closed

Delivery of synergies with the BdV and BCIV acquisitions

Cost saving targets - In Million Euros

436 423

654 682

Booked

2013 2014e 2015e

Target

31,517 -517

Acquisitions1 Net

departures Net

departures

Dec'07 Dec'07 Proforma

Sep'14

1

5,685 5,480 7,579 2,099

-25%

173 openings

Acquisitions -2,067 closings


14

Booked 9M14

470

Target

Estimated cost synergies of 42% of BBSAU's 1H14 annualised operating expenses

~ €150 MM of annual pre-tax costs savings achieved by 2016

Cost synergies NPV of €0.8 Bn (net of restructuring costs)

Expected cost synergies with the Barclays Bank SAU acquisition

+

+

+

15

Data as of September 2014

All of this supported by the leading multi-channel distribution network…

Source: Nielsen (internet and mobile banking market shares) 1) Latest available data 2) In branch timetable. Operations considered: withdrawals, cash deposits, savings account updates, bill payments and cheque deposits. Last available data 3) Operations considered: national bank transfers, Buy/sell stocks, bank bills (bill discount and bill acceptance). Latest available data 4) As of June 2014

Branches: the largest network (17.2% market share)4

Breakdown of branch market share


9.2% 10.8% 11.7% 30.6%

6.6%

30.0%

22.9%

14.0%

13.9%

25.8% 19.0% Ceuta

10.0% Melilla

5,685 Branches

Mobile banking: Global leadership 4.3 million customers

Internet banking: European leadership 9.8 million customers

34% market share1

82.87% absorption ratio for businesses3

ATMs: the widest network in Spain 9,659 ATMs 18.8% market share1

72.58% absorption ratio2

11.2%

8.1% 9.7%

13.7%

16.1%

7.6%

19.0%

16

…and by technological innovation, an integral part of our culture


Sustained increase in the number of transactions carried out via electronic channels Some sample initiatives that reflects our digital focus

29%

10%

9%

52%

28%

9%

8%

55%

2013 2014

Total transactions (in million) 4,022

5,830

Automated

ATMs

Branches

Internet & mobile

3,300 1st in Europe to launch a large-scale contactless card payment

1st in Europe to introduce a bracelet with a contactless chip inside

Leading adopter of banking mobility solutions

Use of digital signature to close contracts away from the branch

Ongoing rollout to all business segments

Focus on better serving client needs

Crowdsourcing platforms of ideas from clients and employees

2,000 ATMs

180,000 POSs

4 MM credit & debit Cards

Released to 2,700 bank managers

The Wall: 15,000 business banking clients

Recibox: 800,000 users

1

(1) Last data available

Focus on multi-channel banking reduces costs and increases perceived client value

21% 8%

20%

9%

18% 55%

41% 28%

2004 2014

Branches

ATMs

Internet (22% via mobile)

OPSs and

automated

Electronic channels gain importance… Transactions by channel1 (%)

Exponential growth of active mobile and internet customers2

Million of customers

28.2%3

Retail market penetration

Closest competitor

17.9%

Source: FRS (3) Includes BBSAU

33.3% Online

market share

Closest competitor

19.0%

Source: ComScore

17 (1) 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

… enabling the retail network to focus on value creation

Active online banking customers

X 1.8

3.0 3.2 3.5 4.4

5.1 5.4

2009 2010 2011 2012 2013 3Q14

+10% +9%

+26% +15%

+10%

Active mobile banking customers

X 7

0.4 0.6 1.1

1.9

2.8 3.4

2009 2010 2011 2012 2013 3Q14

+67% +86% +73%

+49%

+40%

X 8

Active mobile banking customers


Proximity

Specialised sales force

+ Quality of

service

One-stop financial services provider

Leading adopter of mobility solutions

Bespoke product &

service offering

Capillarity of the branch network provides ability to exploit niche market opportunities

5,685 Branches1

o.w. 386 Branches

# # CaixaBank branches AgroBank branches

Specialised models by segment: recent launch of AgroBank

386 specialised branches ~ 2,000 specialised account managers overall

NETWORK CAPILLARITY SEGMENTATION

SINGLE PLATFORM TECHNOLOGY

1 M agricultural, livestock and farming businesses in Spain

3% of GDP

330,000 (28%)

Clients (market penetration)

€14 bn

Business volume

Agricultural business segment

18

(1) Includes branches and representative offices abroad

220

87

458

131 964 283

177

682

48 181 186

195

86

1.528 332

29

4 Ceuta 2 Melilla

50

75

5 192

3

18

34 15

1

6

30

1

16 15


https://shacon.ia.lacaixa.es/sites/0073/Documents/325962/AGROBANK_12/index.html

https://shacon.ia.lacaixa.es/sites/0073/Documents/325962/AGROBANK_12/index.html

Reputation and excellence in retail banking continue to be recognized by the market

19


Europe's best bank in mobile banking

European Seal of Excellence

Granted by the European Foundation for Quality Management (EFQM)

The best Spanish bank in Internet banking

‘Innovation in Green IT‘ Recognition of CaixaBank’s new Data Centre for its high level of efficiency and low energy

consumption

The most innovative business model in Private Banking

The world's most innovative bank in 2011 and 2013 Bestowed at the Global Banking Innovation Awards, organized by the Bank Administration

Institute and Finacle TrailBlazer Award, in recognition of CaixaBank’s technology position

‘Bank of the Year in Spain 2013’ by The Banker (Financial Times Group) Recognition of CaixaBank’s strength and solvency position

The ‘Best Bank in Spain 2012 and 2013’ and the ‘Best Bank for Technology Innovation 2013 and 2014’

http://www.thebanker.com/Awards/Innovation-in-Technology-Awards/Innovation-in-Technology-and-Transaction-Banking-Awards-2013

Certification EFQM +600: Renewed EFQM Seal of Excellence becoming the first company that manages to jump two sections of score in the renewal process.

Renewed Certification AENOR 22222 for Affluent Banking: CaixaBank affluent banking receives the AENOR certification for the Affluent Banking business model in June 2014

FRS Inmark – Financial performance of Businesses between 1 to 100 € million in Spain (2012 - bi-annual publication ): “la Caixa” leader institution on the following aspects: Standard of satisfaction among its customers Most recommended company Level of its customer loyalty

“la Caixa” is also leader in customers loyalty and continues as a leader in

market penetration and participation share (FRS Inmark – Financial performance of individual segment - 2013).

Highest rated Internet service for all segments (individuals and businesses) (AQmetrix)

Reinforced by a premium brand reputation

Quality service

Best Retail Bank of Technology Innovation for the second consecutive year

Best Bank in Spain 2012 and 2013


21 Figures as of September 30th 2014

~3 million individual life customers ~5 million non-life customers

€50.4 bn assets under management

Leader in Spanish complementary pension market

Diversified product offering (life, pension plans, health, household, auto)

Strong distribution capacity

5,685 CaixaBank branches

VidaCaixa 208 specialized own agents in SMEs segment and

self-employees 5 private pension advisors

SegurCaixa Adeslas 1,333 own agents 848 external agents 1,403 brokers 153 delegations and offices

The insurance business is a perfect complement to the banking business

A top insurance group with the widest distribution network

Life insurance business: Sustained increase in investments + AUMs In Million Euros

Premiums and contributions In Million Euros


Premiums and contributions 9M14

Life/Risk 475

Life/Savings 2,994

Contr. to pension plans 971

TOTAL 4,440

+9%

46,366

47,628 48,627

49,485 50,430

Sep'13 Dec'13 Mar'14 Jun'14 Sep'14

22

CaixaBank

1. Overview







8. Final remarks

9. Appendices

2007: the right strategic vision at the right time

4. Supporting international growth of our customers

1. Likely slowdown of the Spanish banking sector

3. Risk diversification

2. Search for growth

Representative offices

International Branches

Investment in growth markets (Asia, America, Central and Eastern Europe)

1

2

WHY? HOW?

Organic growth

Non-Organic growth

“la Caixa” Group Strategic Plan

2007-2010: decision to grow internationally

23

Our process of internationalisation


24

Focused on growth markets

International Branches Banking investment

(1) Market value as of 28th October 2014 (2) As of August’14 (3) Non listed. Market value based on the price of the Public Offer launched by Société Générale as of May’14

International branches:

• Warsaw (Jun’ 07) • Casablanca (Jul’09) and Tangier (Nov’13)

Loan Portfolio: : €171 M 2

Pending regulatory approval: London

Banking investments: Market value1: €4.8 bn

Non-European Union European Union

• Beijing, Shanghai • Frankfurt, Stuttgart

• Dubai • London

• New Delhi • Paris

• Istanbul • Milan

• Singapore

• Cairo

• Santiago de Chile

• Bogotá

• New York (January 2015)

Pending regulatory approval: Sao Paulo and Algiers

Representative offices:


International banking1

9.0%

44.1%

€1,021 M

20.5% €218 M3

9.1% €776 M

18.0% €1,368 M

€1,369 M

Representative Offices

Development of a partnership model

Financial positions

Controlling Acquisitions

Control/Synergies/Risk

Control/Synergies/Risk

25

Long term horizon

Influential positions

Investment at fair value - no control premium paid

“Investing in winners”

Well-managed banks with solid competitive positions

Strong local partners with common views

Retail focus / low reliance on wholesale funding

High solvency levels & sound credit quality

Long-term strategic agreements

Sharing best practices

Exporting know-how where appropriate

Development of joint businesses and projects

Building strong international alliances

Investment profile

Partnership model

+

-


26

CaixaBank

1. Overview







8. Final remarks

9. Appendices

Repsol and Telefónica provide revenue diversification

27

Income diversification: two international leaders in defensive sectors

Financial flexibility: very liquid stakes

Potential capital buffer

Value: solid fundamentals, excellent track record and high dividend yield

Profitability: attractive return

Limited regulatory capital consumption

Tax-efficient (≥ 5%)

Geographical diversification: ~65% revenues generated outside Spain

5.2%2

11.9%2,3

Market value1: €5.6 bn

(1) As of 28th October 2014 (2) As of 30th September 2014 (3) CaixaBank’s stake in Repsol could be reduced by a maximum of 2.5% considering the exchange of the €594.3 M mandatorily exchange bond maturing in Nov’16


28

CaixaBank

1. Overview







8. Final remarks

9. Appendices

Best-in-class balance sheet strength

29

Figures as of September 30th 2014


BIS-III Core Capital (fully loaded) at 12.7% BIS-III Core Capital (phase-

in) at 13.1%

Total credit provisions of €12.4 bn NPL Coverage ratio at 58%

Coverage of foreclosed

assets: 53%

€61.2 bn of available liquidity

Sound loan-to-deposit

ratio: 102%

Robust capital base Reinforced asset quality Strong liquidity position

Maintaining balance sheet strength is a key priority for management

30

Asset quality

Steady reduction of NPLs while maintaining robust coverage

31

9.41%

11.17% 11.40% 11.66%

10.48% 11.36%

10.78%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

NPL stock falls for the fifth consecutive quarter (-15% YTD, -5% qoq)

NPL coverage strong and stable at 58%, with €12.4 bn of credit provisions

NPL ratio declines for the third consecutive quarter (-30 bps qoq) supported by clean-up and lower entries

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

21.4

25.7 25.9 22.5

25.4

BdV 2.0

24.0

Refinanced loans

-€4.3 bn yoy

3.3

-€1.2 bn qoq

Well-established downward trend in NPLs and NPL ratio

NPL ratio (in %)

NPLs (in Billion Euros)

22.6

YTD change:

-118 bps

• Deleveraging: (lower denominator)

• Net NPL formation:

+62 bps

-180 bps


6.70%

5.30%

4.29%

8.16%

21.76%

11.29%

57.80%

1.26%

10.78%

NPLs continue to decline across all segments

32 (1) NPL ratios include contingent liabilities (2) Note that this ratio differs slightly from the segment reporting NPL ratio (6.5%) due to different segmentation criteria

Fourth consecutive quarterly decline in residential mortgage NPL ratio

RE developer book largest contributor to decline (-€0.9 bn qoq)

Ratio of corporate (ex RE) NPLs impacted by denominator effect

QoQ changes in NPLs by segments and evolution of NPL ratios

Loans to individuals

Residential mortgages - home purchase

Other

Loans to businesses

Corporate and SMEs

Real Estate developers

Public sector

Total1

Ex- Real Estate developers2

30th Jun 14

31st Mar 14

5.40%

4.32%

8.56%

22.77%

11.21%

58.68%

1.36%

11.36%

6.80%

NPLs qoq var. (€M)

(134)

(51)

(83)

(989)

(101)

(888)

(16)

(1,139)

(251)

NPL ratios

6.70%

5.32%

4.28%

8.43%

21.33%

11.54%

56.27%

1.01%

10.48%

30th Sep14


Performing RE developer loan book stabilising after intensive clean up

33

RE developer loans breakdown evolution In Billion Euros

8.9 7.0 6.7 6.2 6.1

2.6

1.1 1.0 0.8 0.7

12.2

11.9 10.9

9.7 8.8


Performing

Substandard

NPL

15.6

23.7

20.0 18.6

16.7 Coverage

54% (€4.7 bn)

34% (€0.2 bn)

Target of reducing the book to €15 bn by YE within reach

RE developer credit exposure down -34% yoy and -6.7% qoq:

o Mostly attributable to NPL reduction through foreclosures and write-offs

RE developer book has €4.9 bn of provisions:

o Coverage of RE problematic loans at 52%

o Coverage of total RE loans exposure: 32%

-€8.1 bn (-34%)

-6.7%


Wind-down of RE developer portfolio leads to higher net foreclosed stock

34

(1) The real estate holding company of CaixaBank, S.A.

RE assets from loans to construction and RE development

Finished buildings

Buildings under construction

Land

RE assets from mortgage loans to households

Other repossessed assets

Total RE assets for sale (net)

Rental portfolio (net)

5,084

2,661

325

2,098

1,245

627

6,956

2,479

55%

45%

59%

63%

46%

50%

53.1%

Net amount Coverage

Stable coverage of 53% since 4Q13

€2.5 bn rental portfolio with a 87% occupancy ratio

Net real estate exposure (RE developer loans and repossessed RE assets) down -4.5% YTD

Building Center1 repossessed real estate Assets As of September 2014. Net amount in Million Euros

% coverage

49% 53% 53% 53% 54%

6,327 6,169 6,412 6,747 6,956

1,531 1,850 2,064 2,285 2,479



2,269

6,271

9,983 2,022

6,717

6,384

9M12 9M13 9M14

333

790 964 309

754

742

9M12 9M13 9M14

High pace of disposals continues to increase

35

Disposals increase by 10% yoy and 26% in terms of units :

o Sales up 22% yoy

o Rentals now make up 43% of disposals

Real estate prices stabilising but still generate losses

Building Center commercial activity

In Million Euros

Building Center commercial activity

In number of units

Sales

Rental assets

Sales

Rental assets

1,706 1,544

642

16,367

12,988

4,291

+10% +26%


36

Ample liquidity position

TLTRO and ECB stance improve liquidity landscape even further

LTD ratio evolution1

Closing funding gap reduces LTD ratio by 16% yoy

37

118% 110%

102% 102%


Total available liquidity

In Billion Euros

31.6 34.8

29.2 26.4

Dec'13 Sep'14

Unused ECB discount facility

Balance sheet liquidity2

60.8 61.2

+€0.4 bn

(1) Defined as: gross loans (€194,447 M) net of loan provisions (€11,832 M) (total loan provisions excluding those corresponding to contingent guarantees) and excluding pass-through funding from multilateral agencies (€7,032 M) / retail funds (deposits, retail issuances) (€171,419 M)

(2) Banking liquidity: includes cash, interbank deposits, accounts at central banks and unencumbered sovereign bonds

TLTRO: €3 bn in September and remaining €3.6 bn expected in December

LTRO reduced by €5.4 bn qoq

Liquidity and funding requirements for BBSAU can be comfortably managed

LTD ratio will increase to 106%

BBSAU has €5.5 bn of ECB funding

ECB funding – In Billion Euros

15.5

6.6

Dec'13 Sep'14

118% 110%

102% 102%


105%

-42%

+€0.4 bn


ALCO portfolio reinvestment risk partially mitigated by wholesale funding maturities

Significant potential to reduce current cost of wholesale funding (2.4%) as issues gradually mature

ALCO portfolio evolution1

In Billion Euros

Wholesale funding maturities schedule

In Billion Euros

€1.3 bn

2014

€6.7 bn

2015

€7.3 bn

2016

Wholesale maturities as of September 30th

27.1 29.0 32.8 31.8

13.5 12.8 11.2 10.5

Dec'13 Mar'14 Jun'14 Sep'14

Spanish sovereign bonds Other

Yield 3.3% 3.4% 3.4% 3.4%

Average life 2.1y 2.2y 2.6y 2.5y

40.6 41.8 44.0 42.3

38

(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.


39

Solvency & Capital management

B3 phase-in

B3 phase-in

B3 fully loaded

Gradual capital build-up leads to best-in-class metrics

40

• Solid capital ratios regardless of metric involved

• BBSAU acquisition is expected to have a limited capital impact of ca. 75 bps

Leverage ratio

Total Capital 16.2%

Phase-in

5.9%

Fully Loaded

16.0%

5.7%

CET1 ratio evolution - In %

RWAs €152.5 bn

€18.6 bn

€141.8 bn

13.1% +103 bps 12.7%

9M capital generation

January 2014 September 2014

12.1%1

CET1 €18.4 bn

(1) The January 2014 figure has been revised to take into account current Basel III phase-in arrangements. The CET1 phased-in ratio computed according to these criteria would have been 12.8% as of 30 June 2014 instead of the 12.7% reported in the 1H 2014 webcast

CET1 13.1% 12.7%

-38 bps

FL impact


-4 bps +180 bps -230 bps

1,1

2013 Pre-AQR

2013 Post AQR

2016 Baseline

2016 Adverse

2016 Adverse

post MCB

10.9 %

+110 bps

(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 capitalization as of October 24th 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.

The most solvent1 amongst the top 10 Euro Area banks2

41

ECB comprehensive assessment confirms excellence in solvency

5.5%

6.8%

8.1%

8.1%

8.3%

8.7%

8.8%

8.9%

8.9%

9.0%

10.3%

Threshold

UniCredit

BNP Paribas

Société Générale

Intesa Sanpaolo

ING

Crédit Agricole

Deutsche Bank

Santander

BBVA

CaixaBank

BIS III Phase-in CET1 as % of RWA in the adverse scenario

Results breakdown BIS III Phase-in CET1 as % of RWA

3

AQR:

• Minimal impact (-4bps) • Lower impact than peers2 • Overall excess provisioning relative to AQR standard

11.4%

ST Adverse Scenario:

• CABK outperforms Euro Area and Spanish peers2 • Capital surplus of €9.5bn with MCB converted in 20143 €8bn

surplus3

10.8 %

12.6 %

10.3%


42

CaixaBank

1. Overview







8. Final remarks

9. Appendices

Shift in client savings mix to more value-added products still underway

Total funds breakdown In Billion Euros

I. Funds on balance sheet

Demand deposits

Time deposits

Retail debt securities

Subordinated liabilities

Institutional issuance

Insurance

Other funds

II. Off-balance sheet funds

Mutual funds1

Pension plans

Other managed resources2

Total funds

o.w. Retail funds

245.6

89.0

76.0

3.0

3.4

39.3

31.8

3.1

61.7

35.4

18.6

7.7

307.3

268.0

(0.8%)

10.7%

(6.4%)

(2.7%)

(6.6%)

(11.5%)

3.1%

(23.9%)

10.2%

26.5%

11.0%

(31.5%)

1.2%

3.4%

YTD 30th Sep.

43

(1.9%)

(2.2%)

(4.1%)

(0.8%)

(6.6%)

0.4%

1.1%

13.2%

4.5%

8.3%

3.4%

(8.2%)

(0.7%)

(0.8%)

qoq

(1) This category includes SICAVs and managed portfolios besides mutual funds. (2) Primarily includes regional govt. securities and “la Caixa” Banking Foundation sub debt (3) Managed Funds encompasses mutual funds, pension funds and insurance volumes

Retail funds grow 3.4% YTD

Quarterly evolution impacted by 2Q seasonal effects

Structural shift to managed products as low rates persist

Current accounts also grow as opportunity cost of liquidity falls

Weight of time deposits falls relative to current accounts and managed funds3

76 86

81 76

81 89

Dec'13 Sep'14

Managed funds Time deposits Demand deposits

+11%

-6%

+14%


Intensive RE developer and NPL clean-up contribute to deleveraging trends

44

Loan-book breakdown In Billion Euros, gross

I. Loans to individuals

Residential mortgages – home purchases

Other

II. Loans to businesses

Corporates and SMEs

Real Estate developers

“la Caixa” Banking Foundation and RE subs.

Loans to individuals & businesses

III. Public sector

Total loans

Performing loans (ex RE)

112.9

84.5

28.4

69.7

52.7

15.6

1.4

182.6

11.8

194.4

166.6

(4.1%)

(3.4%)

(6.1%)

(12.1%)

(10.2%)

(21.9%)

110.0%

(7.3%)

16.4%

(6.2%)

(4.3%)

YTD 30th Sep.

(2.5%)

(1.1%)

(6.5%)

(4.4%)

(3.8%)

(6.7%)

0.2%

(3.2%)

9.3%

(2.6%)

(1.4%)1

qoq

Asymmetric deleveraging continues

Performing loan-book (ex RE) down 1.4% qoq , adjusting for seasonality1

40% of €12.8 bn deleveraging YTD attributable to RE and NPLs :

RE developer loan book has declined 22% YTD

NPL stock has declined 15% YTD

Exposure to public sector increases as ratings improve

(1) The “Other Loans to individuals” category includes pension prepayments which were seasonally higher in June by €1.4 bn


45

Net income driven by improvement in core operating results and lower loan loss charges

Consolidated income statement

(1) Includes dividends and income from associates (2) 2014 includes €101 M income from the insurance business and €-249 M deposit guarantee fund contribution. 2013 includes €79 M income from the insurance business and €-215 M deposit guarantee fund contribution (3) 2014 includes losses from the sale of foreclosed assets. 2013 includes mainly BdV badwill and the capital gain of the partial disposal of Inbursa (4) Taxes mainly affected by the exemption of income from investments

Solid operating performance

o NII grows 4.7% yoy as improvement in funding costs accelerates

o Fees improve 4.1% yoy while quarter affected by 2Q exceptional performance and seasonality

o Strong YTD pre-impairment income recovery slowed by reduction in 3Q trading income

o Maintaining cost discipline drives recurrent operating costs down -6.1% yoy / flat qoq

Loan loss charges improve significantly on a path to normalisation

9M13 yoy (%) 9M14 In Million Euros

qoq (%)

Net interest income

Net fees

Income from investments1

Gains on financial assets

Other operating revenue & exp.2

Gross income

Recurring operating expenses

Recurring pre-impairment income

Extraordinary operating expenses

Pre-impairment income

Impairment losses

Profit/loss on disposal of assets and others3

Pre-tax income

Taxes4

Profit for the period

Minority interests

Profit attributable to the Group

4.7

4.1

(35.5)

(4.0)

(1.6)

(0.6)

(6.1)

6.7

68.4

(47.8)

488.9

3.0

1.6

3.6

(6.8)

93.2

(77.9)

130.2

(10.6)

(0.5)

(21.3)

(21.3)

(26.9)

10.4

(8.8)

5.9

5.3

3,074

1,374

367

577

(148)

5,244

(2,824)

2,420

2,420

(1,799)

(156)

465

1

466

466

2,936

1,320

569

601

(150)

5,276

(3,007)

2,269

(832)

1,437

(3,449)

2,091

79

373

452

(6)

458


Core business leads recovery in profitability

9M14 In Million Euros

Net interest income

Net fees

Income from investments

Gains on financial assets & other oper. rev. & exp.

Gross income

Recurring operating expenses

Pre-impairment income

Impairment losses

Profit/loss on disposal of assets and others

Pre-tax income

Taxes

Profit attributable to the Group

Own funds (average, €Bn)

ROE (%)

Cost-to-income (9 mths)

3,074

1,374

367

429

5,244

(2,824)

2,420

(1,799)

(156)

465

1

466

23.7

2.6%

53.9%

3,306

1,369

98

472

5,245

(2,744)

2,501

(1,107)

1,394

(357)

1,037

18.7

7.4%

52.3%

305

(1)

5

(116)

(112)

(78)

(190)

(692)

(174)

(1,056)

314

(742)

1.8

(54.5%)

305

(231)

269

73

111

(2)

109

18

127

44

171

3.1

7.3%

Banking & insurance (ex -Real Estate)

Real Estate activity1

Equity Investments

(1) The Real Estate activity includes primarily loans to RE developers and foreclosed real estate assets

Banking & insurance (ex RE)

Core businesses leads to a gradual improvement in profitability

Significant improvement in CoR

Real Estate activity

Strong provisioning effort continues

Investments

Income normalises after the 2Q one off impact from EBS’ profit warning

46

Consolidated income statement, by business segment


2014 NII to benefit from lower funding costs and slowing pace of deleveraging

47

NII up ~5% yoy driven by lower funding costs- more than offsetting deleveraging and lower loan yields

NII, in Million Euros

992 967 977

1,019 993

1,022 1,059

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

+4.7%

+3.6%

Customer funds Loans and credits Customer spread

Customer spread up 8 bps qoq driven by sustained reduction in time deposit costs

In %

NIM improvement fuelled by stable asset yields and funding cost improvement

In %

1.10 1.11 1.13 1.19 1.21 1.24 1.27

2.74 2.63 2.63 2.63 2.63 2.67 2.66

1.64 1.52 1.50 1.44 1.42 1.43 1.39

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Total liabilities NIM Total assets

9M13: 2,936 9M14: 3,074

3.21 3.07 3.00 3.02 3.04 3.08 3.00

1.55 1.45 1.37 1.28 1.21 1.07 0.91

1.66 1.62 1.63 1.74 1.83 2.01 2.09

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14


Retail funding costs remain on a clear downward trend

Sustained reduction in time deposits costs

258 244 235 218 204 184 163

180 173 137 129

110 77

58

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

-71 bps -78 bps -98 bps

-89 bps

Front

Back

Time deposits and retail CP - Back vs. front book (bps)

-107 bps

48

-94 bps

Loan yields flex as low rates passed on

321 307 300 302 304 308 300

424 465 472

426 427 404 376

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

+158 bps

+96 bps +103 bps +172 bps +124 bps

Loan book yields - Back vs. front book (bps)

Front

Back

+123 bps

Front book falls 79 bps in 12 months

New ECB measures reinforce these trends

Still some room for improvement in the front book

Loan yields compress as lower cost of funding is passed on to clients

New production still generates attractive returns

12M Euribor affecting mortgage back book

-105 bps +76 bps


+3.1%

Positive performance in insurance and mutual funds offset by seasonality and 2Q exceptionals

49

Net fees

In Million Euros

446 444 430 440 454 476

444

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

+4.1%

Net fee breakdown In Million Euros

Banking fees

Mutual funds

Insurance and pension plans

Net fees

yoy (%) 9M14

964

172

238

1,374

(4.0)

35.1

25.9

4.1

qoq (%)

(10.4)

12.3

(4.9)

(6.8)

4.1% yoy fee growth above 14E guidance of 2-3%

3Q impacted by seasonality and 2Q strong performance

Mutual funds still showing strong quarterly growth

9M14: 1,374 9M13: 1,320


Clients find guaranteed and FI funds an attractive alternative to low-yielding term deposits

Asset management mix improves towards higher value added products

Wide range of funds offering provides an operating hedge for low rates

Asset management is a significant and growing contributor to fee income

50

Breakdown by type of investment vehicle1

In Billion Euros

12.6 11.3

9.1 16.5

6.3

7.6

Dec'13 Sep'14 Passively managed

Actively managed

SICAVs, managed portfolios and third party

35.4

28.0

+27%

+21%

+81%

-10%

InverCaixa: growth in AuM and investors Growth in AuM and number of investors YTD, in %

AuM # of Investors

21.7

27.8

Dec'13 Sep'14

757

885

Dec'13 Sep'14

(1) These figures differ from the AuMs of InverCaixa due to the category “SICAVs, managed portfolios and third party funds”. The actively managed funds category includes stock, balanced and fixed income funds; the passively managed funds category includes guaranteed funds with a target return.

+28% +17%


Cost base reduction evolves in line with expectations

51

Impact of BCIV/BdV cost synergies reduce expenses by -6.1% yoy

Cost discipline expected to keep recurring cost base flat

Evolution of operating costs

In Million Euros

832

9M13 Total costs

3,839

Extraord.

1Q13 2Q13 3Q13 4Q13 2Q14

1,019 940 940 988 1,000

Recurrent costs

-6.1%

2013 2014

940

1Q14

9M13: 3,007 9M14: 2,824

944

3Q14


Recovery in core operating income sets a clear path for sustainable profitability

Core Operating Income: clear upward trend

NII + Fees - Recurring Expenses (In Million Euros)

52

Solid evolution of Core Banking Operating Income based on:

o Recovery of NII based on spreads improving as funding costs normalise

o Improvement in fees driven by a shift in client savings mix to life insurance and assets under management

o Strict cost discipline keeping costs flat

419 411 419

519 507 554 563

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

+30%

+1.6%

9M13: 1,249

9M14: 1,624


883

504

633 744

611 610

441

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Sustained reduction of recurrent credit provisioning

53

Loan loss charges make a step change on path to sustainable cost of risk

2.98%

2.30% 1.95% 1.86%

1.15% 1.17% 1,07%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

1.08%1

Positive trends in Cost of Risk continue despite denominator effect In Million Euros

2013 average: ~700

€2,764 M

2014 average: ~550

Progressive normalisation in the level of charges with CoR down 87 bps yoy

Decline in quarterly charges supported by:

more benign macro and collateral environment

lower NPL entries

absence of major extraordinary items

recoveries related to sales of written-off loans and NPLs (€40 M capital gain)

(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


Delivering on our guidance

Target: ~5% growth in NII NII, in Million Euros

Target: +2-3% growth in net fees Net fees, in Million Euros

Target: Cost efficiency Recurring operating costs, in Million Euros

Target: Gradual reduction of the cost of risk Cost of risk, in basis points

2,936 3,074

FY2013 FY2014

9M14: 9M13:

3,955

~ 5%

1,320 1,374

FY2013 FY2014

9M14: 9M13:

1,760

+4%

+2-3%

3,007 2,824

FY2013 FY2014

9M14: 9M13:

-6%

3,947

-5%

FY14:

+5%

FY13:

186

108

60

4Q13 9M14 Normalised level

-78 bps

54


55

CaixaBank

1. Overview







8. Final remarks

9. Appendices

1

2

3

4

5

Strengthen leadership in retail banking

Diversify operations towards corporate banking

Balance out geographical presence

Develop international strategy

Maintain financial strength

• 15% market share in business volume

• 35% of loan book (excluding Real Estate developers) geared towards corporate banking (from 29% in 2010)

• Accelerate growth outside Catalonia and Balearic Islands (to 65% share in business volume, up from 55% in 2010)

• Strengthen existing alliances • Increase business abroad with existing and new clients

• Pre-emptive management of solvency, liquidity and risk. • Core capital B3 8%-9%

Key strategic initiatives 2011-2014

6 Improve profitability • Targeted ROE in mid-teens in the medium term

7 Increase efficiency and structural flexibility • Structural optimisation • Leverage new technologies

8

9

Manage talent • Appraise performance • Enhance professional growth opportunities

Communicate • Internal communication • External communication to all stakeholders

56


TBD

TBD

(1) Deposits and credit to the private sector excluding monetary financial institutions; deposits do not include commercial paper.

Source: “la Caixa” Research Department. Forecasts as of October 3, 2014

57

A weak macroeconomic outlook with low interest rates

Real GDP growth

Inflation (end of period)

Unemployment rate

Housing prices (nominal growth)

Deposit growth (end of period)1

Loan growth (end of period)1

3 month Euribor rate (%)

12 month Euribor rate (%)

0.1

2.4

21.4

-5.6

-3.8

-3.3

1.4

2.0

-1.6

2.9

24.8

-8.8

-2.0

-10.0

0.6

1.1

-1.2

0.2

26.1

-5.8

0.7

-9.8

0.2

0.5

1.2

0.5

24.6

-2.3

-1.5

-5.9

0.2

0.5

1.7

1.3

23.3

0.7

0.0

-0.5

0.1

0.3

2011 2012 2013 2014e 2015e

Macroeconomic outlook-Spain

Interest rates

Y-o-y growth, Annual averages (%)

Financial outlook

Base case

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

J A Jl O J A Jl O J A Jl O J A Jl O J A Jl O

ECB Euribor 3m Euribor 12m

2011 2012 2013 2014 2015

0.40

2.00

0.55

0.54

0.33

0.05

1.43

0.19

0.28

0.06

1.00

0.05

0.75

0.25 0.05


58

CaixaBank

1. Overview







8. Final remarks

9. Appendices

Key takeaways

Retail funds up 3.4% YTD with quarter impacted by seasonality (-0.8% qoq)

Ongoing structural shift to managed funds (+14% YTD/4% qoq)

Deleveraging continues: performing loan-book (ex RE) down 1.4% qoq

Barclays Spain provides M&A volume boost in a low-growth environment

NII improvement continues (+4.7% yoy / +3.6% qoq):

o driven by reduction in funding costs

o front book now at 58 bps (vs 77 bps 2Q)

Fees (+4.1% yoy / -6.8% qoq) reflect positive trends in managed funds and 2Q strong performance/seasonality

Recurrent operating costs as expected: -6.1% yoy/flat qoq

Net income (1.6% yoy / +5.3% qoq) underpinned by core income growth and steep decline in loan loss charges

1. Business volumes in line with prior trends

2. Solid core income progression

NPL stock falls for fifth consecutive quarter (-5% qoq,-15% YTD) while ratio declines for third consecutive quarter to 10.48%

RE developer loan book undergoes an intensive clean-up (-21.9% YTD / -6.7% qoq) and leads correction in NPLs

Cost of Risk improves further to 108 bps

12.7% CET1

16.0% Total capital

5.7% Leverage Ratio

3. Continued asset quality improvement

4. Best in class capital metrics

59

BIS 3 Fully loaded

8. Final remarks

CaixaBank Corporate presentation

Appendices

60

Appendices

61

Refinanced loans p. 61

Segment reporting p. 63

Ratings p. 65

Financial statements p. 67

International banking p. 70

Corporate governance p. 75

Acquisition of Barclays SAU p. 77

Total refinanced loans as of 30 September 2014

62

Refinanced loans

1.1

5.9

5.4

9.1

21.5

16.1

3.8

Performing Substandard NPL

1.0

2.4

1.4

5.4

10.2

8.8

-

0.1

1.4

0.5

0.8

2.8

2.3

0.3

€Bn

Public Sector

Corporates (ex-RE)

RE Developers

Retail

Total

Of which: Total Non-RE

Existing provisions

0.0

2.1

3.5

2.9

8.5

5.0

3.5

Total

Appendices

63

Refinanced loans

Segment reporting

Ratings

Financial statements

International banking

Corporate governance


Segment reporting: methodological considerations

64

Segment reporting

Includes: banking income (retail banking, corporate, treasury and markets); income from insurance activities; liquidity management and ALCO (which funds and allocates capital to other businesses)

2014 data reports separately real estate activity, which has as assets:

o Loans managed by a business unit that operates, mainly, through specialized real estate loan centers

o Foreclosed real estate assets owned, mainly, by the real estate subsidiary Building Center

o Other real estate-related assets and subsidiaries

Banking & Insurance

Equity investments

Includes international banking investments, the stakes of Repsol and Telefónica, as well as other significant stakes

Cost of financing from the banking and insurance business: 10 year Spanish Government yield + a spread

Capital allocation

Capital allocation by business:

o According to BIS III fully-loaded regulatory capital consumption (based on credit, market and operational risks and deductions). Corporate target for the CaixaBank Group: CET1 10% of RWAs

o The capital surplus is allocated to the Banking & Insurance business

Appendices

65

Refinanced loans

Segment reporting

Ratings





66

Moody’s Investors Service Baa3

BBB-

BBB

P-3

A-3

F2

stable

positive3

Long term

Short term

Outlook

A1

A

-

CaixaBank credit rating Rating of CaixaBank’s

covered bond program

Ratings

positive

A (low) - R-1 (low)

negative4

Ratings

(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 June 4, 2014, Standard & Poor’s affirmed the rating and revised the outlook from stable to positive. 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

2

1

http://www.dbrs.com/

Appendices

67

Refinanced loans

Segment reporting

Ratings





68

Balance sheet


Cash and Central Banks 2.933 2.139

Trading portfolio 8.817 9.470

Available-for-sale financial assets 57.790 70.062

Loans 212.820 192.472

Deposits at credit institutions 5.465 5.137

Customer loans 203.290 184.776

Debt securities 4.065 2.559

Investment portfolio at maturity 17.470 14.793

Non-current assets held for sale 6.571 7.841

Investment portfolio 9.098 9.105

Property and equipment 5.281 6.006

Intangible assets 3.874 3.635

Other assets 18.021 18.176

Total assets 342.675 333.6990 0

Liabilities 318.328 308.366

Trading portfolio 7.511 8.577

Financial liabilities at amortized cost 265.168 248.543

Deposits by credit institutions and Central Banks 47.785 25.779

Customer deposits 169.366 180.887

Marketable debt securities 40.333 33.819

Subordinated debt securities 4.065 4.579

Other financial liabilities 3.619 3.479

Insurance liabilities 30.813 38.258

Provisions 4.315 4.076

Other liabilities 10.521 8.912

Equity 24.347 25.333

Shareholders' equity 23.776 23.763

Profit attributable to the Group 458 466

Equity adjustments by valuation 571 1.570

Total liabilities and equity 342.675 333.699

Sep. 30, 2014€ million

Sep. 30, 2013

69

P&L


€ million 2014 2013

Financial income 6.568 7.043 (6,7)

Financial expenses (3.494) (4.107) (14,9)

Net interest income 3.074 2.936 4,7

Dividends 104 104

Share of profit (loss) of entities accounted for using the equity method 263 465 (43,4)

Net fees and commissions 1.374 1.320 4,1

Gains on financial assets and exchange rate differences 577 601 (4,0)

Other operating income and expenses (148) (150) (1,6)

Gross income 5.244 5.276 (0,6)

Recurring expenses (2.824) (3.007) (6,1)

Extraordinary expenses (832)

Pre-impairment income 2.420 1.437 68,4

Pre-impairment income stripping out extraordinary costs 2.420 2.269 6,7

Impairment losses on financial assets and others (1.799) (3.449) (47,8)

Gains/(losses) on disposal of assets and others (156) 2.091

Pre-tax income 465 79 488,9

Income tax 1 373

Profit for the period 466 452 3,0

Minority interest (6)

Profit attributable to the Group 466 458 1,6

Change

%

January-September

Appendices

70

Refinanced loans

Segment reporting

Ratings





71

Share price performance1

International banking investments: Erste Bank

International Banking

Main Agreements (Jun’09)

€M 9M14/ Sep’14

% Change1

Gross Loans 128,315 0.5%

Deposits 120,061 2.0%

Total Assets 196,973 (1.6%)

Net Interest Income 3,369.6 (4.2)

Operating profit 2,348.1 (0.6%)

Net profit -1,484.0 -

Cost to income ratio 52.3%

NPL ratio 8.9%

Coverage ratio 68.8%

Loan to Deposit2 100.3%

Core Tier I (BIS III) 10.8%

Employees 46,037

Branches 2,809

Net loss attributed to extraordinary impacts; comfortable capital position

Preferred Partner Agreement: CaixaBank may increase its stake in Erste Group up to 20% with prior consent of Erste Foundation (main shareholder)

Strategic collaboration agreement:

o CaixaBank: preferred co-investor partner

o Cooperation between Erste and ”la Caixa” in the development of banking services and products

(1) Balance Sheet % Change refers to YTD variations (2) Loan to deposit calculated over net loans

MSCI World Banks

Erste Bank

(1) Share price evolution from 1st Jan’09 to 28th October’14

+48% +23%

0

50

100

150

200

250

300

Jan-09 Nov-11 Oct-14

72

Strategic investment agreement: CaixaBank may increase its stake in BEA up to 20% with prior agreement of BEA

Strategic collaboration agreement:

o BEA: exclusive platform for potential financial investments in the Asia Pacific region

o Cooperation between BEA and CaixaBank in the development of banking services and products

o Collaboration between BEA and “la Caixa” Foundations

Established an agreement to create a joint- venture for autoloans business in China (Aug’12)



HKD M 6M14/ Jun’14

% Change1

Gross Loans2 438,802 8%

Deposits 559,512 5%

Total Assets 805,349 7%

Net Interest Income 6,241 10%

Net operating Income 4,309 13%

Net Profit 3,580 6%

Cost to income ratio 53%

NPL’s 0.44%

Coverage ratio 60%

Loan to Deposit2 83%

Core Tier l 11.6%

Employees 12,801

Branches 234

Solid, positive results. Above market expectations

International banking investments: The Bank of East Asia


MSCI World Banks

BEA

+48%

+117%


(1) Balance Sheet % Change refers to YTD variations (2) Includes Loans and trade bills

0

50

100

150

200

250

300


40

80

120

160

200

240

280


73


International banking investments: Grupo Financiero Inbursa


MSCI World Banks

GFI


+48%

+142%

Impressive solvency and solid business


Existing shareholders’ agreement certifies the exclusivity of CaixaBank as a partner of Inbursa

Retail Banking Business Plan in Mexico:

Reaching 500 “light” commercial branches by 2015

Clear customer orientation: product development to boost retention and cross-selling

A CABK resident executive manager ensures on-site transfer of retail banking know-how from CABK to Inbursa

MXN M 9M14/ Sep’14

% Change1

Gross Loans 191,853 (4%)

Total Customer Funds 439,150 8%

Total Assets 366,999 2%

Net Interest Income 11,047 14%

Net Operating Income 17,248 5%

Net profit 13,168 57%

NPL's 3.8%

Coverage ratio 274%

Loan to Deposit 118%

TIER 12 20.0%

Employees 7,115

Branches 326

Sales Force 15,884

(1) Balance Sheet % Change refers to YTD variations (2) August 2014

74

Inbursa: successful implementation of our Partnership Model An increasingly successful alliance

International banking investments: Grupo Financiero Inbursa


Focus on “Final Retail Customer”: maximize cross-selling and customer retention, with

support of “la Caixa”’s know-how .

Branch network development to enhance commercial effectiveness and service quality

9.01% stake

2 board members + 1 executive member

Inbursa Foundation: endowment and joint projects in Mexico.

Client referral: joint corporate lending to Spanish/Mexican companies. Since Feb. 2013, a

CABK senior relationship manager has joined Inbursa’s Corporate Banking division

Preferred Correspondent Bank: joint campaigns in foreign trade products.

Branch Network growth: 326 branches in September 2014 (3x since 2008).

Appointment of a new Commercial Director who coordinates Product and Regional Directors.

Creation of a Quality & Service Department to guarantee proper levels of service.

Implementation of Management Control and Commercial Agenda tools.

9 workshops in Spain with all of Inbursa’s Commercial Managers.

Knowledge transfer in key Retail Banking areas: branch network management, sales-force

effectiveness, product design, data mining, electronic channels and IT management.

Joint innovation in electronic banking, ATMs, point-of-sale.

Strategic Alliance since Oct’08

Retail Business Plan

The Plan has been successfully

implemented despite the crisis

Collaboration extended to Corporate

Banking

Excellent relations further reinforced

Potencial for inorganic growth Inbursa shall become platform for new equity investments in Latin America.

Appendices

75

Refinanced loans

Segment reporting

Ratings





Board of Directors

76

The Internal Relations Protocol between the Banking Foundation “la Caixa” and CaixaBank has as main objectives:

To define the general parameters that are to govern any business or services intragroup

To govern the proper flow of information

(1) Fundación Caja Navarra, Fundación de Carácter Especial Monte San Fernando, Caja General de Ahorros de Canarias and Caja de Ahorros Municipal de Burgos

CaixaBank – Board of Directors and Committees

Corporate Governance

Cajas1

2

Banking Foundation “la Caixa”

8

Executive director

2

Independent directors

6

Proprietary directors

10

Members: 3 • Proprietary (“la Caixa” BF): 1 • Independents: 2

Audit and control

Executive Members: 8 • Executives: 2 • Proprietary (“la Caixa” BF): 4 • Independents: 2

Appointments Members: 3 • Proprietary (“la Caixa” BF): 1 • Independents: 2

Remuneration

Risks

Members: 3 • Proprietary (“la Caixa” BF): 2 • Independent: 1

Members: 5 • Proprietary (“la Caixa” BF): 2 • Independents: 3

Commitees

Appendices

77

Refinanced loans

Segment reporting

Ratings





78

Transaction Summary

CaixaBank (“CABK”) to acquire 100% of shares in Barclays Bank SAU (“BBSAU”) from Barclays PLC in exchange

for cash consideration of €800 MM (1)

BV of BBSAU 2014E of €1.7 Bn. Implies P/BV of 0.47x

Fair Value adjustments estimated at approximately €0.4 Bn post-tax

Restructuring costs of ~€0.3 Bn post-tax

The scope includes 100% of Barclays Bank’s Retail, Wealth and Corporate businesses in Spain, excluding the

investment banking and credit cards businesses

Comprehensive due diligence process successfully completed

Earnings-accretive from year 1 with ROIC already above 10% in 2016

Subject to approvals by Bank of Spain, CNMV and Spanish competition authorities

Expected closing of the transaction in December 2014 / January 2015

(1) Final price and fair value adjustments to be determined post closing based on actual net asset value at 31/12/14.


79

Deal consolidates retail banking leadership in Spain

Latest available information. Peer group includes BBVA Spain (inc RE and pro forma Catalunya Banc), Santander Spain (inc RE), Bankia, Sabadell and Popular. (1) Net loans as shown in H1 2014 interim statements and other public information (2) Includes customer deposits as shown in H1 interim statements and AuMs. Figures for BBSAU include €9.9 Bn deposits and €4.9 Bn AuMs (3) Customer penetration defined as primary banking relationship Source: FRS, Company Information

209 208

164

115 111 102

CABK + BBSAU PF

Peer 1 Peer 2 Peer 3 Peer 4 Peer 5

BBSAU: 18

CABK: 191

BBSAU: 15

CABK: 242

Customer penetration (3) (%) December 2013

23%

14% 11% 10%

6% 3%

CABK + BBSAU PF


1st

Payrolls - Market share (%) December 2013

24%

16%

11% 9%

6% 3%

CABK + BBSAU PF


1st

Net customer loans (1) (€ Bn) June 2014

Customer deposits + AuMs (2) (€ Bn) June 2014 1st 1st

257 237 236

124 122 113

CABK + BBSAU PF



BBSAU: the largest international bank franchise in Spain

BBSAU: key figures (1)

June 2014

Assets

Net loans

Customer Deposits (2)

AuMs (3)

Shareholder funds

Total Capital

Branches (1)

Customers (4)

Employees

€21.6 Bn

€18.4 Bn

€9.9 Bn

€4.9 Bn

€1.7 Bn

14.5%

271

c. 555,000

2,446

(1) Not adjusted for sale of 9 branches to Caja Rural Castilla La Mancha in 2014 (~€350 MM in loans and €150MM in deposits to be transferred). (2) Includes repos (3) Data for BBSAU includes average mutual funds and SICAVs for June 2014 (4) Includes retail banking clients only

80

Domestic Branch Network (1)

June 2014

6 3 4 8

2

1 8

95

2 7

16 29

25

3 33

13

16

<5 5-9 10-24 25-50 >50

271 branches

6%

9%

5%

8%

7%

n.a.

5%

4%

7%

% of Combined

Serves most important economic regions, with a focus on Madrid Ranked 13th by Total Assets


An affluent segment oriented bank with c. 555,000 customers 1

81

In %

74.6% 4.4%

15.9%

Residential Mortgages €14.6 Bn

Other Retail €0.9 Bn

RE Developers €0.9 Bn

Total gross loans €19.6 bn (2)

Loan book breakdown (2)

June 2014

0.4% Public Sector €0.1 Bn

Corporates & SMEs (ex. RE) €3.1 Bn

4.7%

(1) Includes retail banking clients only (2) Not adjusted for sale of 9 branches to Caja Rural Castilla La Mancha in 2014 (~€350 MM in loans and €150MM in deposits to be transferred). (3) Includes €4.3 Bn mutual funds and €0.7 Bn SICAVs

In %

44.6%

17.3%

33.3%

Sight Deposits €6.6 Bn

Total Customer Funds €14.8 bn (2)

Customer Funds breakdown (2)

June 2014

Term Deposits €2.6 Bn

Other Deposits €0.7 Bn 4.9%

AuMs 3

€4.9 Bn


Attractive shareholder value creation

82 82

Earnings accretive from Year 1 onwards

ROIC already above 10% in 2016

Estimated ~€80 MM of Net Income contribution in 2016

Fair Value adjustments mostly associated to credit adjustments and partially compensated by revaluation adjustments

Restructuring costs related to efforts to right-size the combined entity

BBSAU Book value as of 31st December 2014E 1.7

Price of the transaction (1) 0.8

Implied P/BV multiple 2014E 0.47x

FV Adjustments post-tax (1) 0.4

Restructuring costs post-tax 0.3

Key Terms (In Billion Euros)

(1) Final price and FV adjustments to be determined post closing


We expect ~ €150 MM of pre-tax cost synergies by 2016 with an NPV of €0.8 Bn

83 83

70

150

2015E 2016E

Estimated cost synergies of 42% of BBSAU's 1H14 annualised operating expenses

~ €150 MM of annual pre-tax costs savings achieved by 2016

Cost synergies NPV of €0.8 Bn (net of restructuring costs)

Annual pre-tax cost savings target (€ MM)

Significant potential to generate income synergies

Lower cost of customer deposits is a key driver

Cross-selling of insurance products to promote growth in net fee income

CABK’s superior digital banking platform to drive growth in transactional banking and build client loyalty

Access to more convenient distribution network and wider product range to increase loyalty and product penetration


84

CaixaBank will maintain better asset quality than its peer group 1

NPL ratio below the peer average

(1) Peer group includes: BBVA Spain (inc RE but not adjusted for acquisition of Catalunya Banc), Bankia, Bankinter, Popular, Sabadell and Santander Spain (inc RE) (2) Reported NPL and coverage ratios as of June 2014 (3) Calculated including contingent liabilities. BBVA Spain and Santander Spain figures do not include contingent liabilities

NPL ratio (%)

June 2014

NPL coverage (%)

June 2014

NPL coverage above the peer average. Coverage PF post FV adjustments increases

(2) (2)

PF for Transaction and FV Adj.

(2) (2)

(3) (3)


Av. Diagonal, 621 08028 Barcelona

www.CaixaBank.com

[email protected]

+34 93 411 75 03

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