CaixaBank Fixed Income Presentation Data as of June 2015
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 1H 2015 has been prepared mainly on the basis of estimates. 2
1H15 Highlights CaixaBank: Main Figures Leading retail franchise in Spain 11th Eurozone bank Total balance sheet ( Bn) Customer loans and advances ( Bn) Customer funds( Bn) Customers (M), 24% as main bank Market capitalisation( Bn) 1H15 Attributable profit ( M) CET1/Total capital Fully Loaded ratios (%) Ratings 1H15 344.0 211.6 296.4 13.8 24 708 11.5%/14.6% Baa2/BBB/BBB/AL Best-inclass omnichannel platform Employees Branches (#) ATMs (#) Active internet/mobile clients (M) 33,157 5,345 9,724 4.2/2.6 3
1H15 Highlights Returns improve in a normalising environment 1. Operating profit improves further 2. Business volumes in line with prior trends Core operating income 1 grows 17.6% yoy/1.7% qoq NII: +12.6% yoy/-0.6% qoq Net fees stay at record levels: +10.4% yoy/stable qoq Recurrent costs: -0.7% yoy on a like-for-like basis/-1.5% qoq as Barclays synergies kick in Exceptional 2Q trading income offset by extraordinary costs and conservative provisioning approach Consistently good performance in AuM 2 : +26.3% ytd/+1.0% qoq despite volatility Loan book nearing stabilisation: performing loan book (ex RE): +8.9% ytd (-0.2% organically 3 )/+0.8% qoq NIM (133bps) and customer spread (218bps) up qoq despite negative index resets 3. Accelerating normalisation of risk metrics NPLs fall by a record 1.5bn (-7% qoq) and NPL ratio drops to 9.0% (-0.7 pps qoq) Better real estate fundamentals reduce losses on disposals CoR reduced to 88 bps (-3 bps qoq). On track to reach 80 bps guidance for FY2015 4. On course with strategic plan Cost-to-income ratio excluding extraordinary costs drops to 50.8% (-6.8 pps yoy) Voluntary collective dismissal agreement to generate 60M annual cost savings BRS sale signals commitment to meet capital allocation targets Strong capital position maintained: CET1 FL ratio at 11.5% (1) NII + Fees - Recurring Expenses (2) Mutual funds and pension plans (3) As if Barclays Spain had been consolidated at 31 December 2014 4
Strategic Plan 2015-2018 Financial Targets 1 2014 Target From 4 Balance Sheet Performing (ex RE) loan-growth -1.7% +4% LCR ratio >130% >130% 2014-18 CAGR 2015 RoTE 2 3.4% 12-14% 2017 Profitability Cost/Income ratio 56.8% <45% 2018 Cost of risk 95 bps <50 bps 2018 Capital allocated to stakes ~16% <10% 2016 Capital management CET1 FL 11.5% 11-12% 2015 Total Capital FL 14.6% >16% 2016 Shareholder return 3 Cash dividend payout ratio Special dividend and/or share buybacks 50% n/a 50% If CET1 FL >12% 2015 2017 (1) All data pro-forma the Barclays Bank Spain acquisition, except RoTE and loan growth 2014 which are stand-alone CaixaBank. (2) Tangible Equity (TE) is defined as shareholder s equity (exc. valuation adjustments) minus all intangible assets, inc. goodwill. As of Dec 14 intangible assets amounted to 4.95 bn, including: 2.91bn from the banking business; 1.05 bn from the insurance business and 0.99 bn for the banking stakes. As of Dec 14, TE amounted to 23.4bn- 5bn, or 18.4bn. Implied ROE associated with this RoTE target: 10-12% (3) The capital and cash dividend pay-out ratio figures include the pro-forma impact of the 16 February 2015 Board proposal to pay the final 2014 quarterly dividend in cash (4) Ratios apply to year-end, except CET1FL target (throughout) and payout ratio (profit for year in question) 5
Strategic Plan 2015-2018 RoTE to be boosted by improved operating performance and cost of risk normalisation bn Core income: NII+Fees 6% CAGR ~8 6.4 Strong solvency & liquidity RoTE 1 Cost to income 56.8% <45% bn 2014 PF 2018 x4 2014 PF 2018 12-14% 3.4% Capital optimisation C/I ratio, in % Capital consumption of non-controlled stakes as % of total 16% <10% 2014 2017-2018 CoR normalisation 95 <50 bps 2014PF 2016 Value distribution 2014 PF 2018 Sustainable profitability above the cost of capital Note: 2014 data is pro forma the acquisition of Barclays Bank Spain (2014PF) except RoTE data, which corresponds to CaixaBank standalone (1) Breakdown of 4.95 bn of intangible assets as of December 2014: 2.91 bn from the banking business; 1.05 bn from the insurance business and 0.99 bn for banking stakes 6
Increased revenues combined with a lower cost of risk are the key RoTE drivers 1 Strategic Plan 2015-2018 3 Lower provisioning and lower RE losses 1.9% 2 Flat costs 7.3% 1 Higher core revenues 2.9% 1.1% 2.1% 2.1% -6.6% -1.3% 12-14% 3.4% ROTE 2014 (CaixaBank standalone) NII Fees Other income 2 Operating costs Loan loss and other provisions Loss on disposal of RE assets Taxes Accumulated ROTE 2017-2018 equity exceeding 11% target (1) RoTE decomposition by change of contribution of P&L lines (2014 pro forma the acquisition of Barclays Bank Spain) as % of regulatory capital excluding intangibles. The item labelled Accumulated equity exceeding 11% target measures the decrease in RoTE associated with a higher capital base. (2) Other income includes dividends and income from associates, trading income and other income as defined in quarterly reporting. 7
Optimisation of capital allocation Freeing up capital from equity portfolio and real estate exposure Strategic Plan 2015-2018 1 Reduced % capital consumption of the equity portfolio Capital consumption as % of total consumption 1 ~24% ~16% <10% Portfolio transactions 2011: Erste stake 2013: Inbursa stake 2013: MEB Repsol + Growth of the banking business 11% Banking 5% Industrial June 2011 2014 Ambition 2016 2 Further optimisation with the winding down of problematic RE exposure OREO+ RE NPLs (net of provisions), in bn ~11-60% <5 Over the life of the plan 2014 2018 (1) Capital allocation defined as the capital consumption of the investment portfolio over total capital consumption (at 11% target CET1 FL), which amounts to 24.5bn at YE14 All data pro-forma Barclays Bank Spain 8
Strategic Plan 2015-2018 capital management strategy Strategic Plan 2015-2018 Capital generation sufficient to fund core business, targeted payout and to build excess capital Breakdown by source and use (2015-18 cumulative net income=100) 100 Net profit 25 Freeing up capital - RE activity & investments 125 Capital generation 38 Banking and insurance capital requirements 50 Dividend distribution Annual organic capital generation after distributions: 50-70 bps from 2016 onwards 37 Organic excess capital generation over 11% Strong capital generation capacity: o Earnings generation o Capital released from stakes and RE Capital usage: 3.8% CAGR overall credit related RWA growth Target cash dividend payout ratio 50% Maintaining a CET1 ratio above 11% translates into excess capital: Up to 12% would be a buffer: Regulatory bar not settled Room for RWA growth Potential acquisitions Above 12% intention to return to shareholders 9
Competitive stance Our leading market position generates valuable network effects Market leadership Customer penetration by institution 1 20.4% 21.0% 27.4% 2007 2011 2013 2014 24% as primary bank 30,0% 28.2% 25,0% 17.9% 20,0% 13.8% 12.4% 15,0% 7.4% 10,0% Peer 1 Peer 2 Peer 3 Peer 4 Strong market shares across the board Market share by key products Mass retail banking Individuals Corporate AuM Insurance Payment systems 1 Customer penetration 20.4% 28.2% CABK as primary bank Deposits Loans Payroll deposits Pensions deposits Mortgages Consumer loans Corporate penetration 3 SME penetration 3 Factoring & confirming Pension Plans Mutual Funds Savings Insurance Life insurance Health insurance Credit cards turnover POS terminal Turnover 2 2 4 15.6% 9.8% 9.1% 14.4% 12.5% 11.0% 9.9% 45.5% 42.5% 7.3% 12.9% 5.6% 14.1% 9.1% 23.2% 17.6% 17.8% 15.1% 16.5% 24.1% 24.9% 20.3% 17.7% 17.2% 67.0% 44.6% 18.9% 21.0% 17.5% 21.6% 20.0% 26.3% 22.7% 24.8% Rank 1st 1st 1st 1st 1st 1st 1st 1st 3rd 1st 3rd 1st 1st 1st 1st 1st 1st 1st 2007 market share Growth since 07 (1) Spanish customers older than 18 years of age. Peers: BBVA, Banco Santander, Bankia, and Banc Sabadell. (2) Deposit and loan data to the other resident sectors as per Bank of Spain data (3) SMEs: Firms with turnover < 50M. Initial data for 2006 (bi-annual survey). Corporate: firms with turnover > 50 M. Initial data for 2006 (bi-annual survey). (4) Pension plans includes PPI + PPA pension plans. Latest available data. Source: FRS Inmark, Social Security, BoS, INVERCO and ICEA 10
Competitive stance A financial supermarket providing a one-stop shop for lifetime finance & insurance needs Market-leading factories provide revenue diversification and benefits from scope Business Key 2Q 15 figures Company % ownership Life insurance Asset Mngmt. Credit cards Consumer Finance Non-life insurance Payments at point of sale 54.5bn AuM (1) #1 in Spain 50.3 bn AuM #1 in Spain 26.8 bn turnover (2) 14.2 M cards VidaCaixa 100% InverCaixa 100% CaixaCard 100% 1.3 bn Assets 1,008 M new Finconsum 100% business (2) 1.5 bn premia 1H 33.2 bn turnover (2) 293.600 PoS terminals SegurCaixa Adeslas Comercia Global Payments A key competitive advantage to lead to RoTE higher than peers 49.9% 49% 3-4% contribution to total RoTE Ownership preserved throughout the crisis Integrated management of client savings and spending needs Agile time-to-market Flexibility in pricing, packaging and distribution No conflicting views with partners Profitable & very large non-banking leading business (1) Assets under Management (2) 12 months 11
Competitive stance Lead in digital channels further reinforced Digital banking Mobile banking 35% of transactions 4.2 M Active Customers 1 i.e. 40% of overall client base 23% Of transactions 2.6 M Active customers 1 71% of active digital customers are branch clients Fastest growing channel: +65% CAGR 2012-14 by # of transactions Digital channels already very relevant... Transactions by channel 1 (%) 21% 18% 2004 2009 2013 2014 1Q15 2Q15... and remain complementary to the physical channel % of products contracted via digital channels during 1H 6% All products 11% 13% 14% Pension plans Online & mobile Time deposits Consumer loans Branches 23% Mutual funds 58% 7% >50% initiated at the branch but closed via digital channels + Quality + Convenience + Efficiency Recently ranked as the best global mobile banking platform (1) All data as of June 30 2015. Active clients are those defined as per Eurostat definitions with at least one transaction in the last 2 months up to June 30th 2015. 12
Our distribution network is highly efficient from an operational perspective Competitive stance Scalable & very efficient sales-oriented network developed over the last 3 decades % Tasks undertaken by branch network Task absorption (%) % operations by channel 23% Back office 77% Commercial ATMs 76% ATMs 24% Branches Branches 27% PoS and automated Internet 58% 7% ATMs 8% Customers per employee 1 408 255 248 195 140 CABK Peer1 Peer2 Peer3 Peer4 Light-branch that is commercially very effective in a geographically-dispersed country Number of employees/branch Evolution of branch network size Primary bank clients/clients 1 Main reasons for choice of primary bank 1 (%) 14.2 6.5 5.8 2,365 5,206 5,345-2,136 85% 80% 78% 77% 71% Proximity Prescription Payroll/pension Tradition 21.9 19.2 18.9 37.8 European average Average Spanish sector CABK 2007 Acquisitions Integrations 1Q15 CABK Peer1 Peer2 Peer3 Peer4 Service quality Direct debits 15.8 14.7 A high number of branches is an indication of reach and client proximity not a cost driver (1) Retail customers, source: FRS Inmark 2014 Peers: SAN, BBVA, SAB, POP 13
Competitive stance General expenses 1 are low and falling Economies of scale result in significant cost benefits General expenses per branch, Thousand General expenses per employee, Thousand Gral. expenses per employee, Thousand 493 432 389 370 366 234 63 60 50 48 42 38 49-21.5% 38 Extremely competitive general expenses per branch and per employee. Peer5 Peer4 Peer3 Peer2 Peer1 CABK Peer5 Peer4 Peer3 Peer2 Peer1 CABK 2007 2014 Minimal HQ staff HQ staff as % of total employees 2 17% 20% 30% Process simplicity and a culture of cost efficiency contributes to a minimal HQ structure 6% CaixaBank Acquisition 1 Acquisition 2 Acquisition 3 (1) Including amortisations and extraordinary operating expenses (2) Source: own estimates as of December 2014 for CaixaBank and as of the acquisition date for the acquired entities (Banca Cívica, Banco de Valencia and Barclays) 14
Commercial activity Asset mix shift continues as clients adjust to low rates Client funds breakdown Falling time-deposit remuneration drives clients In Billion Euros I. Funds on balance sheet Demand deposits 30 th June 214.2 109.6 YTD 3.3% 17.1% Organic YTD 2 (0.8%) 9.2% qoq 1.1% 7.8% 1H15 Client funds organic change YTD, in Billion Euros 9.2 7.7 2.3 0.1 Time deposits 3 66.8 (11.6%) (13.4%) (5.4%) Subordinated liabilities 3.3 (0.3%) (0.3%) (0.3%) -10.3 Insurance 32.3 0.1% 0.1% 0.2% Demand deposits Mutual funds Insurance & pension plans Other Time deposits 3 Other funds 2.2 (13.7%) (21.9%) (46.4%) II. Off-balance sheet funds 82.2 Mutual funds 4 50.3 Pension plans 22.2 Other managed resources 5 9.7 Total client funds 296.4 27.5% 34.3% 11.1% 38.0% 9.1% 15.0% 18.0% 11.1% 9.3% 3.1% 1.3% 1.2% 0.6% 3.1% 1.2%.towards AuM and cheaper sight deposits AuM inflows of 2.7bn 1 remain high during 2Q despite recent market volatility Demand deposits positively impacted by quarterend seasonal payroll effects Low market penetration of wealth management products in Spain supports further growth in AuM (1) Mutual fund and pension fund 2Q15 inflows (excludes valuation effects) (2) As if Barclays Spain had been consolidated at 31 December 2014 (3) Includes retail debt securities (4) This category includes SICAVs and managed portfolios besides mutual funds. (5) Includes regional government debt and subordinated debt issued by Criteria Caixaholding as well as 1.7bn of outsourced pension plans and insurance contracts from Barclays 15
Commercial activity Market leadership in AuM and life insurance reflects capillarity and strong advisory capabilities Asset management Life insurance and pension plans Market leadership grows: 50.3 bn AuM 1 New leader in pension plans: 22.2 bn AuM Mutual funds market share by AuM (%) #1 #1 +220 bps in 6 months 10.6% 12.2% 14.0% 14.1% 15.3% Peer 16.7% 17.5% Peer 15.7% Pension plan market share by AuM (%) +160 bps in 6 months 16.2% 16.3% 16.5% 17.4% 19.4% Peer 20.4% 21.0% Peer 19.6% 2010 2011 2012 2013 2014 Jun-15 Growing twice as fast as sector with 1/3 of net inflows Mutual Funds AuM organic 2 growth yoy vs sector (Jun 15) 2010 2011 2012 2013 2014 Jun-15 Three times the growth rate of the sector Pension Plans AuM organic 2 growth yoy vs sector (Jun 15) 22% x2 40% 7% x3 24% Sector InverCaixa Sector VidaCaixa Ownership of market leading product factories provides key competitive advantage (1) Mutual funds, client portfolios and SICAVs. (2) Excludes the AuM contribution from Barclays Spain Source: INVERCO 16
Commercial activity Loan-book nearing stabilisation Loan-book breakdown In Billion Euros, gross amounts Deleveraging tapering off Performing loans ex RE, organic % change YTD 3 30 th June YTD Organic YTD 1 qoq -0.2% I. Loans to individuals 124.9 12.1% (0.8%) 0.4% -2.2% Residential mortgages home purchases 91.5 13.7% (2.2%) (1.1%) Other 2 33.4 8.0% 3.2% 4.7% -7.7% II. Loans to businesses 72.0 (0.4%) (4.6%) (2.8%) 1H13 1H14 1H15 Corporates and SMEs 59.0 3.9% (0.5%) (1.1%) Real Estate developers 11.6 (17.4%) (21.5%) (10.7%) Criteria CaixaHolding 1.4 (0.4%) (0.4%) (0.5%) Loan volume benefits from quarter-end seasonality (pension advances of 1.5bn) Loans to individuals & businesses III. Public sector 196.9 14.7 7.2% 8.2% (2.2%) 7.7% (0.8%) 8.0% Underlying trend of stabilisation unchanged: performing loan book (ex-re) grows 0.8% qoq Flat qoq with 1.5bn seasonal adjustment Total loans Performing loans (ex RE) 211.6 186.3 7.3% 998.9% (1.6%) (0.2%) (0.2%) 0.8% Bulk of deleveraging still concentrated in RE developers: -11% qoq (1) As if Barclays Spain had been consolidated at 31 December 2014 (2) The Other Loans to individuals category includes pension prepayments which are seasonally higher in June by 1.5 bn. (3) 1H15 as if Barclays Spain had been consolidated at 31 December 2014; 1H13 as if BdV had been consolidated at 31 December 2012 17
Financial results Continuing improvement in operating profitabilty Consolidated income statement (Barclays Spain consolidated from 1 st January) In Million Euros Net interest income Net fees and commissions Income from investments & associates Gains on financial assets & impact of FX Other operating income & exp. Gross income Recurring expenses 1H15 2,270 1,027 492 696 79 4,564 (2,053) 1H14 2,015 930 224 513 68 3,750 (1,888) yoy (%) 12.6 10.4 119.4 36.0 15.2 21.7 8.8 qoq (%) (0.6) 0.3 74.5 337.7 n/a 33.8 (1.5) Good operating performance Solid growth in NII and fee levels stabilises in 2Q Recurrent cost base down qoq (-1.5%) as Barclays synergies kick in Extraordinary expenses related to the voluntary collective dismissal agreement in June ( 284 M) Pre-impairment inc. w/o extr. expenses Extraordinary operating expenses Pre-impairment income Impairment losses & others 2,511 (541) 1,970 (1,439) 1,862 0 1,862 (1,314) 34.8 n/a 5.8 9.5 73.5 n/a 90.3 (7.7) Exceptional trading gains Due to active management of ALCO portfolio Gains/losses on assets disposals & others 1 Pre-tax income Income tax Profit for the period 26 557 152 709 (102) 446 (41) 405 n/a 24.9 n/a 75.1 n/a 64.6 n/a (11.1) Conservative provisioning Recurring credit provisions broadly in line with 1Q - to moderate in 2H Minority interests Profit attributable to the Group 1 708 0 405 n/a 75.0 n/a (11.1) Prudent provisioning approach offsets high trading income Note: The 2014 income statement has been restated following the application of IFRIC 21 (1) 2015 includes, among others, 602M of badwill from the Barclays Spain acquisition (including fair value adjustments of the assets and liabilities of Barclays); 64M of asset impairment due to asset obsolescence associated with the Barclays Spain acquisition; gross profit of 38M from the sales of Boursorama and Self Trade; losses on RE sales and non-recurring charges to provisions for foreclosed assets. 2014 includes, mainly, losses from the sale of foreclosed assets 18
Continued improvement in core operating profitability in banking and insurance P&L Banking & Insurance segment (ex non-core RE 1 ) Financial results In Million Euros Banking & insurance Consolidated income statement In Million Euros Net interest income Net fees Other income Gross income Expenses - recurring Expenses - extraordinary Pre-impairment income Impairment losses & others Gains/losses on disposals &others Income tax Net profit 2 1T 2T 1H 1T 2T 1H 1,211 1,206 512 513 229 727 1,952 2,446 (1,009) (992) (239) (302) 704 1,152 (282) (587) 482 (65) (91) (152) 813 347 2,417 1,138 1,025 513 956 302 4,398 1,953 (2,001) (1,035) (541) (239) 1,856 679 (869) (748) 417 280 (243) 164 1,160 375 1,132 2,270 514 1,027 965 1,267 2,611 4,564 (1,018) (2,053) (302) (541) 1,291 1,970 (691) (1,439) (254) 26 (12) 152 333 708 Average own funds, Billion Adjusted RoTE 3 (%) 17.9 14.2% 23.8 7.6% Double-digit core banking RoTE shows bank is on track to meet its strategic plan targets RE losses partially offset by normalised contribution from the investments segment (1) From 1H15 the non-core RE segment includes primarily non-core RE developer loans (mainly NPL and substandard) and foreclosed RE assets (2) Profit attributable to the Group. The impact of minority interests was null in 1Q and - 1M in 2Q (3) Banking & Insurante RoTE calculation: annualised return figures and average tangible own funds for the period. Segment ROTE calculation excludes one-off impacts related to the Barclays Spain acquisition, such as the badwill or restructuring costs, as well as the cost of the collective dismissal agreement booked in 2Q 19
Financial results Funding cost benefits continue to absorb NII headwinds Funding costs offset asset yield pressure NII, in Million Euros +12.6% 1H15: 2,270 Stable customer spread In % 3.04 3.08 3.00 3.00 2.80 2.70 1H14: 2,015 993 1,022 1,059 1,081 1,138 1,132 1.21 1.07 0.91 0.83 0.64 0.52 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15-0.6% 1.83 2.01 2.09 2.17 2.16 2.18 NIM stable despite negative index resets In bps 121 124 127 129 132 133 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 +1 bp 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Loans and credits Customer funds 1 Stable margins on falling funding costs: declining term deposit costs maturing wholesale issuance a shift into cheaper sight deposits TLTRO funding Customer spread (1) The cost of customer funds reflects the cost of both demand and time deposits, as well as repos with retail clients. Excludes the cost of institutional issuance and subordinated liabilities. 20
Financial results Funding costs continue to decline Significant room for improvement on deposit BB pricing back vs. front book (bps) Back book Front book 204 184 163 152 121 102 110 77 58 48 36 24 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Wholesale funding improvement set to continue Static wholesale funding back book evolution 1 in billion and spread over 6M Euribor in bps, as of June 30 th 2015 200 42.3 173 38.1 164 33.9 143 26.1 Volume Spread 132 20.3 Dec'14 Jun'15 Dec'15 Dec'16 Dec'17 Pricing of new term deposit production close to bottoming at these levels Continued shift into sight deposits enables further reduction in cost of client funding Maturities in billion 1 ; spread over 6M Euribor in bps, as of June 30 th 2015 Amount Spread 2H 2015 4.2 bn 240 2016 2017 7.8 bn 5.8 bn 236 180 (1) Excludes self-retained bonds. Wholesale funding figures in the 1H Financial Report reflect the Group s funding needs and as such do not include ABS securities and self-retained multi-issuer covered bonds, unlike this Figure, which depicts the impact of wholesale issuances in funding costs 21
Financial results Retail front book contributes positively to loan yields Front book widening reflects higher weight of retail and SMEs and strict pricing of wholesale in 2Q Loan book yields, in bps 404 376 Back book Front book 272 253 272 308 300 300 280 270 Loan yields mainly impacted by index resets Drivers of back book yield evolution, in bps -10 bps - 6 bps Euribor repricing - 3 bps front book - 1 bps other 2Q14 3Q14 4Q14 1Q15 2Q15 Retail front book still accretive to the back book Impact of front book on back book yields in the quarter % of new lending by segment Front book yield, bps Impact of new lending on Back Book yield, bps Total +19-3 1Q15 2Q15 Retail & SMEs 1 57 70-16 +3 Wholesale 1 43 30 +9-14 (1) The wholesale banking book includes lending to large corporates and the public sector, whereas the loan retail book includes the remaining segments 22
Financial results ALCO book rotation in a higher-yielding bond environment ALCO fixed income portfolio 1 evolution In Billion Euros -46% ALCO portfolio: yield and average life In % and years 44.0 42.3 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 11.2 10.5 36.5 7.8 32.1 6.7 23.6 Yield 3.4% 3.4% 3.4% 3.4% 3.6% Average life 2.6y 2.5y 3.1y 3.1y 3.4y 6.4 32.8 31.8 28.7 25.4 17.2 Positioned for a rate-rise early in quarter by sale of long-duration bonds at average yield of 1.2%. Jun'14 Sep'14 Dec'14 Mar'15 Jun'15 2015 NII growth guidance revised to mid-single digits from high single digits Sovereign bonds Other -26% (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. The sovereign bond portfolio is made up mostly of Spanish and Italian government bonds. 23
Financial results In Million Euros Record fee levels maintained Fee income Banking & other fees In Million Euros +10.4% In Million Euros -5.7% 1H14: 930 1H15: 1,027 513 514 312 349 328 454 476 444 451 4Q14 1Q15 2Q15 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Mutual funds fees In Million Euros +14.9% +0.3% 72 96 111 Growth in managed funds 1 fees offsets seasonality in wholesale banking fees Mutual fund fee growth driven by higher AuM and sustained shift to actively managed funds 2015 guidance revised upwards to double-digit growth rate 4Q14 1Q15 2Q15 Insurance & pension plan fees In Million Euros +10.0% 67 68 75 4Q15 1Q15 2Q15 (1) Managed funds refers to mutual funds and pension plans 24
Financial results Operating cost reduction set to accelerate as Barclays synergies kick in Recurring costs down qoq and yoy on like-for-like basis Operating costs evolution, in Million Euros YoY QoQ Synergies from acquisitions in Million Euros 2,067 179 1 Barclays -0.7% 2,594 541 2,053 Recurring qoq Earlier estimate Actual 625 652 708 83 783 102 775 150 844 163 681 681 625 625-1.5% 1,888 1,035 1,018 2014 2015e 2016e Total costs 1H14 (PF Barclays) Total costs 1H15 Extraord. Recurring 1H15 2014 2015 1Q15 2Q15 Synergies from Barclays Spain acquisition ( 102M 2015E) began to kick in 2Q ( 1/4 of total expected for the year) 2Q voluntary redundancy scheme (700 employees) key to achieve flat recurring cost base (1) Reported by Barclays Bank Spain in 1H14 25
Financial results On track for delivery of strategic plan cost saving targets Cost-income on track... Cost-to-income ratio excluding extraordinary expenses in %, expenses and income in Million Euros (trailing 12 months) -6.8 pp...underpinned by early delivery of cost saving targets Annual gross cost savings envisaged in 2015-2018 Strategic Plan In Million Euros 450 57.6% 56.8% 54.4% 54.7% 50.8% 6,622 6,631 6,940 7,067 7,754-3,812-3,763-3,773-3,863-3,938 2Q14 3Q14 4Q14 1Q15 2Q15 Expenses Income C/I ratio <45% Target From 2018 163 Barclays Spain (Total expected synergies from 2016) 60 Q215 collective dismissal (expected synergies from 2016) H1 2015 measures: 50% of targeted savings 227 Savings from pending actions Target annual cost savings by 2018 Target: 450 M annual gross cost savings by 2018 2,200 departures foreseen in the 2015-18 Strategic Plan o/w 700 agreed in 2Q15 975 Barclays Spain staff departures already agreed in 1Q15 26
Core operating income growth supported by revenue and cost progression Financial results Steady core operating income progression NII + Fees - Recurring Expenses, in Million Euros aided by revenue generation and cost control Profit attributable to the Group, in Million Euros +17.6% 1H15: 1,244 1H14: 1,057 555 565 585 616 628 502 1,057 255 97 165 1,244 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 +1.7% Core op. Income 1H14 NII Fees Costs Core op. Income +12.6% +10.4% -0.7% 1 1H15 (1) Recurring expenses up 8.8% yoy, down -0.7% on a like-for-like basis 27
Financial results Reduced CoR despite conservative 1H provisioning approach Downward trend in Cost of Risk 1 confirmed In % Recurring credit provisioning down 12% yoy 2 In Million Euros, yoy -12.0% 1.24% 1.18% 610 441 422 550 537 1.00% 0.91% 0.88% 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15-2.5% On track to reach full year guidance of 80 bps......on expectation of lower provisioning charges during coming quarters (1) Ratio of trailing twelve months loan-loss provisions over total gross customer loans plus contingent liabilities as of the end of the period (2) Measures the yoy change between 2Q15 and 2Q14 28
Asset quality Accelerating the pace of NPL reduction NPL stock and ratio 1 Stock in Billion Euros, ratio in % NPL Coverage ratio Stock of provisions in Billion Euros, ratio in % 10,8% 22.6 10,5% 21.4 9,7% 9,7% 9.0% 59% 58% 55% 54% 54% -10.9% 13.3 12.4 22.3 21.6 Barclays 20.1 11.1 11.7 10.9 20.1 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15-6.9% NPLs fall by a record 1.5bn driven by continuing wind-down of RE developer loan-book NPL ratio down to 9.0% (240 bps below sector) High NPL coverage ratio level stable at 54% -well above 1Q peer average of 50% 2 (1) NPL ratio is the ratio of NPLs to total gross customer loans and contingent liabilities as of at the end of the period (2) Internal estimate. Peer group includes: Santander Spain, BBVA Spain, Bankia, Banco Sabadell and Banco Popular 29
Asset quality Maintaining a high pace of reduction in real estate exposure RE developer loans In Billion Euros, gross amounts Net non-performing RE assets 1 In Billion Euros, net of provisions Gross non-performing (NPL + substandard) Performing 16.7 15.6 10.5 9.5-30% 14.1 14.8 8.3 8.9 13.0 7.6 11.6 6.6 Net RE developer non-performing loans (NPL + substandard) Net OREO portfolio 11.7 11.5-13% 10.6 11.0 10.7 10.3 5.0 4,5 3.9 4.1 3.7 3.3 6.3 6.1 5.8 5.9 5.4 5.0 6.7 7.0 6.7 6.9 7.0 7.0 2Q14 3Q14 4Q14 4Q14 1Q15 2Q15 PF Barclays Non-performing loan coverage ratio in % -11% 52% 52% 53% 54% 52% 51% 2Q14 3Q14 4Q14 4Q14 1Q15 2Q15 OREO coverage ratio 2, in % PF Barclays -4% 53% 53% 55% 57% 57% RE developer NPLs continue to be wound-down via foreclosures and sales to investors (0.5 bn in 2Q15 3 ) Non-performing RE assets drop organically 4 due to higher provisioning and disposals. (1) OREO portfolio and problematic RE developer loans, both net of provisions (2) Loan equivalent coverage ratio, i.e. includes write-downs on conversion to OREO (3) 0.5bn is the gross book value of the sales, i.e. the net book value is lower by an amount equal to the provisions associated to the portfolio (4) As if Barclays Spain had been consolidated at 31 December 2014 30
Asset quality Better real estate fundamentals improve rate of losses on disposals Net repossessed RE assets Net amount in Million Euros, coverage ratio in % Commercial activity In Million Euros, trailing 12 months RE assets from loans for construction and RE development Coverage ratio 1 59% Finished buildings 2,540 49% 2,289 2,346 Land Buildings under construction 369 2,034 67% 62% 1,677 1,052 1,016 Rentals RE assets from households Other repossessed Rental 739 1,327 49% 54% Occupancy ratio 3,062 87% 886 791 1,236 1,330 Sales 2 Total RE assets for sale (net): 7bn 57% 2Q13 2Q14 2Q15 Progressive stabilisation of the housing market facilitates pace of disposals and reduces associated losses Closer to break-even on sales of RE assets in 2Q (-5%) (1) Loan equivalent coverage ratio, i.e. includes write-downs on conversion to OREO (2) Revenue of RE sales 31
Solvency Stable CET1 FL ratio as capital buildup offsets one-offs and market evolution CET1 ratio evolution In %, ytd Dec 14 +126 bps 12.1% -78 bps 11.5% +18 bps Barclays Bank acquisition Capital generation June 15 12.8% Capital ratios In % as of June 30, 2015 Phase-in Fully Loaded Total Capital 15.7% 14.6% qoq +86 bps +17 bps Leverage ratio 5.7% 5.1% qoq +16 bps -9 bps CET1 12.8% 11.5% Fully loaded Fully loaded Phase-in qoq +67 bps +6 bps CET1 16.7 bn 16.7bn 18.9 bn RWAs 137.6 bn 144.7 bn 147.6 bn QoQ CET1 FL ratio evolution: +6 bps Organic capital generation 1 remained strong at 33 bps Supported by BRS sale (+19 bps) and IRB rollout for assets from Barclays Spain acquisition (+19 bps)... offset by one-offs : -19 bps from the voluntary collective dismissal -46 bps other non-recurring items 2, attributable mainly to higher sovereign bond yields (1) Includes retained earnings gross of a) the expenses associated with the voluntary collective dismissal; and b) the profit associated with the sales of BRS and Self Trade (2) Includes the impact of valuation adjustments; changes in the amount of CET1 deductions ; changes to RWAs (not related to the Barclays Spain IRB roll out) and others 32
Liquidity and Funding Comfortable liquidity metrics Ample liquidity with comfortable LtD ratios... and stable funding structure Total liquidity, in Billion Euros Financing structure, % of total 50.0 19.2 30.8 Mar 15 54.0 27.5 26.5 Jun 15 Balance sheet liquidity 1 Unused ECB discount facility 16.3 Bn drawndown ECB facility: (TLTRO) 46% 236.5 Bn Total 9% 15% 30% Retail funding: Demand deposits Retail funding: time deposits & other 3 Wholesale funding Net interbank deposits and ECB Loan to deposits 2 ratio evolution, in % 104% 111% 109% Improving liability mix: growing client funding at the expense of wholesale funding 2Q TLTRO take-up of 2.0 bn LCR and NSFR ratios comfortably above target Dec'14 Mar'15 Jun'15 (1) Banking liquidity: includes cash, interbank deposits, accounts at central banks and unencumbered sovereign bonds (2) Defined as: gross loans ( 211,559 M) net of loan provisions ( 10,419 M) (total loan provisions excluding those corresponding to contingent guarantees) and excluding pass-through funding from multilateral agencies ( 6,001M) / retail funds (deposits, retail issuances) ( 179,756 M) (3) Other includes: subordinated and retail debt securities 33
Presence in wholesale markets with a 10y Covered Bond at a record low yield Liquidity and Funding Issuer Rating * Deal Size Issuance date Maturity Spread Coupon Spanish Covered Bond Issues in 2015 Spanish Senior Unsecured Issues in 2015 Issuer Rating Deal Size Issuance date Maturity Spread Coupon M/S&P/F Banco Popular Ba3/-/BB+ 500 12/01/2015 3 MS+177 2,000% Issuer Deal Rating * Deal Issuance Issuance Maturity Spread Coupon Spanish IssuerTier2 Rating * Size Maturitydate Spread Coupon Size M/S&P/F date Issues in 2015 Santander Baa2/BBB-/BBB+ 1.500 04/03/2015 18/03/2025 MS+190 2,500% M/S&P/F Ibercaja B2/B/BB 500 21/07/2015 10NC5 MS+455 5,000% BBVA A1/-/- 1.250 12/01/2015 7 MS+25 0,750% Caja Rurales Unidas -/BBB-/BBB+ 750 16/01/2015 Deal Issuance 7 MS+90 1,250% Loss Issuer Rating * Maturity Coupon Trigger Bankinter Aa2/A/- 1.000 27/01/2015 Size date 10 MS+38 absorption 1,000% Caja Rural de Navarra A1/-/- 500 03/03/2015 7 MS+14 0,500% Spanish AT1 M/S&P/F CaixaBank Issues in 2015 A1/A/- 1.000 18/03/2015 10 MS+15 0,625% Equity Banco Popular Banco Baa1 Popular Ba3/B+/BB+ 1.000 24/03/2015 750 04/02/2015 10 PerpNC5 MS+50 conversion 1,000% 8,250% 7,000% Banco Sabadell BBVA A3 Baa2/BBB/A- 750 29/05/2015 1.500 10/02/2015 5 PerpNC5 MS+12 Equity 0,375% 6,750% 5,125% * Ratings at the issuance date. M/S&P/F BBVA A1/-/- 1.250 12/01/2015 7 MS+25 0,750% Caja Rurales Unidas -/BBB-/BBB+ 750 16/01/2015 7 MS+90 1,250% Bankinter Aa2/A/- 1.000 27/01/2015 10 MS+38 1,000% Caja Rural de Navarra A1/-/- 500 03/03/2015 7 MS+14 0,500% CaixaBank A1/A/- 1.000 18/03/2015 10 MS+15 0,625% Banco Popular Baa1 1.000 24/03/2015 10 MS+50 1,000% Banco Sabadell A3 750 29/05/2015 5 MS+12 0,375% Banco Popular Aa2/-/- 1.250 21/07/2015 5,2 MS+37 0,750% Bankinter Aa2/A/- 1.000 23/07/2015 7 MS+23 0,875% Bankia -/A/A- 1.250 28/07/2015 7 MS+45 1,125% * * conversion 34
Liquidity and Funding Institutional Caixabank Issues: Maturity Profile 8.000 7.000 6.000 6.891 INSTITUTIONAL DEBT OUTSTANDING 1 : 32.884 Mn 5.000 4.801 4.846 4.000 3.000 2.967 2.701 3.239 2.000 2.133 1.352 1.000 400 1.054 981 610 450 228 53 20 158 - Senior Debt (includes GGB) Covered Bonds Subordinated debt/preferred Stock Other (1) Data in Million, excluding ABS, retained issues and exchangeable Rep Nov 16, and including debt in subsidiaries balance sheet. Source: CaixaBank 35
Final remarks 1H 2015 takeaways Core operating income improves further AuM growth outperforming industry Stable customer spread Higher trading income offset by one-offs Delivering on cost-efficiency plans CoR on track to meet 2015 YE guidance +17.6% yoy +26.3% ytd +2 bps qoq +36.0% yoy -6.8 pp yoy 88 bps Strong capital position maintained 11.5% CET1 FL Setting the base for the future while delivering on operating results 36
Barclays Spain fully integrated in just 4.5 months Appendix - Integration of Barclays Spain Key figures once consolidated as of Jan 15 1 A successful acquisition 455,000 retail customers o.w. 165,000 in Private and Affluent Banking 1.4 M current accounts 1 M time deposit & mutual fund contracts 500,000 credit cards 33.4 Bn business volume Improves competitive position in key segments and regions Cost synergies expected at 163 M from 2016 (48% of initial cost base) Proven integration track record Better than anticipated results Time span between closing and full IT integration 2008 2010 2011-12 2012-13 2014-15 Spain 10 months 6 months 4 months Bank Spain 6 5 4.5 months 2 months months 2015 cost synergies revised upwards (from 83 M to 102 M) 2016E ROIC >15% vs. 10% initial target Swift integration improves size and timing of synergies (1) Restated figures following the completion of the Barclays Spain IT integration, as per CaixaBank s criteria (2) Time it took to complete the first of the 4 sequential integrations associated with the BCIV acquisition 37
Appendix Covered Bonds CaixaBank Covered Bonds Program - Highlights Rated by Moody s and S&P: Moody s Investors Service Aa2 High quality collateral & strong overcollateralization Low risk profile: mortgage portfolio prudently managed 76% of residential loans, out of which: 92% with LTV < 80% 90% First home Solid OC levels A Total OC: 245% -> and flexibility to optimize our collateral: 22,8 bn of retained Covered Bonds Legal OC: 134% Comfortably above the legally required ratio (125%)..Despite following eligibility criteria stricter than legal Remaining Issuing Capacity: 6,7 Bn (mortgage & public sector CB) Always aiming to the best market standards Covered Bond Label Compliant since 1st January 2013 Transparency: complete quarterly information available in our web page: http://www.caixabank.com/inversoresinstitucionales/inversoresrentafija_en.html 38
Mortgage Covered Bond Programme Spanish Public Sector Covered Bond Programme CaixaBank Covered Bonds Programmes - Main figures Jun '15 Appendix Covered Bonds MORTGAGE COVER POOL 30/06/2015 MORTGAGE COVERED BONDS 30/06/2015 Cover Pool Size (mill ) 126.557 Outstanding nominal (mill ) 51.719 Residential Assets 96.324 76,1% OC (total) 245% Comercial Assets 30.233 23,9% Elegible Pool (mill ) 69.460 OC (legal - eligible portfolio) 134% Number of loans 1.451.565 Issuing Capacity (mill ) 3.849 Average loan Balance ( ) 87.187 Average Maturity (years) 5,87 WA Seasoning (years) 7,7 yrs RATINGS WA Remaining Term (years) 18,6 yrs WA LTV 54,2% Moody's Aa2 WA LTV Elegible Pool 46% S&P A PUBLIC SECTOR COVER POOL Cover Pool Size (mill ) 30/06/2015 14.473 Number of loans 6.367 Average loan Balance ( ) 2.273.049 WA Seasoning (years) 3 yrs WA Remaining Term (years) 6,3 yrs PUBLIC SECTOR COVERED BONDS 30/06/2015 Outstanding nominal (mill ) 7.300 OC 198% Issuing Capacity 2.831 Average Maturity (years) 4,1 RATINGS Moody's Aa2 Issuing capacity & Collateral type Remaining Issuing Capacity 6.680 Mn Collateral by Type 10,3% Public Sector CB; 2.831 21,4% Mortgages CB; 3.849 68,3% Residential Commercial Public Sector 39
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2031 2037 2038 2048 CaixaBank Mortgage Covered Bond Programme Jun '15 Appendix Covered Bonds Remaining Issuing Capacity Data in million Mortgages Mortgages Public Sector Total Collateral for Covered Bonds 126.557 Total Collateral for Covered Bonds Eligible 145,758 Portfolio 69.460 11,659 Elligible Portfolio 101,130 11,659 In Billion Total Collateral (Mortgages+Public Sector) Elegible vs nonelegible 113 bn 157 bn 57,1 44 bn REMAINING ISSUING CAPACITY: 3.8 Bn Data in Million Maturity Profile Cédulas Hipotecarias 8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 0 Cédulas Hipotecarias Cédulas Territoriales Used Collateral 64.649 Used Collateral 99,199 9,571 Covered Bond Issued Amount 51.719 Covered Bond Issued Amount 79,359 6,700 Over Collaterization Over Collaterization (**) 245% 184% 174% Available Collateral Available Collateral 1,932 4.811 2,087 REMAINING ISSUING REMAINING CAPACITY ISSUING (*) CAPACITY 1,545 (*) 3.849 1,461 Mn (*) Issuing Capacity= 80% of Collateral Available for C. Hipotecarias and 70% for C. Territoriales (**) Due to the early amortisation of 3 Bn of retained cedulas on April 15th, OC ratio is currently higher 1.158 2.919 1.283 5.800 2.164 269 3.908 1.551 3.977 Max. CB Issuance Outstanding CBs 2.103 2.701 175 379 1.312 126,6 Total Collateral 649 2.495 1.000 300 2.919 981 1.389 3.239 3.000 0 E L I G I B L E 89,1 bn 86,1 bn 69,5 3,006 Available Issuing Capacity Eligible vs noneligible 2.800 1.900 0 0 x 80% 228 53 20 Max. CB Issuance Total Covered Bonds -> 51.719 Mn Public -> 28.919 Mn Retained -> 22.799 Mn 3,8 3 bn I Remaining 55,6 s s 51,7 Issuing u Capacity e d Outstanding CBs vs Remaining Issuing Capacity Public Issues Retained Issues 40
OC Evolution CaixaBank Mortgage Covered Bond Programme Jun '15 Appendix Covered Bonds 160.000 160,000 140.000 140,000 120.000 120,000 100.000 100,000 80.000 80,000 Decision of generating additional collateral for the ECB credit facility to anticipate any potential deterioration in markets 249% 262% 178% 181% 259% 252% 187% Banca Cívica integration 249% 183% 186% 187% 178% Retained Covered Bonds Amortizations 224% 237% 259% 181% 187% 183% BBSAU integration 255% 251% 254% 186% 187% OC Legal 134% 300% 300% 245% 250% 224% 250% 200% 200% 150% 150% 60.000 60,000 40.000 40,000 20.000 20,000 100% 100% 50% 50% - 0% Q1 Q1 '12 '11 Q2 '12 Q2 '11 Q3 '12Q3 '11Q4'12 Q4 '11 Q1'13 Q1 Q2'13 '12 Q3'13 Q2 '12 Q4'13 Q3 '12 Q1'14 Q4'12Q2'14 Q1'13 Q3'14 Q2'13 Q4'14 Q1'15 Q3'13 Q2'15 Q4'13 Total Total Collateral Collateral for Covered for Covered Bonds Bonds (mill (mill ) ) Covered Covered Bonds Bonds Issued Issued Amount Amount (mill ) (mill ) Retained Retained issues issues OC (%) OC (%) 0% Active and prudent collateral management, focus on adding value to investors TOTAL OC: 245% OC comfortably above the legally required ratio LEGAL OC: 134% 41
CaixaBank Mortgage Covered Bond Programme Jun '15 Appendix Covered Bonds RESIDENTIAL ASSETS Cover Pool Description Main figures Total Mortgage Loans (ex securitization) ( k) 96.323.666 WA LTV (%) 54,6% Number of loans 1.281.330 First Rank 94,1% Average Loan balance ( ) 75.175 Floating Rate loan Interest Rate type: 99,3% Number of Borrowers 1.099.058 WA Interest Rate (Floating Rate loans) 2,0% Number of properties 1.359.039 WA Interest Rate (Fixed Rate loans) 5,1% WA Seasoning in months 95,4 7,9 yrs WA Remaining term in months 245,9 20,5 yrs Portfolio Breakdown Unindexed LTV Ranges Distributions Total Loan Balance (ex sec) k 0-40% 22.014.093 22,9% >40%- 50% 14.733.887 15,3% >50%- 60% 18.867.479 19,6% >60%- 70% 20.917.704 21,7% >70%- 80% 12.510.745 13,0% >80%- 85% 2.910.033 3,0% >85%- 90% 2.018.575 2,1% >90%- 95% 1.037.859 1,1% >95%- 100% 511.021 0,5% >100%- 105% 228.507 0,2% >105% 573.764 0,6% 96.323.666 % 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% 92% of the loans with LTV < 80% 22,9% 19,6% 15,3% < 12 3,8% 21,7% 13,0% 3,0% Seasoning 2,1% 92% of the pool with LTV <80% 1,1% 0,5% 0,2% 0,6% Seasoning (months) k % 12-<24 2,6% < 12 3.657.213 3,8% 12-<24 2.462.737 2,6% 24-<36 3.249.444 3,4% 36-<60 11.106.606 11,5% 60 75.847.666 78,7% Total: 96.323.666 24-<36 36-<60 60 3,4% 11,5% 78,7% 42
RESIDENTIAL ASSETS Property type k % First Home 87.003.629 90,3% Second Home 7.278.717 7,6% Not Owner occupied 1.130.355 1,2% Other 910.965 0,9% Total: 96.323.666 Loan Purpose k % Adquisition 62.617.449 65% Re-mortgage 17.440.768 18% Equity release 4.213.979 4% Rehabilitation 5.566.012 6% New construction 4.174.603 4% Other 2.310.855 2% Total: 96.323.666 CaixaBank Mortgage Covered Bond Programme Jun '15 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 70% 60% 50% 40% 30% 90% 8% First Home Second Home Not Owner occupied 65% Appendix Covered Bonds 1% 1% First home loans represent 90% of the residential pool Other Regional Distribution k % Catalonia 26.704.010 27,7% Andalusia 16.587.257 17,2% Madrid 13.511.818 14,0% Valencia 7.577.658 7,9% Canary Islands 6.084.329 6,3% Balearic Islands 3.851.309 4,0% Castile León 3.532.283 3,7% Castile La Mancha 3.057.908 3,2% Navarra 2.927.908 3,0% Basque Country 2.707.742 2,8% Murcia 2.476.278 2,6% Galicia 2.011.432 2,1% Aragon 1.660.434 1,7% Cantabria 869.608 0,9% Extremadura 820.931 0,9% Asturias 749.358 0,8% Others/ No info 632.167 0,7% La Rioja 468.613 0,5% Ceuta 73.040 0,1% Melilla 19.585 0,0% Total: 96.323.666 20% 10% 0% 18% 4% 6% 4% Adquisition Re-mortgage Equity release Rehabilitation New construction Other Acquisitions led to a more diversified regional distribution of the assets > 20% Between 10% - 20% Between 5% - 10% Between 3% - 5% Between 1% - 3% < 1% 2% 43
CaixaBank Mortgage Covered Bond Programme Jun '15 Appendix Covered Bonds COMMERCIAL ASSETS Cover Pool Description Main figures Total Mortgage Loans (ex securitization) ( k) 30.233.230 WA LTV (%) 52,9% Number of loans 170.235 Floating Rate loan Interest Rate type: 96,5% Average Loan balance ( ) 177.597 WA Interest Rate (Floating Rate loans) 2,6% Number of Borrowers 89.356 WA Interest Rate (Fixed Rate loans) 5,1% Number of properties 215.931 WA Seasoning in months 80,9 6,7 yrs WA Remaining term in months 150,0 12,5 yrs Portfolio Breakdown Unindexed LTV Ranges Distribution Total Loan Balance (ex sec) k % 35% 30% 32,5% 0-40% 9.823.450 32,5% >40%- 50% 4.705.453 15,6% >50%- 60% 5.179.466 17,1% >60%- 70% 4.224.315 14,0% >70%- 80% 2.659.575 8,8% >80%- 85% 793.747 2,6% >85%- 90% 672.530 2,2% >90%- 95% 486.044 1,6% >95%- 100% 469.856 1,6% >100%- 105% 386.733 1,3% >105% 832.062 2,8% Total: 30.233.230 Property Type k % Offices 1.493.042 4,9% Commercial stores 5.503.856 18,2% Industrial 2.998.820 9,9% Hotel 1.662.730 5,5% Flats & Houses 6.566.879 21,7% Land 3.107.527 10,3% Mixed Use 5.948.054 19,7% Others 2.952.322 9,8% Total: 30.233.230 25% 20% 15% 10% 5% 0% 25% 20% 15% 10% 5% 0% 4,9% 15,6% 17,1% 14,0% 18,2% 9,9% 8,8% 5,5% 2,6% 2,2% 1,6% 1,6% 1,3% 2,8% 21,7% 10,3% 19,7% Offices Commercial stores Industrial Hotel Flats & Houses Land Mixed Use Others RE (Flat & Houses) assets steadily declining 9,8% 44
CaixaBank Mortgage Covered Bond Programme Jun '15 Appendix Covered Bonds COMMERCIAL ASSETS Portfolio Breakdown Loan Maturity (yrs) k % 5 5.448.145 18,0% >5-10 7.701.554 25,5% >10-15 6.366.640 21,1% >15-25 8.627.187 28,5% >25-50 2.089.703 6,9% Total: 30.233.230 5 >5-10 >10-15 18,0% 21,1% 25,5% Regional Distribution k % Catalonia 6.344.464 21,0% Andalusia 5.733.824 19,0% Madrid 5.130.587 17,0% Canary Islands 2.744.989 9,1% Valencia 2.278.303 7,5% Basque Country 1.316.514 4,4% Balearic Islands 1.256.578 4,2% Castile León 994.934 3,3% Castile La Mancha 899.364 3,0% Navarra 759.475 2,5% Murcia 607.724 2,0% Others/ No info 575.290 1,9% Aragon 494.500 1,6% Galicia 442.715 1,5% Extremadura 231.123 0,8% Cantabria 180.340 0,6% Asturias 126.138 0,4% La Rioja 85.679 0,3% Ceuta 24.152 0,1% Melilla 6.536 0,0% Total: 30.233.230 100% >15-25 >25-50 6,9% > 20% Between 10% - 20% Between 5% - 10% Between 3% - 5% Between 1% - 3% < 1% 28,5% 45
2016 2017 2018 2019 2020 2021 CaixaBank Public Sector Covered Bond Programme Jun '15 Appendix Covered Bonds Remaining Issuing Capacity Data in million Mortgages Public Sector Public Sector Total Collateral for Covered Bonds 14.473 Total Collateral for Covered Bonds Eligible 145,758 Portfolio 14.473 11,659 Elligible Portfolio 101,130 11,659 Cédulas Hipotecarias Cédulas Territoriales Cédulas Territoriales Used Collateral 10.429 Used Collateral 99,199 9,571 Covered Bond Issued Amount 7.300 Covered Bond Issued Amount 79,359 6,700 Over Collaterization (**) Over Collaterization 184% 198% 174% In Billion Total Collateral (Mortgages+Public Sector) Elegible vs nonelegible Max. CB Issuance Outstanding CBs 14,5 89,1 bn 86,1 bn 157 bn 113 bn x 70% 10,1 44 bn I s 3 bn s Remaining u Issuing e Capacity d REMAINING ISSUING CAPACITY: 2.8 Bn 2,8 7,3 Available Collateral Available Collateral 1,932 4.044 2,087 REMAINING ISSUING REMAINING CAPACITY ISSUING (*) CAPACITY 1,545 (*) 2.831 1,461 Mn (*) Issuing Capacity= 80% of Collateral Available for C. Hipotecarias and 70% for C. Territoriales (**) Due to the early amortisation of 3 Bn of retained cedulas on April 15th, OC ratio is currently higher Data in Million Maturity Profile 2.500 3,006 Available Issuing Capacity Total Collateral Max. CB Issuance Outstanding CBs vs Remaining Issuing Capacity 2.000 1.500 Total Covered Bonds -> 7.300 Mn Public -> 88 Mn Retained -> 7.212 Mn 1.000 500 0 Public Issues Retained Issues 46
CaixaBank Public Sector Covered Bond Programme Jun '15 Appendix Covered Bonds Cover Pool Description Main figures Total Loans (ex securitization) ( k) 14.472.504 Floating Rate loan Interest Rate type: 84,5% Number of loans 6.367 WA Interest Rate (Floating Rate loans) 2,19% Average Loan balance ( ) 2.273.049 WA Interest Rate (Fixed Rate loans) 1,92% Number of Borrowers 1.715 Average exposure to borrowers ( ) 8.438.778 WA Remaining term in months 75 6,3 yrs WA Seasoning in months 35 3 yrs Portfolio Breakdown Loans Maturity Loan Maturity k % < 12 4.292.195 30% 12-<24 406.373 3% 24-<36 624.482 4% 36-<60 1.581.975 11% 60 7.567.478 52% Total: 14.472.504 < 12 12-<24 3% 30% 24-<36 4% Loans in Arrears % 36-<60 11% <2m 0,09% 2m - <6m 0,11% 6m - <12m 0,02% 12m 0,94% 60 52% 47
Appendix - Ratings CaixaBank Credit Ratings Long term Short term Outlook Rating of covered bond program Moody s Investors Service 1 Baa2 P-2 stable Aa2 2 BBB A-2 stable A 3 BBB F2 positive - 4 A (low) R-1 (low) stable - (1) As of 17/06/15 (2) As of 22/06/15 (3) As of 25/02/15 (4) As of 10/02/15 48
Appendix Investment portfolio Investment Portfolio FINANCIAL STAKES Stake Consolidated carrying amount 1 Of which Goodwill 1 /Share % Bn Bn BEA 17.2% 2.2 0.6 4.86 BPI 44.1% 0.9-1.38 Erste 9.9% 1.1-25.62 Inbursa 9.0% 0.9 0.3 1.54 NON-FINANCIAL Telefónica 5.2% Repsol 11.7% (1) Consolidated carrying amount of equity of the different entities, attributable to the CaixaBank Group, net of write-downs. Goodwill, net of write-downs Data as of June 30, 2015 49
Appendix Refinanced loans Refinanced loans As of June 30, 2015 Performing Substandard NPL Total bn qoq bn qoq bn qoq bn qoq Individuals 5.7 +23% 0.9 +18% 3.1 +19% 9.6 +21% Businesses (ex-re) including the self employed 2.4-37% 0.9 +39% 3.2-12% 6.4-20% RE Developers 0.8-18% 0.4-23% 2.5-7% 3.7-11% Public Sector 1.3 +47% 0.2-3% 0.0-44% 1.5 +36% Total 10.3-1% 2.2 +13% 8.8-2% 21.3 +0% Of which: Total Non-RE 9.4 +1% 1.9 +24% 6.3 +1% 17.6 +3% Provisions 0.4 +17% 3.4 +0% 3.9 +1% 50
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