Annual. Annual Report. Report

Annual Annual Report Report

2009 Annual Report

Bankinter Annual Report 2009 Chairman's Letter 2 LetterChairman's Letter Pedro Guerrero Chairman of the Board of Directors I should like to begin my comments by reflecting on the difficult economic situation our business has faced over the past year. The sharp slowdown experienced by the global economy since the summer of 2008 culminated in 2009 with the worst recession since the second world war, causing, among other things, a global lack of confidence which led to moments of critical liquidity. The serious difficulties faced by the global financial system and the sharp decline in business throughout the world led central banks to make drastic cuts in interest rates. Likewise, in various countries monetary authorities and governments applied additional measures to inject liquidity to mitigate the deterioration in the interbank markets and credit markets in general, thanks to which they stabilised somewhat in the course of 2009. As far as Spain is concerned, the crisis was reflected in a drop in GDP of around 3.6%, the worst in more than 50 years, and a very big increase in unemployment, the consequence above all of our high dependence on the property sector, one of the sectors worst hit by the crisis. Despite this difficult environment, 2009 was a historic year for Bankinter results if we compare ourselves with the competition; this past year we profited from the differentiation of our business model and lower risk profile, posting a net profit of EUR 254.4 million, with growth of 0.8%. Modest growth, to be sure, but absolutely exceptional in a financial year in which listed domestic banks posted an average fall in net profit of 24%. These results are even more impressive if we take into account the fact that they are based entirely on recurring earnings, meaning we have managed to keep intact the unrealised capital gains inherent in our balance sheet which form part of the Bank's intangible assets, contrasting with the generation of extraordinary income which, in the system a whole, was needed to offset high costs of arrears and writedowns.

Bankinter Annual Report 2009 3 Chairman's Letter All the information on our income statement is described in full in this Report, so I shall not go into detail, although I would like to highlight a few figures that reflect just how different Bankinter is. The Bank has a risk profile that is much lower than that of the rest of the sector, as shown by its 2.46% non performing loans ratio (half the average), an insignificant level of exposure to the property development sector, of just 2.5% of total loan investments, approximately one seventh of the 17.6% average in the system, and consequently a level of foreclosed property assets of just EUR 326 million, also extremely low in comparative terms. It is also worth highlighting the fact that in the residential mortgage business, the Bank's non performing loan ratio is 1.27%, approximately one third of the average, which clearly shows the quality of Bankinter's mortgage portfolio. Likewise, the non performing loans coverage ratio is 74% (one of the highest in the system), while allowances made for the possible impairment of foreclosed property assets already totals 20% of their book value, meaning a cover of 46% vis-à-vis its appraised value. The lower rate of non performing loans, the limited exposure to the property development sector and the strength of our allowances make Bankinter more resistant to the cycle, something which, alongside the lower losses expected from the loan portfolio, bear witness to our adequate solvency levels, with a capital ratio of 10.41% and surplus capital of EUR 757 million. I should now like to take a moment to express my heartfelt thanks to all of your for the extraordinary support which you gave during this past year to the Bank's capital increase, which was carried out with great success, being fully subscribed during the preferential subscription period without needing to be underwritten. The EUR 361 million capital increase served to finance the acquisition of the 50% of Línea Directa Aseguradora that was held by the Royal Bank of Scotland, giving us full ownership of a company which, with 1,600,000 policies, more than 1,200,000 customers and pre-tax profits of close to EUR 100 million a year, offers Bankinter significant possibilities for marketing synergies and a great opportunity for business growth.

Bankinter Annual Report 2009 4 Chairman's Letter In relation to this operation, I should like to make some remarks on the solvency of the Bank. Capital consumption involved in the acquisition of Línea Directa Aseguradora, calculated in accordance with Bank of Spain rules, is close to 100% of the net amount disbursed for the purchase, which is why, despite the capital increase, capital ratios remain stable. However, this capital is invested in an extremely profitable and solvent asset which improves the group's risk diversification, as well as its growth expectations. Apart from purely financial and typical business variables, Bankinter has a number of other competitive advantages which, despite not appearing expressly in the financial statements, make Bankinter a company which is admired and respected in the European financial sector. These include our advanced corporate governance policy, an area in which we continue to apply the most demanding standards, making us one of the most prestigious of listed companies. Corporate Responsibility, Bankinter's way of thinking and acting, our relationships with our stakeholders and, in short, the management of our intangibles - these are the key factors that set us apart as a company. Our most valuable assets are our staff. Our workforce is young, with an average age of 37, well educated (73.8% are graduates), enthusiastic and motivated to do new things, with initiative, talent, pride and a sense of belonging. In short, our workforce is happy to be working for a company like Bankinter, which was again selected as one of the best places to work by the Great Place to Work Institute, and was the only financial institution and the only Ibex35 company to be included in this list. In terms of our relationship with our customers, we strive constantly to provide a quality service, something which is part of our DNA as a service company. I should point out that Bankinter continues to exhibit service quality ratios way above our competitors, especially among individuals, where we are 4.8 above the market average in the NSI (Net Satisfaction Index). I also take this opportunity to mention some of the prizes awarded to the Bank in areas relating to our support for the most disadvantaged sectors of society, for society in general and also for the environment. Not for nothing are we considered, according to the GS Sustain index, as the best Bank in terms of responsible environmental management. This year we were awarded the Tecnet 2009 prize for Corporate Social Responsibility for the project creating IT classrooms in retirement homes managed by Sanitas Residencial; and one of the National Prizes awarded by

Bankinter Annual Report 2009 5 Chairman's Letter the Federación Nacional de Parapléjicos y Grandes Discapacitados Físicos (ASPAYM), for "universal accessibility and design for all", for our projects in favour of the integration of the disabled, including full access to the Bank's website and network of branches. In terms of our relationship with society, the business world, universities and entrepreneurs, we have always acted in accordance with our values, supporting innovation and talent as a driver for change and progress. Accordingly the Bankinter Foundation for Innovation continues to be one of the best examples of the Bank's aspirations. This is a different type of Foundation - open, multidiscipline and participative, which seeks to encourage innovation in our entrepreneurial and educational environment, as the only advantage sustainable over time, and as a model of behaviour in which we can all see ourselves reflected. That's all. I would just like to say that the new financial year, which will be challenging, will also be full of opportunities for the Bank, as it ushers in a new era in which honesty, responsibility, prudence, best practice, quality of service, and the ability to innovate will be the definitive benchmark values in the financial world. And it is precisely in these areas that Bankinter is strongest. You may rest assured that, in such an environment, we shall succeed in generating value for all of you, and that as Chairman I will put all my efforts and enthusiasm into achieving this. Many thanks

Bankinter 2009 Annual Report 6 Consolidated balance sheets as at 31 December 2009 and 2008 ASSETS 2009 2008(*) LIABILITIES AND EQUITY 2009 2008(*) CASH AND BALANCES WITH CENTRAL BANKS 505,265 382,134 LIABILITIES TRADING PORTFOLIO 3,584,841 2,228,130 TRADING PORTFOLIO 1,491,165 797,327 Deposits with credit institutions - - Central banks' deposits - - Loans to customers - - Credit institutions' deposits - - Debt securities 2,852,908 1,516,905 Customer deposits - - Equity instruments 110,335 43,556 Debts represented by negotiable securities - - Trading derivatives 621,598 667,669 Trading derivatives 611,866 635,520 Memorandum items Lent or pledged 1,969,940 1,036,226 Short security positions 879,299 161,807 Other financial liabilities - OTHER FINANCIAL ASSETS AT FAIR VALUE WITH CHANGES TAKEN INTO PROFIT & LOSS 16,361 9,186 Deposits with credit institutions - - OTHER FINANCIAL ASSETS AT FAIR VALUE WITH CHANGES TAKEN INTO PROFIT & LOSS 278,727 605,053 Loans to customers - - Central banks' deposits - - Debt securities - - Credit institutions' deposits - - Equity instruments 16,361 9,186 Customer deposits 278,727 605,053 Memorandum items Lent or pledged - - Debts represented by negotiable securities - - Subordinated liabilities - - FINANCIAL ASSETS AVAILABLE FOR SALE 3,345,065 5,601,227 Other financial liabilities - - Debt securities 3,254,182 5,541,170 Equity instruments 90,883 60,057 FINANCIAL LIABILITIES AT AMORTISED COST 48,985,541 49,584,542 Memorandum items Lent or pledged 1,483,368 3,858,674 Central banks' deposits 2,208,200 5,435,283 Credit institutions' deposits 5,374,913 5,820,452 LENDING 43,669,718 44,093,832 Customer deposits 21,782,602 22,914,328 Deposits with credit institutions 3,786,135 3,197,265 Debts represented by negotiable securities 17,971,994 13,833,521 Loans to customers 39,883,583 40,896,567 Subordinated liabilities 1,117,817 867,220 Debt securities - - Other financial liabilities 530,016 713,738 Memorandum items Lent or pledged 626,720 947,059 ADJUSTMENTS TO FINANCIAL LIABILITIES FOR MACRO-HEDGING - - INVESTMENT PORTFOLIO HELD TO MATURITY 1,621,669 - HEDGE DERIVATIVES 65,010 161,158 Memorandum items Lent or pledged 689,056 - LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS FOR SALE - - ADJUSTMENTS TO FINANCIAL ASSETS FOR MACRO-HEDGING 9,754 64,147 INSURANCE LIABILITIES 625,620 - HEDGE DERIVATIVES 189,987 145,210 PROVISIONS 75,888 135,554 NON-CURRENT ASSETS FOR SALE 238,017 50,468 Pension funds and similar obligations 129 39 Provisions for taxes and other legal contingencies - - ASSOCIATES 34,678 197,161 Provisions for contingent risks and commitments 29,742 34,048 Associates 33,303 23,104 Other provisions 46,017 101,467 Multigroup enterprises 1,374 174,057 TAX LIABILITIES 228,784 103,057 INSURANCE AGREEMENTS LINKED TO PENSIONS - - Current 65,075 34,343 Deferred 163,710 68,714 RE-INSURANCE ASSETS 13,495 - OTHER LIABILITIES 133,838 117,932 TANGIBLE ASSETS 475,636 395,325 Property, plant, and equipment 452,645 391,826 For own use 440,137 377,103 Leased out on operating lease 12,508 14,723 Real-estate investments 22,991 3,499 Memorandum items acquired under finance lease - - TOTAL LIABILITIES 51,884,573 51,504,623 INTANGIBLE ASSETS 377,043 13,851 NET WORTH Goodwill 161,837 - Other intangible assets 215,207 13,851 EQUITY 2,553,003 1,963,372 Capital 142,034 121,768 TAX ASSETS 246,055 217,461 Registered 142,034 121,768 Current 106,275 24,636 Less: uncalled capital - - Deferred 139,780 192,825 Share premium 737,082 395,932 Reserves 1,524,484 1,326,197 OTHER ASSETS 139,880 71,495 Retained earnings (accumulated losses) 1,504,864 1,214,112 Inventories - Retained earnings (accumulated losses) of entities accounted for under the equity method 19,620 112,085 Other 139,880 71,495 Other equity instruments - - Compound financial instruments - - Cuotas participativas (non-voting shares in Spanish savings banks) and associated funds - - Other equity instruments - - Less: own securities (538) (44,016) Results for the year attributable to the controlling entity 254,405 252,289 Less: dividends and remunerations (104,464) (88,798) VALUATION ADJUSTMENTS 29,888 1,632 FINANCIAL ASSETS HELD FOR TRADING 29,774 1,524 Cash flow hedging - - Hedging of net investments in foreign businesses - - Exchange differences 114 108 NON-CURRENT ASSETS FOR SALE - - Entities valued under the equity method - - Other valuation adjustments - - MINORITY INTERESTS - - VALUATION ADJUSTMENTS - - Other - - TOTAL ASSETS 54,467,464 53,469,627 LIABILITIES AND SHAREHOLDERS' EQUITY 54,467,464 53,469,627 MEMORANDUM ITEMS CONTINGENT RISKS 2,263,430 2,489,821 CONTINGENT COMMITMENTS 9,209,725 8,147,578 (*) Shown solely for purposes of comparison

Bankinter 2009 Annual Report 7 Consolidated Income Statement (Debit) Credit 2009 2008 (*) INTEREST 1,672,477 2,595,295 INTEREST EXPENSE AND SIMILAR CHARGES (879,898) (1,921,928) INTEREST MARGIN 792,579 673,367 RETURN ON EQUITY INSTRUMENTS 10,934 7,643 SHARE IN RESULTS OF ENTITIES ACCOUNTED FOR UNDER THE EQUITY METHOD 16,234 45,945 FEE & COMMISSION INCOME 270,726 302,937 FEE &COMMISSION EXPENSE (68,493) (76,877) RESULTS OF FINANCIAL OPERATIONS (net) 63,513 36,029 TRADING PORTFOLIO 68,020 41,827 OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT & LOSS 958 (15,291) OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT & LOSS (2,852) 4,232 Other (2,613) 5,261 FOREIGN EXCHANGE DIFFERENCES (net) 25,275 66,700 OTHER OPERATING INCOME 470,458 29,461 Income from insurance and reinsurance policies issued 445,334 - Income from sales and provision of non-financial services - - Other operating income 25,124 29,461 OTHER OPERATING EXPENSES (336,044) (31,707) Expenses relating to insurance and reinsurance policies (300,359) - Change in inventory levels - - Other operating expense (35,686) (31,707) GROSS INCOME 1,245,182 1,053,498 ADMINISTRATIVE EXPENSES (578,825) (497,829) Personnel expenses (325,040) (260,877) Other general administrative expenses (253,786) (236,952) DEPRECIATION AND AMORTISATION (53,463) (32,935) PROVISIONING EXPENSE (NET) (29,628) 6,251 IMPAIRMENT LOSSES ON FINANCIAL ASSETS (NET) (220,502) (192,512) Loans and receivables (218,705) (185,727) Other financial instruments not at fair value through profit or loss (1,797) (6,785) OPERATING INCOME 362,764 336,473 IMPAIRMENT LOSSES ON OTHER ASSETS (net) (10,562) (570) Goodwill and other intangible assets (10,561) - Other assets (1) (570) GAINS (LOSSES) ON DISPOSAL OF ASSETS NOT CLASSIFIED AS NON-CURRENT FOR SALE (5,270) 1,066 NEGATIVE DIFFERENCE ON BUSINESS COMBINATIONS - - GAINS (LOSSES) ON NON-CURRENT ASSETS FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS (991) - PROFIT OR LOSS BEFORE TAX 345,941 336,969 INCOME TAX (91,536) (84,680) PROFIT (LOSS) FROM CONTINUING OPERATIONS 254,404 252,289 PROFIT (LOSS) FROM DISCONTINUED OPERATIONS (net) - - CONSOLIDATED EARNINGS FOR THE YEAR 254,404 252,289 Profit (loss) attributable to the controlling entity 254,404 252,289 Profit (loss) attributable to minority interests - (*) Shown solely for purposes of comparison

Bankinter 2009 Annual Report 8 Consolidated statement of changes in equity Consolidated statements of recognised income and expenses for the financial years ended 31 December 2009 and 2008 (EUR 000s) Financial year 2009 Financial year 2008 (*) CONSOLIDATED EARNINGS FOR THE YEAR 254,404 252,289 B) OTHER RECOGNISED INCOME AND EXPENSES 28,256 34,193 FINANCIAL ASSETS HELD FOR TRADING 40,360 48,907 Valuation gains (losses) 47,778 37,890 Amounts transferred to the profit and loss account (7,418) 11,017 Other reclassifications - - Cash flow hedging - - Valuation gains (losses) - - Amounts transferred to the profit and loss account - - Amounts transferred to the initial carrying amount of hedged items - - Other reclassifications - - Hedging of net investments in foreign businesses - - Valuation gains (losses) - - Amounts transferred to the profit and loss account - - Other reclassifications - Exchange differences 6 (266) Valuation gains (losses) 13 (267) Amounts transferred to the profit and loss account (7) 1 Other reclassifications - - NON-CURRENT ASSETS FOR SALE - - Valuation gains (losses) - - Amounts transferred to the profit and loss account - - Other reclassifications - - Actuarial gains (losses) in pension plans - - Entities valued under the equity method - - Valuation gains (losses) - - Amounts transferred to the profit and loss account - - Other reclassifications - - Other recognised income and expenses - INCOME TAX (12,110) (14,448) TOTAL RECOGNISED INCOME AND EXPENSES (A + B) 282,660 286,482 C 1) Attributable to the controlling entity 282,660 286,482 C 2) Attributable to minority interests - - (*) Shown solely for purposes of comparison

Bankinter 2009 Annual Report 9 Consolidated cash flow statements for the financial years ended 31 December 2009 and 2008 (EUR 000s) 2.009 2008 A) NET CASH FLOW FROM OPERATIONS 1,465,178 (307,697) 1. CONSOLIDATED EARNINGS FOR THE YEAR 254,404 252,289 2. Adjustments for non-cash items 584,856 218,724 2.1 Depreciation and amortisation 531,393 32,935 2.2 Other adjustments 53,463 185,789 3. Net increase/decrease in operating assets 582,993 (4,418,055) 3.1 Trading portfolio (1,356,711) (558,265) OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (7,175) 17,259 3.3 Financial assets held for trading 1,995,893 (1,828,521) 3.4 Loans and advances 51,844 (1,940,628) 3.5 Other operating assets (100,858) (107,900) 4. Net increase/decrease in operating liabilities 116,507 3,694,290 4.1 Trading portfolio 684,799 (130,109) OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (326,326) 605,053 4.3 Financial liabilities at amortised cost (872,953) 3,052,924 4.4 Other operating liabilities 630,987 166,422 5. Income Tax (+/-) (73,582) (54,945) B) CASH FLOW FROM INVESTMENT ACTIVITIES (1,580,380) (69,635) 6. Payments (1,615,959) (150,025) 6.1 Tangible assets (143,430) (130,786) 6.2 Intangible assets (273,102) (19,201) 6.3 Equity holdings in associates (6,349) (38) 6.4 Subsidiaries and other business units - - 6.5 Non-current assets and associated liabilities for sale - - 6.6 Investment portfolio held to maturity (1,193,078) - 6.7 Other payments linked to investment activities - - 7. Receipts 35,579 80,390 7.1 Tangible assets 26,122 69,293 7.2 Intangible assets 9,457 11,097 7.3 Equity holdings in associates - - 7.4 Subsidiaries and other business units - - 7.5 Non-current assets and associated liabilities for sale - - 7.6 Investment portfolio held to maturity - - 7.7 Other receipts linked to investment activities - - B) CASH FLOW FROM FINANCING ACTIVITIES 238,333 (187,020) 8. Payments (154,334) (221,920) 8.1 Dividends (130,442) (119,569) 8.2 Subordinated liabilities 0 (67,464) 8.3 Redemption of own equity instruments 0-8.4 Acquisition of own equity instruments (5,596) (26,702) 8.5 Other payments linked to financing activities (18,296) (8,185) 9. Receipts 392,668 34,900 9.1 Subordinated liabilities - 9.2 Issuance of own equity instruments 361,416-9.3 Disposal of own equity instruments 31,252 34,900 9.4 Other receipts linked to financing activities - - D) EFFECT OF EXCHANGE-RATE VARIATIONS - - E) NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D) 123,131 (564,352) F) CASH AND CASH EQUIVALENTS AT START OF PERIOD 382,134 946,486 G) CASH AND CASH EQUIVALENTS AT END OF PERIOD 505,265 382,134 MEMORANDUM ITEMS: G) BREAKDOWN OF CASH AND CASH EQUIVALENTS AT END OF PERIOD 505,265 382,134 1.1 Cash 97,933 135,300 1.2 Cash equivalents with central banks 406,938 246,295 1.3 Other financial assets 394 539 1.4 Less: Bank overdrafts payable at sight - - Total cash and cash equivalents at end of period 505,265 382,134 of which: in possession of consolidated entities but not available to group (*) Shown solely for purposes of comparison

Bankinter Annual Report 2009 10 Consolidated statement of changes in equity (continued) Consolidated statement of changes in equity for the financial years ended 31 December 2009 and 2008 (Thousands of euros) EQUITY ATTRIBUTABLE TO THE CONTROLLING ENTITY Capital Issue premium RESERVES Accumulated reserves (losses) Equities EQUITY Less: Own securities Results for the financial year attributable to the controlling entity Less: dividends and remunerations VALU- ATION ADJUST- MENTS TOTAL NON-CON- TROLLING INTER- ESTS 1. Balance as at 31 December 2008 121,768 395,932 1,326,197 - -44,016 252,289-88,798 2,075,457 1,632 1,965,004-1,965,004 1.1. Adjustments for changes to accounting criteria Total net worth 1.2 Adjustments for errors - 2. Adjusted start balance 121,768 395,932 1,326,197 - -44,016 252,289-88,798 2,075,457 1,632 1,965,004-1,965,004 3. Total recognised income and expenses 254,404 254,405 28,256 282,661 4. Other changes in equity 20,266 341,150 198,288-43,478-252,289-15,666 335,227-335,227-335,227 4.1. Capital increases 20,266 341,150-6,046 - - - - 355,370-355,370-355,370 4.2. Capital reductions - - - - - - - - - - - - 4.3. Conversion of financial liabilities into capital - TOTAL NET WORTH - - - - - - - - - - - - 4.4. Increases in Equities - - - - - - - - - - - - 4.5. Reclassification of financial liabilities to Equities 4.6. Reclassification of Equities to financial liabilities 4.7. Distribution of dividends/ remuneration of shareholders - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -135,954-135,954 - -135,954 - -135,954 4.8. Operations with Capital instruments (net) - - -12,822-43,478 - - 30,656-30,656-30,656 4.9. Transfer between equity headings - - 132,001 - - -252,289 120,288 - - - - - 4.10. Increases (reductions) from business mergers - - 83,667 - - - - 83,667-83,667-83,667 4.12. Payments with Capital instruments - - - - - - - - - - - - 4.13. Other increases (reductions) in net worth - - 1,487 - - - - 1,487-1,487-1,487 5. Final Balance as at 31 de December de 2009 142,034 737,082 1,524,484 - -538 254,404-104,464 2,665,087 29,888 2,582,890-2,582,890

Bankinter Annual Report 2009 11 Consolidated statement of changes in equity Consolidated statement of changes in equity for the financial years ended 31 December 2009 and 2008 (Thousands of euros) Capital Issue premium Accumulated reserves (losses) EQUITY ATTRIBUTABLE TO THE CONTROLLING ENTITY (*) Equities EQUITY Less: Own securities Results for the financial year attributable to the controlling entity Less: dividends and remunerations Total net worth VALU- ATION ADJUST- MENTS TOTAL NON-CON- TROLLING INTER- ESTS TOTAL NET WORTH (*) 1. Final Balance as at 31 de December de 2007 119,063 342,534 1,086,443 11,165-55,754 361,863-87,336 1,777,978-32,561 1,745,417-1,745,417 1.1. Adjustments for changes to accounting criteria - - - - - - - - - - - - 1.2 Adjustments for errors - - - - - - - - - - - - 2. Adjusted start balance 119,063 342,534 1,086,443 11,165-55,754 361,863-87,336 1,777,978-32,561 1,745,417-1,745,417 3. Total recognised income and expenses - - - - - 252,289-252,289 34,193 286,482-286,482 4. Other changes in equity 2,705 53,398 239,754-11,165 11,738-361,863-1,462-66,895 - -66,895 - -66,895 4.1. Capital increases - - - - - - - - - - - - 4.2. Capital reductions - - - - - - - - - - - - 4.3. Conversion of financial liabilities into capital 2,705 53,398 - -11,165 - - - 44,938-33,773-67,546 4.4. Increases in Equities - - - - - - - - - - - - 4.5. Reclassification of financial liabilities to Equities 4.6. Reclassification of Equities to financial liabilities 4.7. Distribution of dividends/ remuneration of shareholders - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -120,288-120,288 - -240,576 - -481,152 4.8. Operations with Capital instruments (net) - - -2,450-11,738 - - 9,288-18,576-39,602 4.9. Transfer between equity headings - - 243,037 - - -361,863 118,826 - - - - -243,037 4.10. Increases (reductions) from business mergers - - - - - - - - - - - - 4.12. Payments with Capital instruments - - - - - - - - - - - - 4.13. Other increases (reductions) in net worth - - -833 - - - - -833 - -1,666 - -2,499 5. Balance as at 31 December 2008 121,768 395,932 1,326,197 - -44,016 252,289-88,798 1,963,372 1,632 1,965,004-1,965,004 (*) Shown solely for purposes of comparison

Bankinter Annual Report 2009 12 1. Quality Management > Bankinter Quality > Service that is different > Quality in private individuals: > Quality in SMEs > Quality in handling incidents > Quality and internal customers > Taking action to improve quality Quality 1Management Quality of service is one of the fundamental points on which Bankinter's success is based. For individuals, in 2009 the Bank achieved an overall satisfaction score of 74,45 points, 4,8 points above the market average. Alejandra Marrupe, Quality Consultant

Bankinter Annual Report 2009 13 1. Quality Management > Bankinter Quality > Service that is different > Quality in private individuals: > Quality in SMEs > Quality in handling incidents > Quality and internal customers > Taking action to improve quality In 2009, Bankinter customers showed high levels of satisfaction with the products and services received from the Bank. Bankinter's quality reflects the trust of our customers. Quality of service is one of the fundamental points on which Bankinter's success is based, and is reflected in the results of customer surveys. In 2009, Bankinter customers showed high levels of satisfaction with the products and services received from the Bank. This measurement is carried out on a monthly basis by independent companies, whose data give us an in depth knowledge of each segment, distribution network and service platform with which the customer may interact at any time, as well as of each office or centre with which customers deal. These measurements of customer perceptions are completed and contrasted with a large number of objective indicators, which enable the specific measurement of lead-times and the quantification of any incidents occurring during each process. Through internal surveys we check that, from both the branch network and central services, we are offering an exceptional service, with all internal systems and processes systematically conforming to quality models. Bankinter would particularly like to thank all its customers for the time and care they have spent in responding to our surveys, which means we can find out what their needs are and, as far as possible, anticipate them. A market analysis is also performed periodically, in the Private Individuals and SME segments, with the aim of ascertaining Bankinter's position in relation to its competitors and identifying the service factors that set us apart.

Bankinter Annual Report 2009 14 1. Quality Management > Bankinter Quality > Service that is different > Quality in private individuals: > Quality in SMEs > Quality in handling incidents > Quality and internal customers > Taking action to improve quality Overall satisfaction by segment 2009 (NSI out of 100) Personal Finance 76.7 Private individuals Private Banking 74.8 Foreign customers A different Bank with customers that demand better service. Bankinter measures customer satisfaction through monthly surveys, in each of the various segments to which it offers a differential service (Personal Finance, Private Banking, Individuals, Foreigners, SMEs and Corporate Banking), in the distribution networks through which customers operate (branch network, network of agents, virtual offices, telephone banking and online banking offices), as well as through the service platforms through which our customers interact with the Bank (telephone banking, broker, mobile, individual and corporate online banking platforms). This satisfaction is measured through the Net Satisfaction Index (NSI), in which scoring ranges from 0 to 100, interpreted as follows: > 85 Very satisfied, or excellent service. 75-85 High level of satisfaction. 60-75 Needs improvement. <60 Needs action. As can be seen in the graphs, both in segments and networks as well as in service platforms, quality ratios approach and on occasions exceed 75 NSI points. Any mark above 75 shows a high quality of service. 73.5 81.8 Overall cumulative satisfaction by segment at December 2009 (NSI out of 100) SMEs 71.9 Corporate Banking 77.0 2007 2008 2009 Personal Finance 77.57 76.66 Private Banking 76.95 75.76 74.78 Private individuals 77.14 75.13 73.47 Foreign customers 83.12 82.52 81.82 SMEs 76.70 74.87 71.87 Corporate Banking 77.72 75.85 77.01 84 82 80 78 76 74 72 70 2007 2008 2009

Bankinter Annual Report 2009 15 1. Quality Management > Bankinter Quality > Service that is different > Quality in private individuals: > Quality in SMEs > Quality in handling incidents > Quality and internal customers > Taking action to improve quality Overall cumulative satisfaction by networks at December 2009 (NSI out of 100) 2007 2008 2009 Branch network 77.44 75.56 74.03 Telephone banking 73.64 72.51 72.73 office Online banking office 78.22 75.98 74.64 Virtual Offices 77.40 77.23 77.38 Branch network 79.63 75.67 73.00 80 78 76 74 72 70 2007 2008 2009 Overall cumulative satisfaction by platform at December 2009 (NSI out of 100) 2007 2008 2009 Telephone Banking 79.40 79.68 79.20 Bankinter Private individuals 80.30 78.42 77.89 Bankinter Broker 77.59 75.96 75.79 Bankinter Businesses 79.09 79.36 77.17 Mobile phones 83.10 79.51 82.64 84 82 80 78 76 74 2007 2008 2009

Bankinter Annual Report 2009 16 1. Quality Management > Bankinter Quality > Service that is different > Quality in private individuals: > Quality in businesses > Quality in handling incidents > Quality and internal customers > Taking action to improve quality A different Bank that seeks to be the best for private individuals. Year after year, Bankinter has held a leadership position in the perception of quality by private individual customers. We carry out market research on a quarterly basis through an independent consultant, that allows us to discover the level of customer satisfaction (private individuals) with the perceived service of their Bank or savings Bank. Knowing Bankinter's relative position with respect to other financial institutions in the Spanish market, and knowing which are the most significant service factors, gives us the perception indicator for services that private customers receive from Bankinter, and their greater perceived satisfaction. The research conclusions are obtained by asking customers about eleven aspects of service that are important to them. The perception of the service offered by Bankinter is outstanding in all these aspects, especially training and professionalism of staff, advisory services, treatment of and attention shown to customers, transaction speed, clarity of information, response to incidents and meeting of agreed deadlines. Bankinter vs. Market. Private individuals NSI Private Individuals 2007 2008 2009 78 Market 70.72 70.74 69.49 Bankinter 76.75 74.58 74.29 GAP 6.03 3.84 4.80 Geographic scope: Nationwide, for towns of over 50.000 inhabitants. Universe: General population over 18 holding current or savings accounts with a financial institution. Sampling: 1.600 interviews per quarter. Survey methodology: Computer-assisted telephone interview. Sampling error: ±2.5%. Source: Inmark December 2009 76 74 72 70 68 2007 2008 2009 4.80 +4.8 with respect to the market average

Bankinter Annual Report 2009 17 1. Quality Management > Bankinter Quality > Service that is different > Quality in private individuals: > Quality in SMEs > Quality in handling incidents > Quality and internal customers > Taking action to improve quality A different Bank that seeks to be the best for private individuals. Also, we conduct half-yearly market research through an independent consultant, that enables us to ascertain the degree of satisfaction of companies with the products and service they receive from their banks or savings banks. The customers of Bankinter's SME segment rate the Bank higher than the average for customers of other banks and savings banks, and in the past year Bankinter's lead was 2,2 NSI points. The research conclusions are obtained by asking customers about fifteen aspects of service that are important to them. Of particular note is our leadership in aspects concerning our account executives, who stand out significantly, specifically as regards advisory services and their training and professionalism. Bankinter's score is also well above the market in products and services and in operating procedures, and in terms of meeting deadlines and conditions. Bankinter vs. Market. Companies NSI companies 2007 2008 2009 78 Market 75.88 72.91 68.79 Bankinter 76.58 74.24 71.00 GAP 0.7 1.33 2.21 Geographic scope: The whole of Spain (except Ceuta and Melilla). Universe: Spanish businesses with an approximate turnover of between EUR 0.5 million and EUR 5 million. Sampling: 1.110 interviews every six months Survey methodology: Computer-assisted telephone interview. Sampling error: ±2.97%. Source: Inmark December 2009 76 74 72 70 68 2.21 +2.2 with respect to the market average 2007 2008 2009

Bankinter Annual Report 2009 18 1. Quality Management > Bankinter Quality > Service that is different > Quality in private individuals: > Quality in SMEs > Quality in handling incidents > Quality and internal customers > Taking action to improve quality A different Bank which takes resolute action in the event of an incident Resolution period of less than 48 hours 52.5% 51.77% in 2008. Bankinter's Customer Service Departmenthandles and resolves customer complaints and claims, ensuring that they are dealt with in a consistent and timely manner and that customers perceive that the Bank is acting in their interests. As well as resolving customers' problems, the Customer Service Department prevents and corrects any major mistakes made in any area of the Bank when selling a product or providing a service. In 2009 we experienced a slight increase in the number of complaints and Claims settled, which reached 11.4 per million transactions compared with 10,9 per million transactions in 2008. As for the time taken to deal with complaints and claims, 52,5% of the incidents were resolved in less than 48 hours in 2009, a slight improvement over the 51,8% of the previous year. Total number of Complaints and Claims 2008 2009 No. of claims in Bank s favour 5,959 4,609 Total number of claims (financial) 10,034 14,947 Total 15,993 19,556 Financial claims 2008 2009 Number of Claims settled in customer's favour 6,750 8,757 % of total 67.27 58.59 Number of Claims settled in Bank's favour 3,284 6,190 % of total 32.73 41.41 Total financial claims 10,034 14,947 Time taken to resolve financial incidents Times Total incidents % 0 days 7,001 35.80 1 to 2 days 3,271 16.73 3 to 6 days 2,492 12.74 7 to 10 days 1,437 7.35 > 10 days 5,355 27.38 19,556 100.00

Bankinter Annual Report 2009 19 1. Quality Management > Bankinter Quality > Service that is different > Quality in private individuals: > Quality in SMEs > Quality in handling incidents > Quality and internal customers > Taking action to improve quality The External Customer Ombudsman, an independent bodyrepresented by José Luis Gómez Dégano, Incidents processed 1.051 claims in 2009 from customers appealing decisions of the Customer Service Department. This is an increase of 48,5%, although those resolved in favour of the customer were down considerably, by 35,4%. Lastly, the Complaints Service of the Bank of Spain Incidents processed 515 claims in 2009 from customers who were not in agreement with the solution provided by either the External Customer Ombudsman or the Bankinter Customer Service Department. External Customer Ombudsman 2008 2009 09/08 (%) Incidents processed 708 1,051 48.45 Settled in the customer s favour 404 261-35.40 Settled in the Bank s favour 278 571 105.40 Excluded 26 219 742.31 Bank of Spain 2008 2009 09/08 (%) Claims settled 122 515 322.13 In the customer s favour 36 55 52.78 Uncontested 21 39 85.71 In the Bank s favour 22 58 163.64 Pending settlement 40 361 802.50 Outside Bank of Spain jurisdiction 3 2-33.33

Bankinter Annual Report 2009 20 1. Quality Management > Bankinter Quality > Service that is different > Quality in private individuals: > Quality in SMEs > Quality in handling incidents > Quality and internal customers > Taking action to improve quality During this past year, perception of Bankinter's central services improved compared with the previous year. A different Bank that seeks to be the best, evaluating and involving in-house customers Every six months Bankinter's Central Services are evaluated by the Branch Network both overall and from the viewpoint of the central services of each regional headquarters, and they also perform a self-evaluation. This evaluation, together with the performance in customer satisfaction, is the basis of the 'quality factor', to which the remuneration of all of the Bank's staff is linked. During this past year, perception increased compared with the previous year, both in terms of perception of the Central Services by the Central Services themselves and by the network of offices, as well as in the survey of Central Services of regional headquarters. These surveys are completed by all of the staff in order to ascertain the perception of service received in-house. Overall satisfaction, in-house surveys. Offices, Central Services and Central Services of regional headquarters (NSI out of 100) 2007 2008 2009 Branch Offices 70.14 68.41 69.35 Central Services 65.95 67.44 68.34 Central Services of regional headquarters 71.54 71.27 72.60 74 72 70 68 66 2007 2008 2009

Bankinter Annual Report 2009 21 1. Quality Management > Bankinter Quality > Service that is different > Quality in private individuals: > Quality in SMEs > Quality in handling incidents > Quality and internal customers > Taking action to improve quality Improvement plans 156 in which 241 people took part A different Bank which recognises quality improvement In 2009, 156 improvement projects were started, with 241 people, 5.3% of the Bank s workforce, taking part. The aim of these projects is to encourage and recognise the individual and collective efforts of those persons who have stood out in terms of their contribution to improving quality of service in day to day work, and which have been directly reflected in external and inhouse customer satisfaction. In both halves of 2009, the following centres were recognised as having the best perceived value from their customers: Best office with more than 600 active customers: Ibi and Orihuela branches. Best Private Banking centre: Valencia Ag. 1 and San Bartolomé de Tirajana branches. Best SME centre: the SME centre ofmurcia, in both half-years Best Foreign Customers office: office of Los Cristianos, in both half-years Best Sales Department: Levante Coast and Madrid Head Office. Also, and in recognition of joint efforts, the following areas received, in the two halves of 2009, the best rankings in in-house surveys: Best office with fewer than 600 active customers: Águilas and Villajoyosa branches Best Risk team: Andalusia Regional Headquarters Risk Department, in both half-years. Best Personal Finance centre: Personal Finance centres of Seville and Valencia. Best Private Banking centre: Private Banking centres of Benidorm and Castellón. Best Private Banking centre: Corporate Banking centres of Cantabria and Albacete. Best Operations Centre: Avales, in both half-years. Best Central Service: Private Banking and Quality Management. Best Regional Headquarters for Virtual Offices: Andalusia and NARS Regional Headquarters. Best Regional Headquarters for Agents Network: Las Palmas and Levante Regional Headquarters.

Bankinter Annual Report 2009 22 2. Innovation and Technology > Innovation > Technology Innovating > IT security 2 Innovation and Technology Innovation and Technology form the main foundation for the creation of the Bank's products and services. In 2009, Bankinter paid special attention to the launching of advanced mobile services and the creation of new environments for communication with customers. Matías Díaz, Systems Technician

Bankinter Annual Report 2009 23 2. Innovation and Technology > Innovation > Technology > IT security Systematic customer focused innovation Bankinter's "systematic innovation" is a process channelled through the Applied Innovation department, whereby solutions to challenges are sought. The purpose of this methodology is to promote innovation in line with the Bank's strategy and at the same time involving all employees. In 2009 the Bank adopted innovation projects that constitute 11% of all strategic initiatives of the business for the 2010-2012 period. Once the systematic innovation has been completed, the Bank decides on the proposed solutions, and the Innovation department cooperates to ensure that accumulated knowledge of the solution is not lost and the innovative spirit is maintained. Systemic innovation in 2009. In 2009 two challenges facing the Bank were tackled: Challenge 1: "The best sales workforce and procedures in the Spanish banking system". Starting in the last quarter of 2008 and completed in the first quarter of 2009, its aim was to make Bankinter the benchmark Bank in Spain, in terms of sales network and processes, in line with our strong commitment to differentiation. A total of 478 employees took part in meeting this challenge (78 through physical meetings and 400 contributing ideas through the Innova web), alongside 48 customers who contributed their views, and six companies which collaborated in brainstorming sessions. The project Incidents processed more than 600 initial ideas, 35 of which were taken to a second stage of consideration and nine of which were eventually selected to be developed in greater depth. Three of these ideas were finally selected for implementation in 2010. Best practices (High Performance Centre) Sales planning and CRM 2.0 Sales style

Bankinter Annual Report 2009 24 2. Innovation and Technology > Innovation > Technology > IT security Challenge 2: "Excellence in quality as a growth lever in Private Banking". This challenge, met during the second and third quarters of 2009, was focused on seeking solutions to achieve better growth in the medium and long term in the Private Banking customer segment, based on a focus on quality. A total of 143 employees took part in meeting this challenge (55 through physical meetings and 88 contributing ideas through the Innova web), alongside six companies which collaborated in brainstorming sessions. The project Incidents processed more than 700 initial ideas, 26 of which were taken to a second stage of consideration and three of which 3 were finally selected for implementation in 2010. Customer Quality Management (CQM) Independent advice Nano-CRM The Innovation Community: With the aim of spreading this way of working and encouraging innovation within the Bank, as well as in the interests of transparency and to show the results obtained in each period, we launched the Innovation Community, a place where employees can find out about innovation processes, as well as the results of the collective innovation model, thus ensuring that knowledge is shared. All techniques implemented in each systematic innovation challenge, the result obtained from each technique and the employees that contributed to these results are published in this community. The community also publishes pilot runs that the Innovation department decides to carry out to test new concepts and encourage more "disruptive" innovation. The publication of these pilot runs means that all activities in the department are transparent for the rest of the Bank, and other areas can thus take advantage of the knowledge gleaned from these initiatives.

Bankinter Annual Report 2009 25 2. Innovation and Technology > Innovation > Technology > IT security More than 30% of the Bank's customers at some time use some mobile Bankinter service. The Web of Ideas, Innova The Innovation Community boasts a platform developed by the Bank for the exchange of new ideas; an exchange which, by definition, is collaborative and interactive. From the web of ideas, challenges and initiatives are continuously launched to the rest of the Bank, thus ensuring that all employees participate in these initiatives, strengthen them and propose alternative points of view. The "Idea of the month" is one of the competitions promoted from the Intranet home page: From here the Innovation department makes available to the entire workforce one of the ideas used in the challenges, with a view to its being enriched and developed by their contributions and taken into account by the Bank. To promote participation, a prize is awarded to the best collaboration of the month. With the support of new technologies, such as semantic recognition, participants are encouraged to find out about ideas similar to those being proposed, and in this respect build on them. Ultimately, this promotes collaboration and the construction of ideas in teams, and not pure competition. Training, as a means of transferring knowledge in innovation The People Management, Innovation Foundation and Applied Innovation departments jointly developed a training programme applied to a group of 40 specifically selected persons - called "Innovation 360", which was approached from two viewpoints: Innovation in global trends: Members of the Bank's top management played the role of expert professors and, using case studies, developed and worked with students on issues discussed in meetings of the FTF (Future Trends Forum), promoted by the Bankinter Innovation Foundation. Systematic innovation: Four training goals were selected, on the basis of which students had the opportunity of learning, in a practical way, in three intensive months, all the techniques used in the Bank for analysing, generating, selecting and presenting ideas. Mobility, the channel that provides most innovation to customers. The latest data indicate that more than 30% of the Bank's customers have at some time used a Bankinter mobile application, and more than 70% regularly use SMS text message alerts.

Bankinter Annual Report 2009 26 2. Innovation and Technology > Innovation > Technology > IT security In line with the Bank's strategy of developing mobility as a channel for connecting with its customers, and its aim to be a European leader in this area, Bankinter began to sell SIM cards (mobile telephony service) direct to its customers in 2008. To this end it devised an innovative value proposal that combines mobility applications and services with the actual telephone service as conventionally provided by telecommunications operators. 2009 was a particularly good year in terms of the development and launch of new mobility proposals. Specifically, new versions of mobile Internet have been developed, adapted to the new handsets appearing in the market (more sophisticated, with touch screens and greater capacities for executing applications), and a new telephony based service has been distributed, complementing the traditional one, which involves offering customers third generation mobile Internet connections. Specific versions have been launched for new generation mobiles, which offer services even for non-customers, who can access information on share prices, indices, currencies, ATM locations, etc. Some of the most important projects are: Geo-localisation and Augmented Reality This makes it possible to find branches and ATMs close to a customer, view maps on their own mobile to show them how to reach them, and even augmented reality functions, which combine real information with information from databases. Thus, a customer may identify where a branch of the Bank is, and even telephone it, just by pointing the mobile to a specific area of the city. Broker Touch. Taking advantage of the new capabilities of latest generation mobiles using the Android system, a new version of Bankinter broker has been launched, featuring touch technology, extreme user friendliness and maximum operativity in the world of equities. Mobile as a means of payment. Seeking excellence in the usability of services, and once more ahead of the market, Bankinter has launched a technological pilot project which will enable payment via contact free technology, with the security provided by mobile SIMs. Thus pilot is a global pioneer, and is being implemented with an urban transport company in the city of Madrid, and with the collaboration of a leading global corporation which provides telecom technological services.

Bankinter Annual Report 2009 27 2. Innovation and Technology > Innovation > Technology > IT security Average Teleprocessing time (seconds) 0.1 Average Internet time (seconds) 1.9 Technology Continuing with the committed strategy of considering technological investment as one of the pillars of the institution, in 2009 important progress was made in this area, aimed mainly at ensuring the constant and consistent quality of the products and services offered to customers. In this respect it is worth highlighting the investments made in communication channels with customers. Among these, the development of a new personalised home page for Private Banking customers, showing a commitment to the personalisation of information, as well as the launch of the new "Bankinter Labs" service, in which customers participate in the design cycle for products which will later be offered online, mean the main social networks can be used as a new means of communication, This past year, work was carried out on improving the "middleware architecture" with the aim of optimising hardware consumption. In this way, with the virtualisation of hardware, investment in equipment is made more efficient, and there are savings in electricity consumption, with the consequent positive contribution to the environment. There was particular emphasis on all projects concerning one of Bankinter's strategic commitments related to high income customers, and this involved substantial investment in new products. Bankinter continues to incorporate into its Internet services the most advanced technologies while at the same time making them compatible with the Bank's web accessibility strategy. Likewise, 2009 saw continued large investments in the area of Basel II, in the control and monitoring of late payments and internal management systems, especially those related to the management of loan risks. Finally, it is worth highlighting the projects undertaken by the company aimed at reducing paper consumption, both in internal information and in respect of the information sent to customers, with the ultimate objective of contributing to the sustainability of our environment.

Bankinter Annual Report 2009 28 2. Innovation and Technology > Innovation > Technology > IT security Technological Risks and Security Continuing along the lines laid down in the Strategic IT Security Plan, and therefore in line with the achievement of the Bank's strategic objectives, the following significant milestones were passed in 2009: Customer security The concept of 'customer security' forms part of the Bank s strategy for protecting its customers. This strategy is defined in terms of three basic pillars information, protection and advice, together with the overall premise that customers must play an active role in their own self-protection. The remote banking services of financial institutions had a more troubled year in 2009 than 2008 as a result, above all, of increasingly widespread online fraud and the ever more professional use of threats such as Trojans, a type of computer virus designed specifically to obtain customers' Internet access and operating information by fraudulent means. Bankinter looks after its customers through two specific and precise lines of action: Training, raising awareness and advising customers. A basic issue, as fraud is based on gaining trust and cheating customers. Protection of our customers through innovative and complex security and control mechanisms - such as our security CRM, which allow us, in most cases, to detect at an early stage customers whose computers are infected by Bank trojans. In these cases we block, as a precautionary measure, their Internet credentials, and immediately contact customers to inform them and advise them as to the situation and the actions to be carried out. Customers blocked as a precautionary measure 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2007 2008 2009

Bankinter Annual Report 2009 29 2. Innovation and Technology > Innovation > Technology > IT security In addition, as in previous years, the security and protection systems in place at Bankinter were audited by independent parties of renowned standing, which confirms once again the guarantees of security and reliability that have made Bankinter s remote banking service a benchmark in the sector. First Spanish company to be certified simultaneously as BS 25999 and ISO 27001 compliant We renewed our certification for IT business continuity. In 2008 Bankinter was the first Spanish business to achieve BS 25999 certification, which evidences the Bank's compliance with the highest standards of quality and professional rigour in managing the business continuity of its computer platforms and systems. In support of this, in 2009 the Bank passed the recertification test for this standard, thus demonstrating its commitment to the quality and technological continuity of its systems. Re-certification, a guarantee of security in our Internet transactions Providing shareholder value This year we reached a new commercialisation agreement for Bitácora, our new log management system. This tool enables, among other functionalities: The universal and centralised management of logs in a structured, lasting, reliable, secure and, above all, accessible way. Us to be the nerve centre of processes of analysis and intelligent correlation, and the management of security alerts. It is also a business intelligence tool, used both by personnel from the Bank's Technology department and any other business department that requires it. Bitácora, a security service that was developed at the beginning of 2001 in response to a specific requirement of the IT Security department, has become a commercial product, firmly established in the market, with its own name and reputation among the main financial institutions of the country. This is, undoubtedly, something for the company to be proud of, thanks to the atypical income deriving from this marketing agreement. The ISO 27001 Certification of the Bank's Security Management System reached its third anniversary during 2009. The world-renowned British Standards Institution (BSI) performed its third re-certification review in order to validate the proper maintenance of the system and its cycle of ongoing improvement. As a result, Bankinter comfortably surpassed the requirements established, thereby demonstrating in an objective, evident and visible manner the Bank's commitment to the Security Management System.

Bankinter Annual Report 2009 30 3. Canales y Redes > Multicanalidad > Redes de distribución > CRM Channels &Networks Channels and 3Networks Bankinter continues to be committed to the multichannel strategy as one of its big competitive advantages. Customers can interact with the Bank using the channel that is most convenient for them at any given moment. This wide range of relationship formats has a positive impact on the quality of service perceived by customers. Juan Álvarez, Senior Marketing Executive

Bankinter Annual Report 2009 31 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM 67% of transactions were carried out through non physical presence channels. Multi-channel Banking Bankinter has made the multi-channel strategy one of its big competitive advantages, and continues to boost this strategy. In 2009, Bankinter continued to develop the innovative customer relation channel which, with the name of "Video call Service", uses the possibilities of the Internet to offer an interactive, multimedia, personalised and specialised advice service, according to each need. With this service, any customer may contact the Bank, or vice versa, using an image and voice system that makes it possible to share documents, IT applications or websites, increasing both the capacity of the advice function and the resolution of queries or the remote commercialisation of complex products or services. The Video Call Service enables customers to utilise the best of each communication channel: the personal and specialised attention, with its long opening hours, of telephone banking, the efficiency and immediacy of remote internet services and the closeness and human touch of the physical office. Bank's competitive advantages. Thus, and leveraged by the strength of our CRM, this means that either channel for dealings is used, depending on the time, the product and customer preferences, while maintaining a single commercial coherence. This has enabled us to optimise commercial efficiency and multiply the number of contacts while containing costs. 2009 saw 1.71 billion transactions, with an increase over the previous year of 17%; 67% of these transactions were carried out through non-presence-based channels, which gives us an idea of how the Multi-channel Banking has transformed the Bank. Variation in transactions by channel 100% 80% 60% At Bankinter customers can interact with the Bank any time and anywhere using the channel that is most convenient for them. The combined use of each of them (Branch network, Telephone Platform, Bankinter.com, ATMs, mobile phone, etc.) means that the service provided reaches levels of perceived quality that make us market leaders. This year we continued to focus on integrating our commercial activity through the different channels. This is another of the 40% 20% 10% 0% 1995 1997 1999 2001 2003 2005 2007 2009 Visa l Branches l Internet l Mobile channel l Telephone banking l Online banking

Bankinter Annual Report 2009 32 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM Telephone Platform 2009 saw a general decline in Bank transactions, meaning a 12% fall of the number of calls compared with the previous year, end of year figures standing at a total of 4.3 million calls dealt with. Of the total calls received, 37% were dealt with by the automatic system, and the rest, 63%, by agents. The difference with the previous year lies in the implementation of the new robot at the beginning of the year. The number of e-mail messages Incidents processed totalled 53,852, which was almost 20% less than last year. The total workforce of the telephony platform was adjusted during the year to meet levels of activity, with the aim of maintaining efficiency levels. With regard to quality and service levels, the telephony platform continues to be one of the most recognised channels, obtaining from customers a cumulative NSI (Net Satisfaction Index) valuation for the year of 79.2. As for the basic service indicator (the percentage of calls dealt with within 20 seconds), once again the target of 80% was exceeded, cumulative data for the year final totalling 86.3%. In technological areas, two important facts should be highlighted: The implementation of the new automatic system, which was carried out gradually during the first quarter of the year. New features of this system are the possibility of interacting by voice as well as tones, a personalised menu in line with the products used by each customer, and a much more natural voice. In the first few months of 2010, work will be carried out on updating the voice recognition module, which will enable a significant improvement in the quality of service provided to the customer. We commissioned a new recording system, which allows direct access to recordings, searches by different selection criteria, and features an excellent call evaluation system, with the aim of meeting as far as possible the needs and quality that customers require on a day to day basis. For the third year in a row, Bankinter's telephony platform was again recognised as the best contact centre in the banking sector, winning the following awards: Top prize in customer experience in the banking category. Top prize in the best customer experience programme. (Both prizes were awarded by IZO Systems, a leading consultant in the call centre industry, and Diario Crítico de la conomía). Ibero-American Prize for the Best Telephone Banking Service, awarded by the Asociación Iberoamericana de Relaciones Empresa Cliente (AIAREC), which currently comprises: Colombia, Mexico, Brazil, Portugal and Spain.

Bankinter Annual Report 2009 33 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM The Internet continues to be customers' favourite channel, through which 54.9% of all transactions were carried out in 2009. Internet in Bankinter The Internet continues to be customers' favourite channel. Through this channel, 54.9% of all transactions carried out in the Bank during 2009 were executed. Innovation and the constant search for quality continue to be one of the foundations of the success of this channel. With this constant quest to improve service, we launched the "BankinterLabs" service, the aim of which is to include customers in the process of creating the Bank's products and services, to better adapt them to their needs. Also, to test the functionalities of the new services on which the Bank is working, this environment is also an opportunity for the Bank to communicate in a different way with its customers, with the creation of a Facebook group, a Twitter profile and a channel on Youtube with the aim of providing interactive communication through channels that are unusual in a financial environment. www.bankinter.com This past year we continued our commitment to the personalisation of bankinter.com, providing customers in the Private Banking and Personal Finance segments with a new comprehensive statement with new functionalities, as well as a personalised homepage with weekly market information in video format, a statement with summarised information on positions, an exclusive services zone (communication between relationship managers and customers, tax advice and the solution line), and an area in which the customer can personalise financial tools, direct access and market reports. Among the range of products and services included this year within bankinter.com, of note is the new "personal financial planning" tool, an advisory service providing future projections for financial strategy, which helps customers to channel their savings so as to ensure the availability of funds they desire on retirement, or to reach a specific financial aim within a given timeframe. broker.bankinter.com 2009 was a year of many fluctuations on all stock markets. Against this backdrop, Bankinter broker continues to be a leader in the equities market, processing through this channel 90% of purchases, and 83% of sales executed. Bankinter Broker helped shareholders to take part in the EUR 350 million capital increase to finance the acquisition of 50% of Línea Directa Aseguradora. The familiar mechanisms for buying on credit in the domestic market were extended this past year to the US markets, enabling customers to quadruple their investment not only in euros but also in dollars. In 2009, the computerised market started to trade with three decimal points, and broker.bankinter.com adapted its orders to this new requirement so that not only can it contract but also check prices with four decimal places in all markets that do so. We have also continued to work on the implementation of new options demanded by customers, such as the possibility of viewing bills up to five years old.

Bankinter Annual Report 2009 34 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM empresas.bankinter.com The business website continues to be a vital tool, used on a daily basis, for business customers of Bankinter in their financial activities. This website showed consistently increasing usage figures in 2009. At December 2009, 75.5% of active customers in the SME segment were both active and regular users of the website, a figure reaching 83.5% among active Corporate Banking customers. Among the new functionalities implemented this past year, of particular note is the inclusion of better notifications for customers connecting to the website, such as notice of non payments and overdrafts, which facilitate access to information and the operations that these customers need to carry out on a daily basis. SMS text messaging platform The SMS text messaging platform offers substantial added value to customers, who perceive the availability and immediacy of information as excellent attributes. In 2009, customers were sent a total of 41,423,518 messages, 80.3% of active customers in the individual customers segment receiving mobile messages. Quality indicators show a high level of satisfaction among customers in terms of the service received in areas such as the usefulness of the information, with an NSI of 80.3; immediacy, with an NSI of 87.3, and clarity of information, with 83.0. Likewise, procedures for handling transfers were adapted to bring them into line with SEPA (Single Euro Payments Area) regulations, leading in turn to a more user-friendly interface, differentiating between transfers in euros and other currencies. From a declared strategy in favour of innovation which has always characterised Bankinter, this past year we added a branch locator to the website, using "Google maps", to help customers find branches and ATMs throughout Spain.

Bankinter Annual Report 2009 35 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM Video Call Service The "Video call Service", uses the possibilities of the Internet to offer an interactive, multimedia, personalised and specialised advice service, according to each need. This service, in which customers see a real-time image of their relationship manager, continues to be very warmly received by customers after two years of existence, having been used in that period on more than 100,000 occasions; in terms of quality, this year it was awarded 83.1 NSI points. The main advantage of this communication channel is that it enhances agents' advisory capabilities since, among other functionalities, it makes it possible to share documents on screen with a level of interaction very similar to that of a face-to-face meeting. The video call service can also be used both for sales purposes - with managers offering information on the Bank's various products and even signing customers up for them - and for resolving queries or problems online. This service has been perfectly integrated into the multi-channel structure of the Bank, combining the closeness offered by the personal attention of offices with the power of an online tool, making it possible to direct video calls to the specialist manager who should deal with the customer at any time, making it a multimedia experience that brings people together through innovative technology. The video call service offers the possibility of sharing documents on screen with the relationship manager.

Bankinter Annual Report 2009 36 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM Distribution networks As for the network of ATMS, 2009 closed with a total of 248 installed, meaning that 67% of branches have one. Branch network At the end of the financial year Bankinter had a network of 369 "universal" branches, which serve all Bank customers, and which complement the management of existing customs with the capture of potential ones, both individuals and legal entities. Special mention is due to the efforts made in 2009 to provide offices with specialists in the capture and management of customers from a specific segment called Personal Banking, who, whilst not being customers of the Private and/or Personal Finance segments, nonetheless require special attention due to their level of income or wealth. The basis for developing the activities of sales teams continues to be the powerful CRM tool, which makes it easier to present customers with the products best suited to their profile and needs and best market options at any given time and with the appropriate frequency. Throughout this past financial year we continued to adapt the facades of branch buildings to Bankinter's new corporate image, ending the year with 360 branches showing the new brand, 98% of the total network. As regards the interior of branch offices, the total of those adapted to the new identity reached, at the close of year, 119 centres, or 32% of the network, with the intention of completing 100% in the next few years. As for the network of ATMS, 2009 closed with a total of 248 installed, meaning that 67% of branches have one. To carry out the activities of attracting and managing customers in the branch network, Bankinter has a team of professionals (managers, sub-managers, account managers, executives, authorised officers and clerical staff) whose task is to provide quality service and promote sales activity in all the business segments under their responsibility. Cumulative average resources (EUR 000s) Cumulative average lending (Thousands of euros) 14,746 36,388

Bankinter Annual Report 2009 37 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM However Bankinter also has a team of specialists in various Customer segment working at a number of clearly differentiated centres: - Business Centres. At year end, Bankinter had a network of 102 Business Centres, distributed among the 13 regional headquarters of which the Bank is composed, with a total headcount of 240 employees. These Centres are mainly located in industrial estates where there is a high density of medium-sized enterprises, to whom they give specialised and close-at-hand commercial attention. Personal Finance Customers. The workforce in these centres, highly qualified to meet the requirements of these customers, comprises a total of 258 employees, of whom 34 are dedicated exclusively to Personal Finances. - Corporate Centres The Bank currently has 47 Corporate Centres, staffed by a total of 195 professionals. These are centres where larger businesses and institutions receive specialist commercial attention. - Private Banking and Personal Finance Centres. The number of these centres, exclusively dedicated to taking comprehensive, personalised care of customers in the Private Banking and Personal Finance segments, stood at 62 at year end, of which 12 opened in 2009, dedicated exclusively to serving Branch Network Highlights 31/12/2008 31/12/2009 09/08 (%) Non-specialised branches 372 369-0.81 Average funds (millions) ) 14,774.64 14,746.03-0.19 Average loans and receivables (millions) ) 35,629.51 36,388.22 2.13 Ordinary income (millions) ) 825.11 768.61-6.84 Efficiency (%) 46.62 48.75 4.57 Overall satisfaction (points) 75.56 74.03-2.02 Private Banking and Personal Finance Centres. 62 12 of which opened in 2009

Bankinter Annual Report 2009 38 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM The network of agents faces the challenges of the coming years with the confidence that it will maintain its consolidated leadership, defend its level of quality and increase its growth. Agents Network Bankinter's Agents network ended 2009 once more as leader in this model of banking distribution. This network, which was set up in 1992 as part of Bankinter's strategic commitment to growth and profitability, is based on partnership between the Bank and professionals in the financial and advisory services field. Bankinter and the agent share the margins earned on financial transactions without incurring the structural costs of traditional branches. Aware of its growing importance, Bankinter is continuing with its commitment to the training and professional development of agents. In this respect they receive general training plans on an ongoing basis: beginner and update courses on technological platforms and the operational processes of the Bank, product training etc. Likewise, and going even further, in 2009 we developed specific training in advisory products regulated by the MiFID Directive, such that agents' advisory qualifications are a clear differentiator. Likewise, Bankinter continued to work on segmenting agents according to their business, business volume and degree of involvement with the Bank. This segmentation involved a process of rationalising the network with a view to implementing initiatives focused on improving both the results and the professional development of the agents who are most involved, and with the greatest possibility of business growth. Consequently, 237 agents have left the network, which closed the year with a total of 683 agents throughout Spain. The Agents network has a history of success and continues to have a promising future. It has an ever greater specific weight within the Bank's business, and faces the challenges of the coming years with the confidence that it will maintain its consolidated leadership, defend its level of quality and increase its growth. Branch Network Highlights 31/12/2008 31/12/2009 09/08 (%) Agents 920 683-25.76 Average funds (millions) ) 992.10 934.31-5.83 Average loans and receivables (millions) ) 1,968.18 1,977.14 0.46 Ordinary income (millions) ) 33.74 29.37-12.95 Efficiency (%) 44.79 46.31 3.39 Overall satisfaction (points) 75.67 73.00-2.67

Bankinter Annual Report 2009 39 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM Bankinter's Virtual Banking continues to represent a unique model of collaboration between a Bank and a business. Virtual Banking Bankinter's Virtual Banking continues to represent a unique model of collaboration between a financial institution and another company, public agency, association or professional body. Through a virtual branch, financial products and services are offered to the partner's employees, members, customers and suppliers. In 2009, Virtual Banking started developing a business based on: - The clear focus on managing and providing advice to customers in the Private Banking and Personal Finance segments. - Adapting the offering of products and services to the specific needs of the partners (Agents and Virtual Branches). - The obsession with quality, realising that this is a differentiating variable of our value proposal. - Profit sharing with partners The key to the success of Virtual Banking is that Bankinter and its partner (company, professional society, association, etc.) comanage the Branch.: The Bank provides the capital, technology and financial products, while the partner provides access to the organisations and individuals with which it usually deals, with both of them sharing in the earnings generated by this business. The profit shared by the partner may also be passed on to the end customers of the virtual branch. Virtual Banking customers continued to be the most satisfied of all the Bank's networks in 2009, with an NSI score of 77.4 points. One of the factors contributing to the high degree of satisfaction of virtual branch customers is the advice and personal attention they receive thanks to the Bank's remote service platforms and the knowledge and management possibilities offered by Bankinter's CRM. At year end 2009, this business had 5% of the Bank's active customers, and accounted for 9.2% of profit before tax, 8% of average funds and 4.6% of the lending of all the networks. Online Banking Highlights 31/12/2008 31/12/2009 09/08 (%) Branch Offices 407 399-1.97 Average funds (millions) ) 1,497.32 1,397.69-6.65 Average loans and receivables (millions) ) 2,013.36 1,924.72-4.40 Ordinary income (millions) ) 44.56 37.81-15.13 Efficiency (%) 44.89 48.20 7.37 Overall satisfaction (points) 77.23 77.38 0.15 NSI Online Banking 77.4 are the most satisfied customers

Bankinter Annual Report 2009 40 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM Off-site networks The Remote Networks closed 2009 with pre-tax profits of EUR 11.5 million. This figure is the result of managing the 30,818 customers of the Internet and Telephone Networks. Both these networks share the orientation towards managing and providing advice remotely to customers, thus encouraging Bankinter's multi-channel strategy for the marketing of products and services. The average resources of these customers stood, at year end, at EUR 452.5 million, and lending, mainly residential mortgage loans, stood at EUR 1.13 billion. The nominal portfolio of equities deposited increased by 8% on 2008. Remote Networks highlights 31/12/2008 31/12/2009 09/08 (%) Average funds (millions ) 631.30 452,47-28.33 Average loans and receivables (millions ) 1,211.06 1.132,92-6.45 Ordinary income (millions ) 24.57 21.66-11.85 Efficiency (%) 47.56 43.12-4.44 Overall satisfaction (points) 74.06 73.73-0.45 Nominal portfolio - equities +8% compared with the close of 2008

Bankinter Annual Report 2009 41 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM CRM 21 thousands of sales actions CRM CRM is a strategic component of the commercial activities of the Bank's various areas that provides the necessary knowledge and tools for the launching of sales actions that cover all aspects of customer relations: capturing new customers, cross-selling, maximising profitability, customer retention, advisory services and quality. In 2009 the Bank improved the management of sales actions, personalising them with greater precision according to customer profiles through all sales platforms and channels: Branch Network, Agents, Virtual Banking and Distance Sales, Internet, SMS, Mobile Phone Banking, Mailing, e-mailing and Video Calls, leading to an improvement in product uptake rates. In terms of activity, this year, CRM Incidents processed 21 million commercial actions, placing greater emphasis on the electronic channels. 5.5 million letters were sent out, 8.2 million e-mails and 2.1 SMS messages. In addition, 2 million actions were included in the schedules of the sales staff, and 3.1 million opportunities for sales online, by telephone or branch, were offered reactively. 2009 saw improved success rates of commercial actions in all segments. Particularly noteworthy are specific combinations of channels, which showed extremely positive results. CRM dispatches to customers, 2009 Private individuals Private Banking Finance 6,082 SMEs 15,015 Corporate Banking 2,410 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 5,500,000 Text message (SMS)l e-mail l letter

Bankinter Annual Report 2009 42 3. Channels and Networks > Multi-channel Banking > Distribution networks > CRM Analysis work also saw a 23% increase in activity over the previous year, with a total of 626 reports and studies being carried out, of note being the updating and monitoring of results from Next Best Sell and abandonment models in the Private individuals, Private Banking and SME segments, the process of resegmenting customers and the capital increase carried out in May, as well as monitoring sales actions carried out during the year. The CRM and Marketing Intranet is intended to serve as a communication link with the Bank, as well as support for and records of sales action and help with attracting customers. Letters e-mails SMS messages 5.5 thousands 8.2 thousands 2.1 thousands of letters of e-mails of SMS messages Schedules Sales opportunities 2 thousands 3.1 thousands of actions in salespersons' schedules sales opportunities by Internet, telephone and branches

Bankinter Annual Report 2009 43 4. Capital intelectual > Capital humano > Capital estructural > Capital relacional Intellectual 4Capital Intellectual In the current social and economic climate, the value of organisations is increasingly measured by the value of its intangibles. Bankinter's intellectual capital model provides relevant information to assess the value creation capacity of these assets in the company's business strategy. Guillermo Gutiérrez-Senderos, Personnel Manager

Bankinter Annual Report 2009 44 4. Intellectual capital > Human capital > Structural capital >Relational Capita Introduction Bankinter's intellectual capital model provides relevant information to assess the value creation capacity and manage the contribution of intangible assets in the company's business strategy. In the current social and economic environment, characterised by economic weakness and structural changes in the banking business, differentiation depends above all on the intangible assets of organisations: knowledge, originality, the commitment and responsibility of its employees, its talent and innovative capacity, corporate culture or the value of its relations with customers, shareholders and providers, among other stakeholders. Bankinter's intellectual capital model is arranged in three blocks of information (human, structural andrelational Capitall), depending on the different nature of the intangible assets under consideration in each case. The purpose of this structure is to provide uniform and relevant information about Bankinter from a strategic point of view, so that not only the shareholders, but also the customers and society in general have comparable data available to them that is useful for determining the Bank's current value in this respect. Human Capital This refers to the attitudes, skills and knowledge of employees and teams that provide value to the organisation, as well as its capacity to regenerate its human capital though training and learning. The main objective of Bankinter's people management policy is to achieve a professional workforce that is committed, responsible, trained, motivated and aligned with the Bank's objectives and its business model. From the viewpoint of the importance of persons in the creation of value for the company, the personnel management department is applying policies based on the principles of equality and non discrimination, which allow for the proper professional development of employees, with tools which, in this respect, help in management, such as mapping of positions, knowledge, talent and training plans. Bankinter has one of the most balanced workforces between men and women in the sector. The difference between both genders has been reduced on an ongoing basis over recent years, to reach just 17 people in 2009. A workforce which is the youngest and most highly qualified in the sector: with an average age of 37 and 73.8% holding university degrees.

Bankinter Annual Report 2009 45 4. Intellectual capital > Human capital > Structural capital >Relational Capita Human Capital With the aim of increasing qualifications, the Bank continues to make significant training efforts year on year. Thus, 95.6% of the workforce participates in training programmes, this total being as high as 98% in the sales network. The Bankinter workforce is also highly committed to its working environment, and is concerned with issues such as the environment and disability. Despite being a recent project, the corporate volunteer scheme has consolidated its role as yet another asset in the Bank's culture. Evidence of this was the increase in volunteer projects in 2009 (39) compared with 2008 (18), as well as the participation rates of group employees (9.5% this year compared with 4.9% in 2008). In 2009 we carried out the workplace environment survey again, with 82% participation, a motivation index of 76% and a satisfaction index of 79%, again showing the high levels of motivation and commitment of our employees to the organisation and their very high levels of professional satisfaction. Note: metrics in 2009 were changed, counting for percentages employees who scored between 7 and 10 (on a scale of 1 to 10). Data from 2005 and 2007 has been recalculated Note: mentoring data is no longer published, as the programme was designed to provide temporary supervision for new hires (in 2007 the percentage of new hires was 23%), and in the last two years, due to the social and economic climate, the percentage of new hires has been only 3%. Indicator 2005 2006 2007 2008 2009 Descriptive indicators Number of employees 3,712 3,981 4,530 4,483 4,509 Average age (years) 36.59 36.50 35.95 36.71 37.38 Experience Average length of service (years) 10.45 10.27 9.56 10.25 11.00 Average length of service (years) as % of 40 years (professional lifetime) 26.13 25.68 23.90 25.63 27.50 Diversity Breakdown by sex Male (%) 54.98 53.10 51.79 51.10 50.19 Female (%) 45.02 46.90 48.21 48.91 49.81 Graduates (%) 70.69 71.94 72.56 73.44 73.79 Employees with advanced English language skills (%) 40.38 39.56 35.41 35.76 34.33 Number of nationalities represented 16 23 28 26 26 Number of different qualifications 92 95 89 91 91 % of workforce holding the three most common degrees at Bankinter 43.91 42.68 42.94 44.23 45.73

Bankinter Annual Report 2009 46 4. Intellectual capital > Human capital > Structural capital >Relational Capita Human Capital (cont.) Indicator 2005 2006 2007 2008 2009 Corporate Volunteer Work Number of different volunteer projects implemented 18 39 % of employees participating as volunteers in the various projects implemented 4,89 9,47 Ability and development Employees who received training (%) 100.00 100.00 100.00 95.48 95.63 Average number of training hours per employee as % of 350 (average post-grad. course load) 29 16 18 16 15 Average number of training hours per employee 100.24 56.91 62.17 57.43 53.61 Average number of training hours per employee trained 66.69 56.45 58.66 58.83 56.06 Investment in training as % of total payroll 3.42 2.83 3.26 2.00 1.30 Investment in training per employee (euros) 1,852 1,027 1,257 750 519 Investment in training per employee trained (euros) 1,232 1,019 1,186 768 543 Employees with access to Virtual Classroom from their workstation (%) 100 100 100 100 100 Training actions in Virtual Classroom as % of total different training actions 19.02 18.50 17.09 4.41 8.17 Number of different training initiatives 389 400 474 431 404 Average no. of courses per employee 12 8 9 9 10 Total no. of courses taught 1182 1121 1384 1294 1323 Index of application of training in the job performed (%) 100.00 100.00 100.00 100.00 100.00 Commitment and motivation Employees participating in stock and convertible debenture ownership programmes (%) 68.24 62.72 55.39 50.30 37.41 Satisfaction Index 70 N.A. 79 N.A. 79 Motivation index (%) 73 N.A. 73 N.A. 76 Participation in opinion poll (%) 71.4 N.A. 81 N.A. 82 External rotation index 7.03 9.74 10.53 8.94 4.10 Employees participating in Quality Projects and Actions as % of total headcount 22.36 7.54 5.30 5.49 5.33 Employees participating in Debating Forums as % of total headcount 48.71 43.26 39.03 39.04 34.80 Employees with variable remuneration (%) 65.98 68.70 59.93 76.09 74.65 Persons with flexible salaries % 11.62 18.92 *Corresponds to six month surveys

Bankinter Annual Report 2009 47 4. Intellectual capital > Human capital > Structural capital >Relational Capita Human Capital (cont.) Indicator 2005 2006 2007 2008 2009 Employees who receiving bonuses (%) 73.55 78.80 72.60 76.49 70.75 Recognition index (%) 19.64 21.60 13.97 14.03 12.51 Variable remuneration as % of total payroll 14.55 14.45 13.51 14.75 14.58 New hires in the past year as % of total workforce 18.59 16.18 22.38 7.49 4.68 % of employees with variable remuneration who meet or exceed their targets 89.91 89.84 85.16 5.22 29.32 Personnel expenses (Thousands of euros) 192,398 227,336 298,294 260,877 325,040 Number of contributions to knowledge communities 2,740 2,456 2,181 2,171 2,011 Number of suggestions for improvements 932 734 413 421 442 Value creation (Thousands of euros) PBT/Number of employees 71.51 79.46 106.94 75.17 76.72 Contribution to GDP per employee 149.57 166.36 185.27 153.04 149.76 Productivity (Thousands of euros) Customer funds per employee 7,402 8,210 8,559 8,313 8,879 Loans & receivables per employee 7,042 7,951 8,296 8,937 8,845

Bankinter Annual Report 2009 48 4. Intellectual capital > Human capital > Structural capital >Relational Capita Structural Capital Structural capital is defined as the value of the internal systems and of the corporate structure and culture. It is the knowledge that the Organisation succeeds in specifying, systematising and internalising in its individuals and teams. Sound structural capital facilitates a better flow of knowledge and leads to increased efficiency of the Organisation. The Bank directly involves its employees in decision-making processes and the introduction of significant improvements and innovations, encouraging a free, open, creative and motivating working environment. 31% of hierarchical levels are involved in preparing the Group's strategic plans Efforts made to meet flexibility requirements for the business, and the current economic climate, resulted in high internal rotation levels of employees: 26% in 2009. Internal rotation - suited to the experience and knowledge of each employee and based on the principles of equality and non discrimination - is a key element of the professional development policy at Bankinter: in addition to facilitating knowledge of the Organisation and a comprehensive overview of the business, it encourages the mobility and promotion of the staff, and makes greater organisational flexibility possible. One of the key aspects is the development of the Bank's values: Responsiveness, Enthusiasm, Integrity and Originality, so that they can be shared and taken on board by the organisation as a whole.

Bankinter Annual Report 2009 49 4. Intellectual capital > Human capital > Structural capital >Relational Capita Structural Capital Indicator 2005 2006 2007 2008 2009 Management and strategic management % of hierarchical levels involved in preparing the Group's strategic plans 35 33 29 31 31 % of employees who know the Bank's objectives 100 100 100 100 100 Management information available to all employees (%) 96.70 96.45 96.61 97.00 97.20 De-layering and transparency Number of people participating in 360 evaluation 3,432 3,874 4,165 4,456 4,398 Average number of evaluators per employee evaluated (applications sent / total headcount evaluated) 10 11 11 12 12 Average number of persons evaluating each Management Committee member (requests sent/ members of the management committee) 73.12 75.80 81.00 74.00 87.00 Flexibility (%) Internal job rotation 29.01 34.46 29.95 26.87 26.04 % of employees who have logged on remotely (%) 54.20 38.46 35.70 35.78 35.64 Number of remote log-ons 159,006 104,546 141,443 146,303 122,634 Time logged on remotely per user (min.) 20,710 10,757 11,963 10,009 7,305 Employees accessing the internet daily from the Bank's platform 70.35 61.97 69.65 62.25 91.52 Employee suggestions implemented (per thousand) 34.63 24.91 75.71 54.91 80.42 % persons with corporate laptops 13.55 23.66 28.68 30.23 27.86 % persons with corporate mobiles or blackberries 50.12 Technology & process quality % of employees with intranet access 100 100 100 100 100 Number of employees contributing to development and maintenance of intranet content 84 104 146 152 340 % of employees with access to email 100 100 100 100 100 MIPs at central host / employees 0.73 0.88 0.97 1.07 1.18 Daily e-mail traffic (daily average in a 7-day week) 239,466 336,690 375,536 NA 210,608 Number of quality actions and projects developed 389 141 96 0 N.A. Number of quality actions and projects awarded 10 10 10 0 N.A. % of branches with internet stations & telephones connected to the Telephone Banking platform 100 100 100 100 100 Note: there are no data on the number of quality projects and actions developed or the number of quality projects and actions awarded prizes, as the project assessment committee does not meet until March 2010.

Bankinter Annual Report 2009 50 4. Intellectual capital > Human capital > Structural capital >Relational Capita Relational Capital Relational capital refers to the value of a company's interactions with the outside world: customers, suppliers, social partners, society etc. It is worth highlighting within this block the development of new indicators that reflect Bankinter's commitment to the wellbeing and quality of life of society as a whole. In the 2009 financial year, Bankinter made special efforts in its social action programmes, with new and more innovative projects benefiting the disabled or disadvantaged groups, implemented in collaboration with specific entities that have particular renown in social aspects. Relational Capital Indicator 2005 2006 2007 2008 2009 Customer Relations Number of non-specialised and foreign branches 318 332 360 372 369 Number of Virtual Branches 498 527 552 407 399 Number of Bankinter Agents 1,007 1,003 996 920 683 Number of SME Management Centres 105 124 161 145 102 Number of Business Management Centres 45 50 51 51 47 Number of Private Banking management and advice Centres 37 41 47 50 62 Employees per Branch or Management Centre 7.35 7.28 7.32 7.27 7.77 Staff directly involved in the business (%) 74.46 74.13 74.83 67.25 81.46 New active customers (%) 13.55 14.46 12.57 10.80 4.73 Annual growth in Average Total Assets (%) 31.64 17.51 11.24 7.24 7.05 New active customers per employee 22 24 21 19 8 Quality and customer satisfaction % of financial incidents resolved in 48 hours 83.95 81.81 70.6 50.02 52.53 Number of complaints to Ombudsman per active customer 9.81 7.55 7.56 8.99 14.87 Number of complaints processed by Bank of Spain per active customer 2.02 1.78 1.50 1.55 6.65

Bankinter Annual Report 2009 51 4. Intellectual capital > Human capital > Structural capital >Relational Capita Human Capital (cont.) Indicator 2005 2006 2007 2008 2009 Multi-channel banking development Transactions through channels other than Branch Network as % of total Bank transactions 67.46 68.67 68.84 67.86 67.04 New customers through channels other than Branch Network as % of total new customers 41.80 47.19 39.10 42.45 47.11 Telephone Platform Calls answered by Telephone Platform / Staff 2,114 1,894 1,608 1,385 963 Enquiries and incidents reported to Telephone banking and managed through e-mail/ telephone banking staff 263 274 210 209 197 Active Telephone Banking users as % of total active customers 65.05 67.10 68.89 73.84 62.78 Transactions through Telephone Banking as % of Bank total 7.46 6.90 6.00 6.07 5.27 % calls Incidents processed by automated service 56.63 55.95 54.16 50.43 44.91 Branch network and Virtual Banking Growth in number of Virtual Banking customers (%) 5.45 6.10 4.83 4.04 3.46 Virtual Banking transactions through channels other than Branch Network/ total transactions of Virtual Banking customers (%) 98.70 98.87 98.93 99.02 98.79 Growth in number of Agency network customers (%) 9.40 11.84 8.01 6.84 Agency network transactions through channels other than Branch Network/ total transactions of Agency Network customers (%) 97.78 97.15 96.76 96.76 97.88 Internet Internet customers as % of total customers 26.97 27.28 27.2 24.94 24.92 Transactions through bankinter.com as % of Bank total 51.94 53.71 55 53.76 54.89 Internet log-ons per active user 96.29 104.6 107.86 99.06 99.30 Equities activity through Bankinter Broker (%) 75 78.46 80.97 82.47 72.61 New customers signed up by Internet as % of total new customers signed up by the Bank (%) 17.00% 16.29% 15.19% 21.42% 3.87% shareholder and investor relations Channels available to shareholders and investors 9 9 9 8 8 Number of publications aimed at shareholders and investors 33 24 19 19 34

Bankinter Annual Report 2009 52 4. Intellectual capital > Human capital > Structural capital >Relational Capita Human Capital (cont.) Indicator 2005 2006 2007 2008 2009 Support for Education, Culture and Innovation Alliances and collaboration projects with academic and research institutions 63 66 73 71 72 Number of conferences organised by the Bankinter Innovation Foundation to disseminate its findings among 14 11 10 8 13 Spanish businesses. Number of experts (scientists, economists, sociologists, businessmen, etc.) who participate in the forums organised by the Bankinter Innovation Foundation. 133 148 183 220 277 Brand awareness Awards or public recognitions received by Bankinter 18 21 18 25 30 Positive and neutral assessments made in reports on Bankinter in the media in the target market 88.92 97.61 95.28 82.84 88.55 Social action Number of agreements reached to include people with disabilities on the staff 5 5 6 6 7

Bankinter Annual Report 2009 53 5. People and knowledge management > People: what sets Bankinter apart > Bankinter, a great place to work > People management People 5People and knowledge management In such a difficult current environment, Bankinter continues to be considered one of the best places to work. The Bank is committed to a model that encourages motivation and the commitment of its employees to the results of the company, always from the premise that its workforce is its main asset. Marta Prieto, Personnel Manager

Bankinter Annual Report 2009 54 5. People and knowledge management > People: what sets Bankinter apart > Bankinter, a great place to work > People management Who we are Graduates Training 4,509 73.8% 95.6% of the workforce Work climate Motivation Satisfaction Participation 76% 79% 82% 26 nationalities Andorra, Argentina, Belgium, Brazil, Bulgaria, China, Colombia, Cuba, Denmark, Ecuador, France, Germany, Ireland, Italy, the Netherlands, Paraguay, Peru, Romania, Russia, Spain, Sweden, Switzerland, United Kingdom, United States, Uruguay and Venezuela

Bankinter Annual Report 2009 55 5. People and knowledge management > People: what sets Bankinter apart > Bankinter, a great place to work > People management Management of personnel in a different social and economic environment The Bankinter People and Knowledge Management area works with the aim of creating conditions for the optimum development of the potential of the Bank's employees, providing an excellent working environment in which they can be proud of what they do, enjoying their relationships with the people they work with, and wherever possible balancing professional and personal life. Bankinter is committed to a model that encourages motivation and the commitment of employees to the results of the company. Thus it has strengthened its communication strategy and managed the demands for flexibility necessary, with rotation policies suited to the experience and knowledge of each employee. In 2009, we worked to ensure that Bankinter was a different working environment - free, open, non-hierarchical, creative and motivating, capable of creating working conditions and opportunities for professional development that enable professionals to make the most of their qualities and potential. Bankinter continues to invest in training, encouraging the development of talent and improving the direct involvement of its professionals in decision-making processes and the introduction of significant improvements and innovations. Work climate The work climate study is a corporate space for participation and communication which enables all employees, every two years, to freely express their opinion, directly and confidentially, on important issues for their work and the Bank, through an online questionnaire. The aim of the study is to strengthen and put into practice the principles of transparency and freedom at the same time as being, for the Bank management, a valuable management tool. Getting an exhaustive view of the opinion of professionals is the best way to improve management. At Bankinter, the satisfaction and commitment of employees are key factors in the achievement of the business's results, and further evidence of how different the Bank is from the competition. 82% of employees took part in the survey carried out in 2009, exceeding the 2007 participation levels (81%) and showing, once again, the importance that Bankinter employees give to this space for direct communication with the management of the Bank. The results reflect the high levels of commitment of the entire workforce to the corporate project and the corporate management of the company in the current difficult economic environment, reaching excellent levels of professional satisfaction (79%) and motivation (76%).

Bankinter Annual Report 2009 56 5. People and knowledge management > People: what sets Bankinter apart > Bankinter, a great place to work > People management Being exceptional on a daily basis is the spirit with which Bankinter faces day to day challenges; the commitment to be a Bank constantly striving for excellence. Among the highest ranked factors were also: Corporate management (85%), corporate culture (82%), team environment (88%) and job satisfaction (82%). 2005 2007 2009 Satisfaction Index (%) 70 79 79 Motivation Index (%) 73 73 76 Participation in opinion poll (%) 71,4 81 82 Note: Metrics in 2009 were changed, counting for percentages employees who scored between 7 and 10 (on a scale of 1 to 10). Data from 2005 and 2007 has been recalculated Being exceptional on a daily basis is the spirit with which Bankinter faces day to day challenges; the commitment to be a Bank constantly striving for excellence. Bankinter, a great place to work in Spain For the sixth year in a row, Bankinter was selected by the Great Place to Work institute as one of the best companies to work for in Spain. This is the conclusion of the study which the Institute carried out in 2009 after asking 177,923 employees from the 250 participating companies and comparing their results. In this year's version, which was particularly difficult and intense for our sector, Bankinter was the only financial entity, and also the only Ibex 35 company included in the list of companies with more than 1,000 employees, alongside companies in sectors such as the pharmaceutical, information technology, retailing, healthcare, professional services and consumer goods. This is a recognition of huge value, as it shows our capacity to work together - Bank and employees, to get through difficult and demanding times such as we are experiencing at the moment. Bankinter was also selected and recognised, for the third consecutive year, as TOP EMPLOYER 2009 in Spain by CRF Institute, which recognised Bankinter as one of the best Spanish companies in terms of its human resource practices. Bankinter also received the top score for working conditions, for which the study evaluates criteria such as communication, knowledge management, continuous improvement, conciliation measures, teamwork, employee support and recognition measures. Both recognitions are support for Bankinter's People management model, which promotes a working environment aimed at high performance through active knowledge management and the professional development of employees, supported by corporate values and a culture of freedom, transparency, innovation and management of the talent of people.

Bankinter Annual Report 2009 57 5. People and knowledge management > People: what sets Bankinter apart > Bankinter, a great place to work > People management People management Bankinter is an organisation that is constantly evolving, innovative, with principles and a people management model which are clearly defined, in line with the Bank's mission and corporate culture. Bankinter's people management model takes the form of the application of a range of human resources policies based on communication, and which encourage the creation of value and the improvement of results, having a positive effect on the commitment and satisfaction of the employee. These policies seek to provide an environment that facilitates and motivates this commitment, an environment characterised by team work, training, professional development, the promotion of talent and equitable remuneration. Training Bankinter continues to be firmly committed to the training of its employees, maintaining training levels in line with previous years: the number of training hours per person is 53.6, the percentage of people trained reaching 95.6% of the workforce. Training efforts focused on advisory services, markets, products and risk policies and control, taking advantage as far as possible of employees' in-house experience and internally available technologies (video conferencing, data conferencing, online training etc.) Only in those cases where very specific technical knowledge is required are external professionals used. Not to forget the specific training given to people rotated internally (26%), new hires and training in issues that are very important to Bankinter, such as innovation. Making the most of the knowledge accumulated through the Bankinter Innovation Foundation, training programmes were initiated to encourage innovation among the workforce, with the management team of the Bank acting as teachers and making knowledge from experts worldwide available to our internal teams. The aim is for training to continue to be an element that differentiates Bankinter within the financial sector, and among Ibex 35 companies, supporting the strategy of the Bank and contributing to the personal and professional development of the people who work in the Bank, making the maximum use of the internal experience and technical capacity available. Development and management of talent, driver for change and differentiation in the medium term Bankinter promotes career development based on merit and on active management of talent within the organisation. Talent management, in which the Bank has been working since 2003, has a strategic value for Bankinter. Its aim is to identify young people who have the greatest potential for development and lowest visibility within the organisation, bringing hidden talents to light. This year a new tool, already used in the Bank for external selection processes, was introduced in the talent selection process. This is a working personality test which compares the profile of the candidate with a profile defined for the talent, in which qualities such as leadership, innovation and strategic vision have a specific weighting, suitability for the talent profile

Bankinter Annual Report 2009 58 5. People and knowledge management > People: what sets Bankinter apart > Bankinter, a great place to work > People management being determinant as to whether the person joins the group or not. The people who undergo the test have been pre-selected by the people managers in the Potential Evaluation. This evaluation takes into account: the employees current abilities, their suitability for the post they occupy, the assessment of their performance and professional conduct, such as - Superior performance - Anticipating change and active seeking of solutions - Team work - Advanced learning capacity - Development capacity - Resistance to pressure - Customer service. - Capacity to create value - Pride in belonging. - Commitment - Capacity for delaying gratification From this are designed policies of training, rotation and promotion in line with each specific need. Once the results have been analysed and compared through a personal interview held with each of the people that make up the group, and once they have been shared with their managers, the programme is activated such that these employees can acquire the experience and know-how necessary for their career development. The entire subsequent process of monitoring the defined programme is overseen by the People Management department in coordination with its direct managers With this process, the Bank identifies the people with the greatest development potential and, from these, the group which is best suited to the type of talent that the Bank requires: innovative, committed people with high leadership skills, and which have the values of the company's corporate culture. It is important to identify them, but also to retain them. For this there is a specific programme which has the aim of preparing these people to hold positions of greater responsibility in a short period of time. In 2009, 532 people were identified (11.8% of the workforce), with development potential, and 100 people (2.2% of the workforce) as being best suited for the Bankinter talent profile. These latter form part of the talent group and participate in a specific development project. The Bank carries out, with the support of certain indicators, a differentiated monitoring of the identified group, in which it is possible to compare data with the other people who are not included in the talent project.

Bankinter Annual Report 2009 59 5. People and knowledge management > People: what sets Bankinter apart > Bankinter, a great place to work > People management Indicator (%) Persons identified with Talent Total People Talent Potential Bank Internal job rotation 25.00 24.62 26.04 Promotions 6.00 6.95 3.07 men 4.00 3.01 1.48 women 2.00 3.95 1.59 As well as the above the Bank has, for the professional development of people with policies of internal rotation, specific management of the careers of executives and a vacancy management process (evaluation of the merits and qualities of each potential employee). Remuneration Bankinter's remuneration policy is designed to reward individual effort and also collective work. Between 10 and 30% of the salary is variable for 75% of the workforce, depending on the attainment of the targets set for each year. Exceeding targets could lead to earnings of up to 220% of the quantity that each employee has as variable remuneration, Other incentives depend on customer satisfaction surveys. Quality, another foundation of Bankinter's value proposal, affects the salary of 100% of the employees, depending on the perception of their work by external and in-house customers. A third element is the sales bonus, the purpose of which is to incentivise and reward the sales activity of persons who are in business centres. A fourth element is flexible remuneration of staff through the flexi-pay system. This is a voluntary remuneration system in which there is an individual agreement between the Bank and employee for the modification of the composition (not the quantity) of the employee's pay package. Pursuant to this agreement, monetary payment can be replaced by payment in kind, chosen individually and voluntarily by the participant, and taking the form of various products made available, which generally have some kind of tax benefit. The benefit for the employee is in maximising remuneration, in two main ways: through the Bank's negotiating power as regards the price of certain products and/or services, and through the tax advantages accruing to certain products contracted through this system.

Bankinter Annual Report 2009 60 5. People and knowledge management > People: what sets Bankinter apart > Bankinter, a great place to work > People management Respect for employees' rights and interests The Bankinter Group guarantees the effective exercise of the rights of unionisation, association and collective bargaining, as well as the right to privacy in the legally established terms and in accordance with the specific allowances laid down to this end in the Bank's Code of Professional Ethics. It handles everything to do with employees' personal, medical and financial details with due confidentiality. It also respects the personal communications of its employees via the Internet and any other means of communication. Corporate Volunteer Work Support for the community is one of the corporate principles of Bankinter, developed through good corporate governance, the creation of jobs, the employment of the disabled, etc. The Bank encourages corporate volunteer work, through the active participation and involvement of the employees themselves, in social areas that they themselves choose: disability, the environment, digital literacy, children, etc. Corporate Volunteer Work at Bankinter seeks to lead a new way of understanding business that is more socially committed and participative, and is focused on achieving an organisation that is committed to the problems of the community in which it operates. In short, a company that also feels responsible in the quest for solutions, and which is sensitive to the social environment we live in.

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Bankinter Annual Report 2009 62 6. Business > Economic and financial conditions > Customer resources and loans and Business receivables > Customer segment > Capital Markets and Treasury 6Business While the Spanish economy has contracted by 4%, the financial system has shown signs of solidity compared with that of other countries. In this context, Bankinter has continued to show its commitment to growth in the High Income and Business Customer segment, and to the development of sustainable and profitable business. Ángel González Migaraya Manager of Madrid Main Office

Bankinter Annual Report 2009 63 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury However, the financial system has shown evidence of great solidity, comparing positively in this respect with that of other countries, which have required deep interventions. Economic and financial environment In 2009, the global economy showed the first symptoms of recovery since the beginning of the crisis, which formally began in the middle of 2007, although this upwards correction is uneven, depending on regional variations. The stabilisation of the global financial system and a US property market that has probably bottomed out have been the two key factors that have enabled the progressive recovery of confidence and, by extension, the stock markets. Governments and central banks continued to play the leading role which they assumed in 2008, with further generous stimulus packages and liquidity measures which initially prevented the crisis from deepening, and at the time of writing there are signs of recovery. Nevertheless, the incipient cyclical change needs to be consolidated, as it is still in an embryonic phase and still subject to regional imbalances. Spain has been no exception in such a difficult environment, the economy contracting by 3.6% in 2009. The construction and private consumption segments were severely affected, causing a notable deterioration in employment levels at the same time as reducing any inflationary pressures. However, the financial system has shown evidence of great solidity, comparing positively in this respect with that of other countries, which have required deep interventions. Interest and currency rates The world's leading central banks have been forced during this crisis to cut their interest rates, in many cases down to historic lows. Thus the US Federal Reserve cut rates to 0.00%/0.25%; the Bank of England to 0.5%; the ECB to 1%; and the Bank of Japan kept its baseline rate at 0.1% (after a cut to 0.5% in 2008). Once monetary policies had reached their limits, central banks moved on to more unconventional measures (quantitative easing and the purchase of assets on the market, mainly) to boost economic activity, managing to achieve a progressive recovery of confidence in the global financial system and greater availability of credit for their respective economies. However, the severe stress to which the international financial system has been subjected has led to the implementation of more demanding risk assessment parameters, which will probably remain in place for a period of time that it is not possible to pinpoint today. The following table shows changes in base rates set by the main central banks since 2007, the year in which the crisis formally began. Official Interest rates (%) 31/12/2007 31/12/2008 31/12/2009 Euro zone 4.00 2.5 1.00 US 4.25 0.25 0.0/0.25 United Kingdom 5.5 2 0.5 Japan 0.5 0.1 0.1

Bankinter Annual Report 2009 64 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Sovereign (government) bonds have been supported by these unusually low interest rates, fear of deep recession during the first half of the year looming larger in investors' minds than the recovery of confidence at the end of the year. Not even generous bond issues carried out by states to finance stimulus plans and halt the decline in tax revenues as a result of the economic slowdown have managed to boost internal rates of return (IRR). On the other hand, corporate bonds increased in price in the context of issues becoming more attractive (returns offered), but especially because of the gradual reduction in the risk premium as the global context returned to normal. As regards currencies, the yen fell by 4.9% against the euro and by 1.8% against the dollar, losing its role as a safe haven currency as the situation returned towards normal. Euro/dollar rates were back and forth over the year, with the euro rising until November, only to lose ground in the last two months of the year faced with faster economic recovery in the US and the poorer solidity of the public finances in certain European states, which has caused rating agencies to revise the ratings of certain countries. Despite this, the euro closed 2009 up slightly (3.1%) against the US dollar. International stock markets We can divide 2009 into two stages: major dips until March, due to the inertia carried over from 2008, followed by swift recovery from the end of that month onwards. Increases were widespread but particularly notable in emerging economies. Sectorwise, recovery has also been asymmetrical, with utilities and telecommunications lagging further behind, as is usually the case in an environment that is evolving towards higher risk tolerance. The following table shows the changes in the main stock markets in 2009 and 2009, in local currency throughout: References 2008 (%) 2009 (%) Spain Ibex-35-39.4 29.8 US S&P 500-38.5 23.5 US Nasdaq -41.9 53.5 Europe EuroStoxx 50-44.4 21.0 United Kingdom FTSE 100-31.3 22.1 Germany DAX -40.4 23.8 France CAC -42.7 22.3 Japan Nikkei -42.1 19.0 China Shanghai (B) -69.7 127.6 Brazil Bovespa -41.2 82.7 India Sensex -52.4 81.0 Source: Bloomberg:

Bankinter Annual Report 2009 65 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury It was also a year in which the three basic pillars when it comes to offering new products and services to its customers were reaffirmed: quality, multi-channel services and innovation. Customer funds and loans and receivables In 2009, Bankinter's process of consolidation and positioning in a strategy of sustainable and profitable business continued, based on growth in customer resources and the maintenance of stable lending. And all of this, leveraged with a wide, flexible and personalised range of products, offered through a commercial network that focuses on advising customers and providing them with service quality. Customer funds (Thousands of euros) It was also a year in which the three basic pillars that, historically, have been key to the Bank when it comes to offering new products and services to its customers have been reaffirmed: quality, multi-channel services and innovation. From this viewpoint, Bankinter maintains a rising trend in attracting customer resources, based on a personalised, varied and quality offer, as well as selective and profitable growth of its lending, in line with the strategic guidelines set forth as to the quality of assets which, combined with the current economic 31/12/2008 31/12/2009 Diff. Thousands of euros 09/08 (%) Creditors 23,519,381 22,061,329-1,458,052-6.20 Public Authorities 944,963 494,874-450,089-47.63 Residents sectors 21,831,401 20,883,557-947,844-4.34 Current accounts 8,231,492 9,458,932 1,227,440 14.91 Savings accounts 91,452 114,846 23,394 25.58 Time deposits 7,896,623 6,129,519-1,767,104-22.38 Asset repos 5,611,834 5,180,260-431,574-7.69 Non-resident sectors 586,601 589,727 3,126 0.53 VALUATION ADJUSTMENTS 156,416 93,171-63,245-40.43 Debts represented by negotiable securities 13,833,521 17,971,994 4,138,473 29.92 Total 37,352,902 40,033,323 2,680,421 7.18 Off-balance-sheet funds managed 8,112,898 8,031,397-81,501-1.00 of which: Investment funds 5,462,709 5,216,266-246,443-4.51 Pension funds 1,073,111 1,213,089 139,978 13.04 Commercial paper 25,403 25,403 0 0.00 Government bonds held to maturity 212,482 175,471-37,010-17.42 Wealth management 1,339,193 1,401,168 61,974 4.63 Total Off-balance-sheet funds 8,112,898 8,031,397-81,501-1.00

Bankinter Annual Report 2009 66 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Structured deposits 225.9 Millions of Euros environment, has led to lower growth rates but, at the same time, to our closing the year with a non performing loan rate of 2.5%, the lowest in the financial system. Customer funds Bankinter ended 2009 with EUR 40.03 billion in customer funds, which was 7.2% higher than in 2008 (EUR 2.68 billion more). Throughout the year, Bankinter maintained its strategy of personalised deposit offers, aimed at increasing the capture and retention of balances and customers, This strategy took the form of different lines of action: from deposit campaigns at attractive interest rates, of which the Bank launched three, with great success, to deposits on which the return is linked to the taking out and keeping of other investment products, so that the customers with the strongest links to the Bank receive the best returns on their balances. During 2009, structured deposits were reaffirmed as a stable investment option for Bank customers in the current climate, linking the return on them to benchmarks other than interest rates, indexing them to stock market performances, shares or commodities, although without investing directly in these underlying assets. Bankinter maintains a constant, varied and flexible offer of mass structured deposits, which can be accessed with a minimum investment of EUR 1,000. In most sales actions this past year, the total amount initially envisaged had to be doubled and even tripled to meet demand. This product, which is guaranteed by Bankinter, was one of the most successful: 34 structured deposits sold during the year, with total inflows of EUR 225.9 million. The year closed with total structured deposits of EUR 382.7 million. Loans and receivables Despite the current economic situation in general and the credit situation in particular, Bankinter continued to be committed to profitable, diversified and, in terms of asset quality, healthy growth in lending to both households and businesses, as is reflected in the high proportion of total lending that is covered by in rem guarantees, particularly mortgages. These factors, together with appropriate policies for risk approval and control, enabled Bankinter to post a non performing loan ratio of 2.5%, one of the lowest in the market. Mortgage lending continues to be one of the pillars of our lending, despite the adjustment caused by the stagnation of the property market, although we would also point to the growing importance of financing associated with corporate business, which is becoming a key segment for developing the Bank's financing activities. At 31 December 2009, the Bankinter Group's average lending amounted to EUR 41,844 million, representing an increase on December 2008 of 1.61%, and the non-performing loans ratio, exsecuritisation, was 1.95%. There was no change in the selective strategy applied to the mortgage business, either in terms of types of customers or in the quality of the loan assets generated. Consumer finance follows, with the consolidation of pre-authorised personal

Bankinter Annual Report 2009 67 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Cards issued 964.875 cards in 2009 loans, a simple and direct financing formula, and one which the customer can access through any channel. And finally, business financing of legal entities, supported by a comprehensive offering of products and services (all-in management of payments, factoring, financing lines, etc.) directed at small and medium enterprise customers, most of which can be accessed and used through remote channels such as the internet, telephone or mobile phone banking. In terms of personal loans, in 2009 there were reductions in the business, both in terms of new operations and volume. The number of new personal loans was 11,487, compared with 14,262 in 2008; and average limits granted were EUR 12,712 compared with EUR 13,688 the previous year. This meant reductions of 19% and 7% respectively. Lending with in rem guarantees decreased by 0.14% in 2009 to EUR 28,498 million. New lending amounted to EUR 2,537 million. As is becoming customary, most of this annual lending relates to customers with a medium or high profile. Lending portfolio by geographical areas Average balance Diff. 2009/2008 Lending (%) Regional HQ Catalonia 4,852,764 42,458 13.34 Regional HQ Eastern Spain 4,965,230-24,940 13.65 Regional HQ Northern Spain 3,032,174-149,291 8.33 Regional HQ Navarra-Aragón-Rioja 2,070,265 84,794 5.69 Regional HQ Las Palmas 944,980 11,293 2.60 Regional HQ Tenerife 695,385-2,020 1.91 Regional HQ Balearic Islands 803,842 27,240 2.21 Regional HQ North-Western Spain 1,581,212-34,622 4.35 Regional HQ Madrid West 5,311,982 288,244 14.60 Regional HQ Madrid East 3,997,490 86,996 10.99 Regional HQ Madrid Corporate Banking 1,264,617 113,809 3.48 Regional HQ Castile and Leon la Mancha-Extremadura 1,223,447 60,055 3.36 Regional HQ Andalusia 4,420,158 217,235 12.15 Network support 1,128-963 0.00 Branch network 36,388,218 758,709 100

Bankinter Annual Report 2009 68 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury The significant decline in domestic consumption was reflected in the two main magnitudes of the business. The number of transactions performed using Bankinter cards in retail outlets and ATMs amounted to 52.28 million, for a total volume of EUR 3,849 million, representing decreases of 0.2% and 4.4% respectively compared with 2008. The number of cards issued stood at 964,875. As in previous years, Bankinter joined the various ICO 2009 lines as a collaborating company, such as entrepreneurs, SMEs, business growth and internationalisation, SME mortgage moratoria and liquidity, etc. all of these within the framework of the "Economic and Employment Stimulus Plan", the aim of which is to boost and support productive investment by Spanish companies, promote projects by self-employed persons and SMEs and facilitate access to credit for citizens and households. International business With full integration into the Product division, the Bank's International Business department continues to specialise in the distribution of products and services which meet, fundamentally, the operational and financial needs of Spanish companies that buy and sell in foreign markets, whether within the EU or beyond it and thus normally denominated in foreign currency. Throughout the 2009 financial year we concluded the implementation of the new commercial model, designed at the end of 2007, a job carried out by the business directors established in Bankinter's main regional headquarters. This model, in line with the Bank's commercial strategy, seeks to offer customers a different and differenting value proposal, constructed on the basis of advice and supported by: Operational Excellence through the international operations centre, a pioneer in the model of operational standardisation implemented by the Bank in this past financial year. External website where the online currency broker, the first in the Spanish market, has consolidated its position as a channel for contracting currency risk hedging operations for our business customers. International business specialists, an exclusive call centre specialising in online attention and advice relating to foreign trade, both in purely financial aspects and those associated with means of collection and payment and the security of commercial operations themselves. In quantitative terms, and as was to be expected, Spanish foreign trade suffered falls of close to 30% compared with 2008 due to the recession deriving from the international crisis.

Bankinter Annual Report 2009 69 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Assets managed 5,216 Millions of Euros Other business Bankinter Asset management As part of the value proposal to customers, the Bankinter investment funds offering has a very significant weighting. The distribution of assets in the investment fund portfolio did not change significantly from that of 2008. The strong volatility of the markets led participants to seek refuge in monetary funds, although as the year progressed, and with a more favourable stock market performance, the total of monetary funds fell to 58.9%, compared to 63.5% of the total portfolio for the previous year. Equity funds, along with mixed funds, were those that benefited most from this improvement in stock market performance, together totalling more than 15% of the total portfolio. Distribution of investment funds by categories Likewise, Bankinter, adjusting to the situation of markets and the needs of customers, decided to increase its investment fund offering, creating several new funds. In the commodities market, the Bankinter Materias Primas, FI, fund has been commercialised, bringing in significant profits over the year/ Likewise, to complete the wide range of existing funds, two more fixed corporate funds were created: Bankinter Selección Bonos Corporativos, FI and Bankinter Estrategia Renta Fija, FI, as well as a new environmental management fund: Bankinter Gestión Ambiental, FI. In the SICAV management field, Bankinter was one of the most active institutions in the Spanish market, with a 7% growth in the number of managed SICAVs, being the financial institution which has grown the most. The Bank closed the year with a total of 240 SICAVs managed, placing it third in international rankings. Money market funds 58.94% Fixed Income funds 7.24% Mixed funds 3.85% Equities 12.09% Guaranteed 16.22% Alternative management funds 1.07% General 0.60%

Bankinter Annual Report 2009 70 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury NSI Broker 73.8 Equities The Equities business groups together all the business and income generated by the deposits and operations of customers in the stock market and derivatives market through the different instruments and channels that the Bank makes available to them. At the close of 2009, one in every five customers had at least one securities account in Bankinter If we focus on high income customers, this figure rises to one in every two. The nominal value in these accounts totals EUR 8.63 billion, up by 6.4% on the close of 2008. With respect to cash on deposit, the figure reaches up to EUR 18.6 billion at the close of 2009. Gross Income +15% Online stock market operations out of the Bank total 86.6% On the eve of the 10 years anniversary of Bankinter Broker, a pioneer in online stock market distribution, the Bank continues to lead the way in the value proposal offered to retail investors that operate on the stock market. The broad range of products and services made available to the customer include: cash operations on the domestic market and main international markets, as well as derivative operations: warrants and futures. More recently other types of services have been incorporated, such as the possibility of trading on credit - to make the most of opportunities in both rising and declining markets - as well as the chance to contract an extensive range of ETFs exchange traded funds) which enable the investor to combine the flexibility of stock market investment with the possibility of diversification offered by investment funds. It is also worth highlighting a number of other added value services offered by Bankinter Broker, such as the wide variety of orders (stop, dynamic, referenced, related, with conditions and restrictions, etc.) that the customer may use for better risk management. In respect of the number of orders, activity during this past year was very similar to that of 2008, with a fall of 3%. However, the cash volumes negotiated by customers suffered a decrease of 14.5%. The Gross Incomes obtained in this business area increased by 15%, which shows, on the one hand, the solidity and attractiveness of Bankinter's value proposal in terms of the offer of products and services, and on the other hand the ease and quality of operations perceived by customers. This ease of use is reflected, for example in data on distribution through operational channels by customers. Thus, 86.6% of operations are carried out online, 10.5% in the network of offices, 1.5% by telephone banking and 1.3% by mobile banking. In terms of perceived quality, it is necessary to indicate that, according to customer surveys, the "Recommend Bankinter" category has an NSI of 73.8 points, other categories also being notable, such as "Availability" (NSI 79.7), Ease of use (NSI 78.2) and "Speed of Operations" (NSI 80.6).

Bankinter Annual Report 2009 71 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Obsidiana Bankinter Consumer Finance continued to consolidate its presence in the consumer finance market in Spain both through its main brand, Obsidiana, and through various strategic alliances with other entities. This past year was particularly difficult in the consumer financing market in Spain, particularly due to the reduction in consumption. Despite this, the 2009 financial year was positive, posting profits, and with average customer lending of EUR 421 million, up 17% on the previous year. These results, which were achieved thanks to an investment policy focused on the risk-profitability trade-off, given the importance to the consumer business of adjusting the price of each offer according to the customer profile function, to thus guarantee profitability. In line with the macro-economic situation, cost control was strengthened, as was investment in marketing, increasing the company's efficiency. The growth lines were focused on the segments whose risk and return profile justified it. This is why, during this financial year, Bankinter Consumer Finance limited its growth, reaching, at the close of the year, 445,576 cards issued, meaning a slight decline of 1% compared with the same figures in 2008. The satisfaction of these more than 400,000 customers was also a key factor in the profitability of the business in the 2009 financial year. The mission of Obsidiana is to meet the financing needs of customers, providing them with the most suitable financial product and service at any given time, but above all providing them with flexible payment for the management of their day to day financial needs. In this respect the year saw numerous risk control initiatives, although the most notable is the fact of having created a separate recoveries unit, which makes it possible to internally manage non performing loans with better results, at the same time saving costs.

Bankinter Annual Report 2009 72 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Insurance 11 M in new accident risk premiums Operador Banca Seguros During the 2009 financial year, the life insurance company reached a total premium volume of EUR 227 million, the largest figure in its history. Following the plan established in 2007 after the alliance signed with Mapfre Vida, the insurance business has continued to grow in terms of both endowment and term life insurance. In endowment life insurance, the main product in terms of collection of premiums was the "Segurplus", launched in 2008, and which during 2009 collected premiums of EUR 114 million. General insurance premiums collected totalled EUR 34 million in 2009. In both life and general insurance, these are increasingly becoming independent of the Bank's mortgage product, a sign that the insurance business is an activity gaining a strong foothold in the company. Finally, the pensions business saw an increase of 13% as a result of market recovery. Total assets in 2009 totalled EUR 1.21 billion In term life and casualty insurance, figures continued their excellent growth of previous years, totalling EUR 11 million in new premiums. In this area we should highlight the launch of a standardised average capital life risk product, called "TAR Express", characterised by the immediacy and simplicity of its contracting system, with a very simplified health questionnaire. Within the general insurance business, and in line with the ever increasing importance of the companies business, we should highlight multiple risk insurance of companies and businesses. Likewise, also notable is the launch of a new product which covers the civil liability of directors and managers, a product which is innovative in terms of ease of use, and reaching an insured capital of EUR 352.6 million.

Bankinter Annual Report 2009 73 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Policies 1,700,000 Línea Directa Aseguradora In 2009, Bankinter decided to purchase from Royal Bank of Scotland the 50% of Línea Directa Aseguradora which it did not already own, for EUR 426 million. Línea Directa - a company specialising in the direct sale of car, motorcycle, company fleets and home insurance, founded in 1995, became in just fourteen years the insurance company with the greatest organic growth in its sector. It currently has more than 1,700,000 policies, is fifth in the national ranking of vehicle insurers and has more than 1,800 employees. The group closed 2009 with pre-tax profit of EUR 94 million and premium billings of more than EUR 661 million. Its innovative business model, a pioneer in Spain, is based on direct contact with the customer, without intermediaries or agents, giving national coverage from a single location. For this it uses direct channels - telephone and Internet - applying the latest technologies, making it possible to largely reduce management times and costs. In this way, unlike the traditional model, Línea Directa is notable for having direct control of distribution, customer relations, information systems and telephone contact centres, which it owns and which are the heart of the company. The removal of intermediaries from the contracting process makes it possible to pass some of these savings on to the customer, reducing the price of the policy and re-investing the remainder into improving management and the creation of new products and services. In this respect the setting up of Línea Directa in our country has helped to transform the insurance sector. The management of Línea Directa is based on specialisation, commercial dynamism and prudence in risk selection. Main magnitudes of Línea Directa Aseguradora in 2009 Motor Home Linea directa Portfolio 1,634,862 69,352 1,704,214 Net Sales: 348,500 40,237 388,737 Retention Ratio (%) 83.3 77.5 83.0 Billing 650,899,942,78 10,606,527,83 661,506,470,61

Bankinter Annual Report 2009 74 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Customer Recommendation and Satisfaction indices by process (most recent surveys November/ December 2009) Línea Directa Asistencia Management of accidents Customer recommendation indicator 89.27 89.25 Customer satisfaction indicator 82.04 82.26 Breakdown of portfolio 2008 2009 Incr. % Number of policies in the portfolio 1,556,908 1,704,214 9.50 Number of motorbike policies 222,499 254,405 7.30 Total LDA policies (Junior and Young) 95,028 101,512 6.80 Total home policies 33,891 69,352 104.60 Total expatriate policies 61,182 62,584 1.80 Total business policies 56,166 62,700 11.60

Bankinter Annual Report 2009 75 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Customer segment New customers 73,303 New customers The number of active customers in 2009 totalled 773,952, of which 73,303 are new customers. In terms of the multi channel service, at the close of 2009 41% of Bankinter customers used at least two channels to communicate with the Bank, data which reflects the efficiency and successful acceptation of its multiple channel strategy - Internet - which encompasses 54.9% of total transactions and is the means of communication most used by customers. Once more Bankinter maintained its difference with its competitors in terms of its quality measurements, this year standing at an NSI of 4.8, placing the Bank above the market average in terms of individual customers. Key figures (EUR millions) 2008 2009 09/08 (%) Average funds (millions) ) 17,896.38 17,531.12-2.04 Average loans and receivables (millions) ) 41,180.52 41,843.98 1.61 Ordinary income (millions) ) 974.16 885.89-9.06 Efficiency (%) 48.33 49.91 3.27 Overall satisfaction (points) 75.68 74.52-1.53

Bankinter Annual Report 2009 76 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury High Income Continuing the competitive positioning in the high income segments initiated in 2008, during this past year we supplemented the range of products and financial tools, setting up a unique and high value offer for this customer profile. Likewise, new functions were implemented in the "Investments Advisor", an advice tool that offers investment proposals to customers depending on their desired terms and risk preferences. We also included more information monitoring the investment positions of customers, both in the full and investments statements, and in the new SICAVS web, all available online. And finally, we have expanded, with the inclusion of securities, leverage alternatives for the equity these customers already have. With a view to continue strengthening the differentiating offer for high income customers, the Bank continued to make progress in Wealth Services for customers in the Personal Finance segment. Among this range of products, those most in demand by our customers during 2009 were investments in profitable fixed assets, above all buildings and commercial premises in prime locations, with solvent tenants with solid long term leases. In the final part of the year we saw an increase in investor interest in photovoltaic solar energy farms, especially farms already in operation or pending, and with high technological quality. Responding to this demand, from Wealth services we have been offering profitable fixed assets and photovoltaic solar farms from customers disinvestment requirements and also partners who meet our high standards of quality and trust. Further, and taking advantage of the relationship and knowledge that Bankinter has of its customers, they also become suppliers of products, detectors of opportunities and generators of business for other high income customers. Also, we dealt with family protocol, corporate advisory requests and sought out partners or purchasers for unlisted businesses of our customers, in all cases using reputable collaborators. Bankinter Asset Portfolio Services offers a set of products and services that are designed to satisfy the asset management needs of customers not covered by traditional banking products, with the aim of providing higher income or wealth customers with comprehensive management of their family and business assets according to where they are in their life cycle and the degree of diversification that best suits their profile.

Bankinter Annual Report 2009 77 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Funds and intermediation 17,642 Millions of Euros Personal Finance The Personal Finance segment was reaffirmed with a value proposal focused on advice and quality of customer service. The main magnitudes of the business continued to progress, and growth through the attraction of new customers maintained the growth of previous years. All of this is supported by a team of highly specialised professionals who are assessed in Personal Finance customer surveys with high levels of satisfaction. In 2009 service quality, a fundamental factor underpinning our business, was perceived with a very high NSI evaluation score, 76.7, which clearly places us above the sector average. During the year, new services and products were launched, focused on integral wealth management of customers, and in this respect the area of wealth services, which covers property products, corporate advisory services, investments in "private equity", art, family protocols and socially responsible investments was consolidated as an item differentiating our value proposal. The combination of all these factors, together with an unbeatable IT platform and leading human capital in the sector is what enabled us to achieve a figure for assets under management and other intermediated products of EUR 17.64 billion at the end of the year. The growth in the number of SICAVs (variable capital investment companies) managed amounted to 7% more than in 2008, with Bankinter being the financial institution in Spain that grew the most in this area of activity, consolidating its position at the end of the year - with 240 SICAVs - as number three in the ranking by the number of collective investment companies managed, according to the Inverco ranking. Personal Finance highlights 31/12/2008 31/12/2009 09/08 (%) Average funds (millions ) 2,012.45 2,158.51 7.26 Average loans and receivables (millions ) 1,577.83 1,526.85-3.23 Ordinary income (millions ) 57.25 49.63-13.31 Efficiency (%) 24.39 29.83 5.44 Overall satisfaction (points) 77.57 76.66-0.91

Bankinter Annual Report 2009 78 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Private Banking 50,742 active customers Average loans and receivables +8.8 Private Banking Private Banking closed 2009 with a total of 50,742 active customers. Growth in new customers in Private Banking was 7,400. At the close of year we had Incidents processed EUR 9.42 billion, of which 57% were customer deposits and 43% intermediation. Also, average investment data increased by 8.8% over 2008, to reach EUR 2.81 billion. In terms of revenue, there was a 24% decline in interest and fee margins relative to the previous financial year, due mainly to the economic situation, which caused customers to seek refuge in deposits, many of which were paying over the odds. Throughout the year, after the minimum levels to which markets plunged in March, the Bank has increased the recommendation to take up variable income positions. Another section that was addressed in terms of sales was that of life insurance. Accordingly, customers in the segment were sold 3,578 policies for the sum of EUR 347 million in insured capital. In terms of installed capacity, Bankinter made the network more specialised, opening new Personal Finance centres which, alongside Private Banking, made a total at the close of the year of 62 centres distributed throughout Spain (50 Private banking and 12 Personal Finance), specialising in attention and advice for this type of customer. With the aim of maintaining the highest level of advisory capabilities, we updated and strengthened specific training programmes, adapting them to the requirements of the new MiFID regulations, giving numerous internal courses to the entire workforce. One new aspect worth mentioning is the creation of a personalised Private Banking website, which aims to give our customers information in line with their needs. Private Banking continued its commitment to intensifying its relationship with customers. It is precisely this variable, quality, that continues to be a strategic foundation underpinning the way we act, as shown by our closing the year with a Net Satisfaction Index (NSI) among customers in the segment of 74.8. Private Banking highlights 31/12/2008 31/12/2009 09/08 (%) Average funds (millions ) 3,854 3,820-0.9 Average loans and receivables (millions ) 2,580 2,807 8.8 Ordinary income (millions ) 110.86 83.83-24.38 Efficiency (%) 45.05 58.97 13.92 Overall satisfaction (points) 75.76 74.78-0.98

Bankinter Annual Report 2009 79 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Private Individuals average total assets +0.3% compared with 2008 Private individuals At the close of 2009, the Private individuals segment had a total of 411,594 active customers. Average total assets amount to 23,207 million euros in 2009, compared to 23,134 million euros in 2008, which represents a 0.3% increase. In balance sheet terms, the year ended with average controlled resources to the value of 6,474 million Euros; 73% of which are typical resources and the remaining 27%, brokerage. Lending stood at EUR 23,045 million at year end. Mortgage lending was the best performing product this year, with a total of 8,070 mortgage transactions completed, amounting to a total of EUR 1,205.1 million. The Bank's mortgage portfolio maintained its excellent risk quality, with a delinquency ratio of 1.2%, a figure that remains one of the lowest in the sector. This is particularly worthy of mention in a year that saw a substantial increase in nonperformance in the financial sector. There was intense sales activity in this segment in 2009. As regards products, mention should be made of the progress made in strategic fields such as variable income and life assurance policies. In equities, securities in deposit grew by 23.0% with respect to the previous year, reaching EUR 1,175 million at year end. Customer transactions totalled 823,688, representing an increase of 1.4% on the previous year. As regards life risk insurance, 32,025 policies were sold to customers in this segment, for a total of EUR 1,442 million insured capital, up 3.4% on the figure for 2008. Lastly, in terms of service quality, this customer segment recorded a cumulative NSI of 73.5 at the close of the year. Private Individuals, highlights 31/12/2008 31/12/2009 09/08 (%) Average funds (millions ) 5,242.74 4,746.36-9.47 Average loans and receivables (millions ) 22,964.05 23,045.16 0.35 Ordinary income (millions ) 344.72 300.72-12.77 Efficiency (%) 57.62 60.92 3.30 Overall Satisfaction (%) 75.13 73.47-1.66

Bankinter Annual Report 2009 80 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Personal Banking The new Personal Banking segment was created in 2009 to include a group of customers who have particular needs on account of their level of income and financial assets. These customers receive specialised, differentiated management within the sphere of Private Individuals. A team of personal managers has been put in place to look after and develop this customer group, as has a line of products specifically tailored to their financial needs. The newly launched Personal Financial Planning service is one such product. This innovative instrument provides forward-looking advice on financial strategy, helping customers to maintain a given level of income at the time of retirement or to channel their savings towards a medium- or long-term financial objective. amount of which is reviewed annually on the basis of trends in the markets and the customer's own needs. As in the rest of the Bank's businesses, the strategy in this segment continues to rely on a Multi-channel Banking, allowing customers to use the channel best suited to their needs and preferences in their transactions and relations with the Bank, and on the use of the CRM tool in the sales area with a view to matching financial offerings to each particular customer's needs. It is a made-to-measure financial programme, fitted to the risk profile of each individual customer, which optimises savings results and maximises tax benefits. Personal Financial Planning is more than just a financial advice service. Where a standard advisor would make a short-term investment recommendation, Financial Planning targets a tangible goal that the customer wishes to achieve at a given point in time, usually in the medium to long term. Thus, the proposal put to the customer not only includes an investment portfolio, but also a programme of regular contributions, the

Bankinter Annual Report 2009 81 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury NSI (points) 81.8 Foreign customers In 2009 the Foreign Customers business segment reached 27,191 active customers, and remained the subdivision of Private Individuals focused on non-spanish nationals, mainly from European countries, who purchase a second residence on the Spanish coast and seek to cover their financing and specialised services needs. At the close of 2009, average total assets stood at EUR 870 million, compared with EUR 882 million in 2008, which represents a minimal reduction of 1.4%. In balance sheet terms, the Foreign Customers Segment closed the year with average managed funds of EUR 253 million, 90% of which are normal customer deposits and the remaining 10% intermediation. The reduction in average managed funds was 13.4% compared with the closing figure for the year 2008. The figure for average lending stood at EUR 864 million at year end, which represents a year-on-year decrease of 1.3%. Mortgage lending declined in 2009, primarily as a result of sterling's decline and the crisis in the property market, with the ensuing growth in the number of houses for sale in coastal areas. Despite the difficulties in the economic environment, key performance indicators were maintained: return on equity (ROE) of 15%, and net return on assets of 0.7%. Customers in this profile group welcome Bankinter's multichannel strategy, as it enables them to carry out transactions and communicate with the Bank from their primary countries of residence. Lastly, our emphasis on quality of service has resulted in Foreign customers being among the most satisfied with the Bank's services, as proven by the fact that the accumulated NSI in this segment stood at 81.8 at year end. Foreign customers, highlights 31/12/2008 31/12/2009 09/08 (%) Average funds (millions ) 261.98 226.84-13.41 Average loans and receivables (millions ) 875.85 864.07-1.34 Ordinary income (millions ) 22.36 18.54-17.07 Efficiency (%) 47.64 53.66 12.64 Quality (points) 82.52 81.82-0.85

Bankinter Annual Report 2009 82 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury SME transactions 81% via remote channels Small and medium-sized enterprises The downturn affecting all areas of the economy in 2009 had a particular impact on SMEs, whose solvency and business levels in most cases declined sharply relative to previous years. Despite this climate, the number of new customers captured in Bankinter's SME segment was again high, as was the activation rate. for this customer segment continued to focus on comprehensive customer management, service quality, and multi-channel banking as the framework for bank-customer relations. In this regard, it is worth noting that 81% of all transactions were carried out through remote channels in 2009. Regarding quality of service, it should be mentioned that the gap with our competitors was widened, and now stands at 2.2 NSI points, an increase on the 2008 figure of 1.3. SME average funds The increase in average funds at December 2009 was 0.2%, while average lending diminished by 0.1%. During 2009, our unique and highly competitive value proposal +0.24% Key figures for Small and Medium Enterprises 31/12/2008 31/12/2009 09/08 (%) Average funds (millions ) 2,842 2,849 +0.24 Average loans and receivables (millions ) 7,201 7,196-0.07 Ordinary income (millions ) 222.91 204.22-8.38 Efficiency (%) 52.56 57.21 4.65 Overall satisfaction (points) 74.87 71.87-3.06

Bankinter Annual Report 2009 83 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Loans and receivables Corporate Banking +6.4% compared with 2008 Operating efficiency Corporate Banking 27.4% Corporate Banking The year 2009 was characterised by the general decline in economic activity and its consequent negative effects on companies profit and loss accounts, which led to a significant increase in the non-performing loan ratios and insolvency situations in the market. In this adverse scenario and following the necessary restructuring of our management centres, Corporate Banking closed the year with a growth of almost 0.5% measured in terms of Gross Income, thanks to the able management of interest rate differentials and particularly to the increase of more than 13% achieved in commissions, which brought about pre-tax profits of EUR 54.4 million while at the same time maintaining the delinquency rate - despite the challenging environment - at 2.3% of total lending. In balance sheet terms, average loans and receivables grew by 6.4% to EUR 5,987 million as at December. Total loans and receivables (including off-balance-sheet exposure) were in excess of EUR 8,609 million. On the other side of the balance sheet, average managed funds were maintained at EUR 4,337 million, a logical consequence of the weaker economic activity. The Bank's value proposal to our customers continues to be based on differentiation through ongoing improvement in service quality with customer satisfaction indicators that are far above those of our competitors. The cumulative NSI rose to 77.0 as at December, a year-on-year improvement of 1.2 points. Bankinter's Corporate Banking remains focused on offering innovative products and services through multi-channel distribution, placing particular emphasis on the website for businesses. This service, which enjoys one of the best reputations in the entire financial sector and has an extremely high use rate of close to 80%, provides customers with assured, quick, efficient solutions for their day-to-day banking needs. In this challenging scenario, Bankinter successfully maintained the key performance indicators of its Corporate Banking business at a very high level, with a gross ROA of 2.5%, and an outstanding operating efficiency rate - measured by the ratio of total costs over operating earnings - of 27.4%. In summary, Corporate Banking remained loyal to its principles of quality and innovation in 2009, with excellent results at the end of a difficult year, as shown by the good levels of profitability, efficiency and above all solidity and quality in its lending portfolio that have always characterised this business at Bankinter. Corporate Banking, Key Figures 31/12/2008 31/12/2009 09/08 (%) Average funds (millions ) 3,681.39 3,729.96 1.32 Average loans and receivables (millions ) 5,625.63 5,986.94 6.42 Ordinary income (millions ) 156.82 157.60 0.49 Efficiency (%) 26.63 27.40 0.77 NSI score 75.85 77.01 1.16

Bankinter Annual Report 2009 84 6. Business > Economic and financial conditions > Customer resources and loans and receivables > Customer segment > Capital Markets and Treasury Bankinter pursued an active, careful and efficient liquidity and capital policy, keeping access open to the European short- and long-term capital markets and the various instruments available. Capital Markets and Treasury Bankinter maintained an active presence in the fixed income markets as a government bond and bills market maker and joint leading issuer of Spanish Treasury securities; as well as in the corporate bond market, with an active distribution desk. Bankinter also continued to be very active as an issuer and distributor of warrants. Bankinter pursued an active, careful and efficient liquidity and capital policy, keeping access open to the European short- and long-term capital markets and the various instruments available. Bankinter's good image and solvency meant that the issues carried out were very well received. To obtain liquidity the Bank used short-term issue programmes both on the domestic market through commercial paper programmes, and on the international market, with the Euronotes programme. The average balances in the year were EUR 2,774 million and EUR 1,577 million, respectively. Issues carried out in 2009 (EUR millions) Type of issue Date of issue Amount Mortgage bond 17/02/2009 323.00 Debt backed by bank guarantee 24/02/2009 1,500.00 Debt backed by bank guarantee 15/06/2009 265.66 Debt backed by bank guarantee 15/06/2009 257.66 Subordinated debt 11/09/2009 250.00 Mortgage bond 13/11/2009 1,000.00 To complete the capital and liquidity requirements, the Bank issued EUR 2,023 million in guaranteed debt, EUR 1,323 million in listed mortgage bonds and EUR 250 million in subordinated debt.

Bankinter Annual Report 2009 85 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk 7 Risk Risk management Risk management is a fundamental principle that prevails throughout the Bank's divisions. All the procedures, systems and policies established in the Basel II capital framework for managing and measuring risk and equity are in place at Bankinter. Gema Cordero, Risk Model Unit Manager

Bankinter Annual Report 2009 86 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The key priorities are identifying, measuring, managing, monitoring and controlling all the risks involved in banking. Basic principles of the risks function Risk management is a fundamental principle that prevails throughout the Bank's divisions. The Board of Directors holds the highest responsibility and establishes the Bank's own risk profile, risk policy and internal control systems. The Framework Agreement on Risks sets the strategy in the area of risks on an annual basis. The Board of Directors, through the Executive Committee and the Audit and Regulatory Compliance Committee - to which both Audit and Risks assiduously report - oversees and supervises the policies, systems and internal control procedures in regard to all risks inherent in the Bank's activities, and the prevention of money laundering in accordance with legislation in force. The Risk and Finance Division, which is run on the principle of independence and segregation of functions, encompasses the entire Risk structure: Credit, Control, Recoveries and Global Management. The current environment has made it necessary to separate the functions of Risk Admission-Approval and Control, Monitoring and Recovery, with excellent results. Global Management, which is responsible for the Internal Risks Models, also has the function of integrating the return risk models in management, according to the Institution s proprietary risk profile. Identifying, measuring, managing, monitoring and controlling the risks involved in banking are a fundamental priority, within a framework of optimising the global management of all risks, most notably Credit risk, market risk, operational risk and reputational risk. We are one of the few nationwide banks that have achieved Bank of Spain approval for most of its internal rating models. Moreover, all the procedures, systems and policies established in the Basel II capital framework for managing and measuring risk and equity are in place at Bankinter. Risk-adjusted return is the management tool which, based on these models, allows a seamless combination of the Bank's solvency and the sustained generation of value. The main principles that govern Risk Management are as follows: Independence. Alignment with strategic objectives. Integrated risk management. Management based on the risk-profitability trade-off. Mass use of automated approval systems. Diversification of the risk by clients, sectors, counterparties and markets. Identification, assessment and control of product risk, particularly when new products are launched. Relevance of the quality of service factor in the risks function.

Bankinter Annual Report 2009 87 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The various risk units play an active role in the process of new product definition, determining risk parameters and collaborating in the strategic definition of customer profiles. Credit Risk Organisation and functions The Board of Directors sets the strategy for each of the risks within the Risk Framework Agreement, a document that is drawn up on an annual basis. It decides on the basic guidelines behind the Institution s risk appetite, setting the course as regards the granting of risks. It establishes the next level of powers and decides on how they should be delegated. In addition to its executive and sanctioning role in the field of risk, it receives monthly reports on the evolution of the key risk indicators. The Board of Directors delegates the task of developing the Bank's risk policy to the Risk Committee, a body chaired by the Managing Director. Its delegated powers include approving operations and defining the powers of the committees at the next levels below. It also receives reports on the evolution of customers, sectors and key matters bearing on credit quality. The next level of delegated powers in this area is the Credit Risk Committee, management of which is in the Risk and Finance Division. The top manager of the latter is in turn a member of the Bank's Steering Committee, and reports directly to the Managing Director. The Risks Directorate is responsible for drawing up the various risks policies and informing on how they are implemented. Its targets include the development of automatic authorisation systems and all risk processes, while always seeking maximum efficiency and quality. The Credit Risk Department performs its functions through the units that form its structure: Risk approval and policies are the work area of: - The Private Individual Risks Unit - The SME and Developer Risks Unit - The Corporate Risks Unit The Process Management and Analysis Unit is in charge of defining and improving the various risk processes. The main objective of the Risk Systems Unit consists in defining, implementing and improving all risk systems. In addition to their own functions, the different risk units also take an active part in the process of defining new products, determining risk parameters and collaborating in the strategy for defining the customer profile within the marketing process, always establishing the most efficient approval process. The role of the Validation Unit is to validate advanced risk models and their results, an essential requirement for the calculating capital requirements, based on internal estimates. This is an independent Unit within the Risks Directorate; it also performs a critical examination of the parameters used in building the models and tests their use in management. The opinions and weak points that are detected are submitted to the Validation Committee for analysis and approval.

Bankinter Annual Report 2009 88 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Structure and procedures The organisational structure of the risk function at the institution combines a hierarchical structure with the delegation of powers. This combination is perfectly delimited by a series of rules that establish competencies, specify functions and create spheres of responsibility, thus enabling the same strategic line to be maintained. Decision-taking on the Risks Committees is on a collegiate basis, representing the various areas involved. The risk admission process is supported by an electronic proposal that enables integration and unification of all of the bank s networks and channels. The use of statistical models enables automatic authorisation of retail risks, in compliance with the objective of efficiency and the use of technology in authorisation. The information from the systems is contrasted to ensure its accuracy. The RAROC (system for the evaluation of proposals that evaluates Profitability to be obtained as adjusted to the Risk taken on) is already part of the systems and it includes a necessary risk premium for authorisation. Risks Map The new Bank of Spain regulations on capital management and solvency of credit institutions require implementing specific procedures for controlling and managing risk factors that could lead to the materialisation of financial loss. In 2009 we developed a method of detecting, analysing and assessing the potential impact (severity) of the practices and aspects of the Bank's business that could involve risk, as well as processes for monitoring and controlling such practices and measures to mitigate or, if possible, eliminate the residual risk. The management tool implemented in the course of 2009 ensures that recommendations are issued and their implementation is monitored.

Bankinter Annual Report 2009 89 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Corporate entities Concentration The Bank's concentration policy is subject to more intense monitoring as a result of the recent financial crisis and the requirements of the new Basel II accord. The aspects that are taken into account are diversification according to sectors, geographical location, products and guarantees, as well as concentration in clients. 50% Geographical Distribution 35% 30% 25% 25% 30% Mediumsized, 35% Small, 22% Very small, 5% Large, 38% 20% 19% 19% 18% 15% 14% 13% 13% 12% 12% 12% 12% 10% 5% 0 Catalonia Madrid Andalusia Eastern Spain GDP l Financial Sector l Bankinter 8% 8% 7% 6% 6% 5% 5% 5% 5% 5% 4% 4% 4% 4% 4% 3% 3% 3% 3% 3% 2% Northern Spain Castile and Leon North- Western Spain Canary Islands CLME NARS Balearic Islands

Bankinter Annual Report 2009 90 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk NPL ratio 2.5% Below the sector average, 5% Evolution All financial institutions felt the effects of the current economic situation in 2009. The economic recession has led to a clear deterioration in the quality of credit, with an increase in nonperforming loan rates. Against this backdrop, differences in portfolio quality led to divergences in institutions' performances. The cost of non-performing loans has increased significantly, as a consequence of the increase in allowances, with a major impact on results. Bankinter once again stood out thanks to its strong balance sheet. The risk culture that informs the entire organisational structure is the foundation on which the Bank's lending portfolio has been built, and the reason for the excellent risk ratios. As proof of this, the delinquency ratio at year end was 2.5%, far below the sector average (5.1% at December 2009), and Risk by segments 35,000 30,000 25,000 20,000 15,000 10,000 5,000 the lowest among comparable institutions. Undoubtedly, this constitutes a clear competitive advantage in the current economic environment. Consistently rigorous risk management is an opportunity for intelligent growth in today's scenario. Hence, growth and the search for new businesses and customers are the Bank's main objective. Total average loans and receivables across all Customer segment reached EUR 41,844 million for the year ended 31 December 2009, up 1.6% on the previous year. Particularly noteworthy were the increases in average lending in Private Banking (+8.8%) and Corporate Banking (+6.4%), which bear witness to the Bank's strategic focus on these Customer segment. A further aspect that deserves highlighting is the strong collateralisation of the entire lending portfolio, with a high degree of diversification in the types of guarantees held, which also explains the Bank's above-average performance ratios. The percentage of loans with in rem guarantees remains very high, reaching 69% at year end. Risk by type of guarantee Pledge, 2% 0 Personal, 29% Private individuals Corporate Banking SMEs Obsidiana Mortgage, 69% Dec 08 l Dec 09

Bankinter Annual Report 2009 91 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Diversification of risk 74% below EUR 600,000 One of the largest shares of secured lending is taken up by mortgage loans extended for the purchase of first residences. In a scenario dominated by falling home prices, the Bank's LTV (Loan to Value, an indicator that measures the ratio between the value of the property and the loan) is a differentiating element, and a clear reflection of the quality of the collateral. In SMEs, the segment most severely hit by the recession, the rate of mortgagesecured lending has improved, reaching 53% of the portfolio. It is also worth mentioning that over 35% of mortgaged property corresponds to houses with an LTV of 57%. Another feature that is characteristic of the portfolio is the high level of risk diversification, reaching 74% with operations worth less than 600,000 euros. Even though exposure to the property development sector - the area suffering the most serious difficulties - is very limited (less than 3%), those developments that are under way are subject to exhaustive monitoring and control. One of the reasons for the low exposure is the lack of participation in the main corporate operations in the sector. The breakdown by sectors is as follows: Housing, 54% Other, 7% Other productive activities, 29% Construction, 6% Lending to Property developers, 3% Consumer, 1% The basic reason for the Bank's clear competitive advantage in the area of risk is its team of highly qualified professionals with a deep rooted risk culture, supported by advanced information systems. Bankinter's delinquency rate was 2.5% at the close of 2009, a significant increase on the previous year's figure, but which nevertheless continues to set the standard in the banking industry. Credit risk matrix (%) Analysis of credit risk (Thousands of euros) (in thousands) 150 150-600 600 3,000 3,000 6,000 >6,000 Total 3 Months 2 2 2 1 2 9 3-12 Months 3 3 3 1 3 13 12-36 Months 3 1 1 0 1 5 > 36 Months 27 33 8 2 3 73 TOTAL 36 38 14 4 9 100 31/12/2008 31/12/2009 Diff. Amount Computable ex-securitisation risk 45,332,729 44,400,954-931,775-2,06 Doubtful risk 607,438 1,093,102 485,665 79,95 Total allowances 730,424 813,626 83,203 11,39 Generic 573,234 397,802-175,433-30,60 Specific 157,190 415,825 258,634 164,54 Ex-securitisation non-performing loans ratio (%) 1.34 2.46 1.12 83,73 Non-performing loans coverage ratio (%) 120.25 74.43-45.81-38,10 %

Bankinter Annual Report 2009 92 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Private Individuals Credit quality in the Bank's private individuals portfolio, which encompasses Personal Finance, Private Banking, Retail Banking and Foreign Customers, maintains an outstanding level of performance, with an NPL ratio of 1.3%. The ratio rises to 1.6% if consumer loans are included. The most relevant product in the Private Individuals segment is the mortgage loan. The relative size of the Bank's mortgage loan portfolio against total lending remains high, at 54%. The number of new mortgage loans saw a considerable fall with respect to the figures for 2008. The profile of new production is as follows: Some 80% of home mortgages were processed though expert approval systems, primarily through the SINPAR automated authorisation system for private individuals. In 2009, 36% of new loans were approved automatically. The admission policy for this product was adjusted in 2003, in anticipation of the change in the economic cycle. Since then, the Bank has selected customers with the highest incomes, with a maximum LTV of 80%, once again setting itself apart from other institutions in the sector. The statistical model, which combines an authorisation tree with a regression, determines the probability of default on operations. In 2008 RAROC (risk-adjusted return on capital) was incorporated into the model as a determining variable for loan approval. It is also worth mentioning that the average burden (measured as the proportion of income that the client assigns to paying the mortgage loan instalments) fell considerably for mortgage loans taken out in 2009 compared with 2008, specifically from 32% to 28%. This is primarily due to the changes in the interest rates and to the decrease in the average amount of mortgage loans. Home mortgage production Delinquency: balance (in Millions of Euross) and ratio Accum. 08 Accum. 09 Average loan (transaction) (EUR) 178,895 158,998 % of household income (net) 32 28 Loan / Appraised value (%) 60 63 No of transactions 17,041 9,689 400 300 200 100 0.8% 224 1.3% 362 0 2008 2009 Private individuals l Ratio %

Bankinter Annual Report 2009 93 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The average LTV for the mortgage lending portfolio stands at 57%, with only 5% above 80%. Finally, as a consequence of all aspects mentioned in this section, the credit quality of our mortage portfolio remains very high. Proof of this is the Bank's delinquency rate (1.1%), the best in the entire financial system, which at September 2009 had a ratio of 3% for this type of lending. (Data provided by the Spanish Mortgage Association) Evolution of the residential mortgage loan delinquency ratio 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 Dec. 07 Mar. 08 Jun. 08 Sept. 08 Dec. 08 Mar. 09 Jun. 09 Sept. 09 System l bankinter LTV brackets of the Residential Mortgage Loan Portfolio Total Bank % Transactions below 30% 32.19 LTV 30-40 % 12.89 LTV 40-50 % 13.86 LTV 50-60 % 14.13 LTV 60-70 % 12.97 LTV 70-80 % 9.03 above 80% 4.93 Total LTV brackets 100 Profile of the residential mortgage portfolio (private individuals only) December 2008 December 2009 Average loan 112,000 110,000 Primary residence (%) 91 91 % of household income (net) 35 29 Loan/Appraised value (%) 59 57 Non-performing loans ratio (%) 0.61 1.12

Bankinter Annual Report 2009 94 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Corporate Banking Total risk outstandings in this segment amounted to EUR 8,609 million, representing an increase of 5% compared with the previous year. Despite the growth in credit risk, the balance of non-performing loans was still contained, with an NPL ratio at year end of 2.3%. The principles that governed the granting of risks in Corporate Banking have been adapted during the course of the year to the existing economic situation, always with the main goal of preserving risk quality. Among these, the following should be highlighted: - Conservative customer portfolio management. - Optimisation of the risk-return trade-off. - Lending for specific purposes, with the objective of establishing long-term relationships. - The length of time a business has been a customer and their connection with the Bank, their cash-flow generation and asset structure, the viability of the business and the profitability are determining variables in decision-taking. Credit risk matrix by terms and amounts (%) - For the approval of transactions systematic use was made of rating models that rate businesses according to their cashflow generation and solvency, combined with quantitative and qualitative expert analysis. Regarding structured finance, a total of 33 transactions were completed in 2009, for EUR 303 million. The weighted average differential was 2.3%. The matrix by terms and amounts shows that 64% was financing at terms of less than 1 year and that the risk at terms of over 3 years - which rose from 25% to 28% - was highly diversified by amount. 34% have unitary risks in excess of EUR 6 million, but 19% are at less than one year. Long experience with ratings in this segment makes them a basic element in the approval of transactions. This is included in the discussion for authorising operations and is used to preclassify clients in certain products, thus facilitating commercial activity. Delinquency: balance (in Millions of Euross) and ratio 150 150-600 600 3.000 3.000 6.000 >6000 Total 3 Months 2 5 8 4 8 28 3-12 Months 2 6 11 4 11 36 12-36 Months 2 2 2 1 3 9 > 36 Months 2 3 9 3 11 28 200 150 100 50 1.1% 87 2.3% 198 0 Corporate l Ratio % 2008 2009

Bankinter Annual Report 2009 95 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Small and medium-sized enterprises We maintain a broad customer base with more than 80,000 companies and self-employed persons, with whom we have a credit risk figure of more than EUR 7,586 million. The Bank is committed to making funds available to Spanish small and medium-sized companies, as shown by the fact that we have implemented virtually all the financing lines of the ICO ('Instituto de Crédito Oficial', the Spanish state financial agency) made available for companies in this category. Moreover, the agreements with the various Reciprocal Guarantee Companies have been renewed and extended. The Bank has automated decision making models for risk management purposes and teams of extensively experienced risk analysts. In both cases they rely primarily on internal ratings of customers who have shown evidence of solidity and predictive capacity. Diversification by sector, which makes management by portfolio possible with greater dilution of the risk among portfolios. The existence of an Automatic Approval System with high adaptability and flexibility makes it possible to process and approve a large number of transactions, modulating the relative weight of automatic and manual approvals according to the changes in the economic cycle. As a result of the economic situation, risk policy has been stricter in terms of the guarantees and the involvement demanded of company owners. Delinquency in the SME business grew in 2009, reaching a ratio of 5.8%, compared with 2.8% in the previous financial year. Smaller enterprises have been more vulnerable to the financial crisis, which has translated into a greater delinquency ratio. Distribution by sector Delinquency: balance (in Millions of Euross) and ratio Communications, 3% Transport, 4% Primary sector, 2% Hotels and restaurants, 3% Construction, 9% Freelance and self-employed, 11% Development, 3% Commerce and retail, 21% Miscellaneous services, 17% 500 400 300 200 2.8% 219 5.8% 439 Manufacturing industry, 14% Real estate activities, 13% 100 SMEs l Ratio % 2008 2009

Bankinter Annual Report 2009 96 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The rate of recoveries achieved against cases processed in the SME segment improved noticeably in the last quarter of 2009, following a decrease in the number of cases and an increase in amounts of recoveries. It should be highlighted that 40% of the outstanding balance for SMEs has mortgage guarantees with an LTV ratio of 46%. It is also worth mentioning that balances over 30 days in arrears fell in the second half of 2009, which signals slower increases in the number of new delinquencies. Change in delinquency by division: SMEs 100% 80% 60% 40% 20% 0% Dec. 12 Mar. 13 Jun. 13 Sept. 13 Dec. 13

Bankinter Annual Report 2009 97 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Bankinter has had automatic systems in place for years for controlling and monitoring credit risk on a permanent basis. Control, Monitoring, and Recoveries The Control, Monitoring and Recovery Department is part of Bankinter's Risk and Finance Division. Its basic function is to direct and manage the processes for followin up on and controlling credit investment with a view to anticipating possible decline in customer risk quality. It also defines and establishes the procedures for the recovery of positions in default. The Control and Recovery Committee meets on a half-monthly basis. The Committee hears reports on the evolution of default by segments and territorial organisations, and monitors recoveries, focusing particularly on products and sectors. Bankinter has had automatic systems in place for years for controlling and monitoring credit risk on a permanent basis. People in Control and Recovery 120 100 80 60 40 20 32 53 75 95 109 There are also processes for controlling the quality of data entered in the automatic authorisation systems and controlling the formalisation of credit operations. The year 2009 was characterised by a major rise in the nonperforming loan ratio as a consequence of the economic recession. Bankinter continued to strengthen and improve the professional skills of the personnel devoted to Control and Recovery, at both central and regional levels. Anticipation and default management are especially relevant at this time, which explains the fact that a portion of the Bank's best resources are being focused on this area. In recent years special efforts have been made to train the branch network teams in risks, control and monitoring, and these were intensified in 2009 due to the particular importance at the present time of early management of risk. During the year, 500 branch managers received training on the control and monitoring of customers. The SMART project (Control and Recovery Process), which was launched in 2008, was implemented in day-to-day management, allowing, among other aspects, information to be accessible at all levels through: 0 Dec. 07 Jun. 08 Dec. 08 Jun. 09 Dec. 09

Bankinter Annual Report 2009 98 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk 1. The implementation of Risk CRM (Customer Relationship Management) at the level of centres/branches and regional offices, giving priority to alerts by using risk schedules. 2. New risk monitoring reports (by delinquency status, by prognosis, by type of personal manager, etc.). Improvement of the reports on the effectiveness and efficiency of anticipation in each of the alerts. 3. Improved computerised recovery system, including new variables that allow recovery actions to be performed by sector, customer rating and severity. 4. Re-engineering of the entire pre-litigation process, from communication to closure and demand for payment, with a view to maximising efficiency. 5. Integration of the information from all recovery agents, internal and external, enabling daily monitoring of the entire process. 6. Development of behaviour models in accordance with the terms of Basel II and integration thereof in the customer statistical alert system. In addition to the function of the control and monitoring carried out by the Control Unit, it also develops, evaluates and carries out the monitoring of the Control tools and applications used by the Network. There are control managers at each territorial organisation who perform lending monitoring functions at local level. At each branch office and centre the control and monitoring function is performed by the relevant loans committee. The Bank has a variety of applications for monitoring loans and receivables predictively and reliably for each customer and office/ branch. The systems are applied to all channels originating at the Bank. These tools allow us to establish special supervision of certain clients in difficulties, with the aim of reducing or cancelling the credit risk in a short period of time: Statistical Client Alert. The Statistical Client Alert System detects, on the basis of statistical analysis of the most predictive variables, customers with a higher probability of default. Risk Quality. This became a key instrument for monitoring risk in 2009. Subjective classification by managers enabled us to segment clients: those that require special surveillance and those that are classified as a risk to be eliminated. Subjective assessment, in combination with objective assessment procedures based on a number of variables (rating, risk development, incidents, etc.), has allowed us to anticipate instances of non-performance. Branch-Office Alerts The Bank has a statistical instrument that supplements risk audits in branch-office level risk management. A total of 228 centres were reviewed in 2009, where training activities on Control were delivered. Anticipation of Risk. This is a measurement tool which allows us to determine exactly whether or not risks are being properly anticipated. It measures the efficiency of the two systems described above (statistical customer alert and risk quality).

Bankinter Annual Report 2009 99 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Default Recovery and Management The Recovery Unit monitors non-performing operations and is responsible for recovering positions in default from the largest customers, from the time of detection of the problem until resolution. Speedy decisions appropriate to customer profiles proved decisive in the recovery process in 2009. The search for specific solutions in many cases allowed continuance for the customer without negative effects for the Bank. Collaboration with third-party recovery agencies in cases involving smaller amounts was particularly important, as it freed up resources in the sales network and regional organisations to perform tasks of greater added value. Net new delinquency cases by quarter The process defined is global and therefore covers both the litigation stage - conducted by the Legal Department - and the assets management stage conducted by the Real Estate Department in cases of foreclosure, both at the central and at the regional level. The rate of recoveries achieved against cases processed far exceeded the targets set for 2009, and is one of the highest among comparable institutions. The Bank's strategy in recent years, focused on a single business model, with a strong culture of managing the credit risk at all levels of the Bank, together with the high level of qualification within the teams, is clearly reflected in the current delinquency rate. The Bank's delinquency rate rose during financial year 2009 as a result of the rapid and severe deterioration of the economic situation, reaching 2.5%, compared with 1.3% for the previous year. Evolution of the non-performing loan ratio System and Bankinter (%) 472 482 514 515 560 10% 80% 8% 58% -272-317 -392-427 -449 4Q08 1Q09 2Q09 3Q09 4Q09 6% 4% 2% 0% 5.07 2.46 86 88 90 92 94 96 98 00 02 04 06 07 08 09 System l bankinter

Bankinter Annual Report 2009 100 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk This increase in default was most severely felt in the SME segment. Bankinter has built a conservative mortgage portfolio, with a clear preference for clients with a higher profile and selective growth, which now gives it a clear competitive advantage with regard to other institutions in the sector. The flows in non-performing loans in 2009 were as follows, with a total balance of EUR 1,093 million compared with EUR 607 million in 2008, which means there was an increase of EUR 485 million in non-performing loans. These figures include EUR 69 million in debts classified as doubtful for reasons other than delinquency, certain customers showing unequivocal signs of becoming doubtful in the short to medium term despite not having gone into arrears. Refinancing operations carried out in 2009 reached 1.1% of the credit risk, where a refinancing operation is defined as any change in the terms and conditions of a given loan. The majority of refinancing operations have additional guarantees. Annual variation in delinquency (in millions) ) Annual variation in defaults (in Thousands of euros) 2.46% December 2008 December 2009 Opening balance 155,269 607,438 Net entries 477,155 539,269 1.34% 1,093 485 Written off 24,986 53,606 Closing balance 607,438 1,093,102 0.36% 157 607 450 2007 2008 2009 Balance l Increase l Ratio

Bankinter Annual Report 2009 101 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Due to Bankinter's limited presence in the property development sector, purchases of real estate assets are clearly below the sector average Purchase of real estate assets The purchase of real estate assets allows more efficient recovery on some occasions. This type of operation provides immediate availability of the asset concerned, and involves lower costs and shorter terms than court action, while contributing to improving the customer's situation to the extent that his leverage is reduced. The Bank's asset purchases rose to EUR 264 million, and the current real asset portfolio stands at EUR 326 million. The appraised price of the asset portfolio stands at EUR 418 million, with 78% LTV. If the asset has not been sold within one year, the Bank adds a further 10% (at least) of the value of the repossessed asset based on its updated appraised value. Moreover, the Bank s real estate management team has been significantly reinforced. These people actively collaborate in the purchase process and are in charge of efficient handling of same so as to maximise sale value. Asset sales amounted to EUR 31 million in 2009. Solvency levels and asset coverage allow us to face the current situation in optimum conditions. Due to the scarce presence of Bankinter in the development sector, real estate asset purchases are clearly lower than the average for the sector. Regarding the Bank's real estate portfolio, it is worth noting that it does not include any properties currently in the development stage and that the proportion of rural land is very small; in the current situation the market for both these products is limited. Evolution of the coverage ratio (in %) and allowances Figures in millions of euros 120% Awarded assets are entered in the accounts according to strict criteria for allowances, meaning that it is registered at the lower of the following values: 730 814 74% - Book value of the loans (net of allowances, which are at least 10%). - Appraised value of the property minus selling expenses, which are estimated at 10%. If the latter is lower than the former, it is considered a loss due to the difference. Dec. 08 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. 09 Allowances l Coverage

Bankinter Annual Report 2009 102 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Reputational risk Reputational Risk is the risk that is inherent to taking steps with clients that may lead to negative publicity regarding practices and business relations, which may cause a loss of trust in the institution s moral integrity. This activity aims to detect, analyse and appraise the potential impact (severity) of all such practices and aspects of the Bank's business as might involve reputational risk, and to establish processes to monitor and control such practices and implement measures to mitigate or, if possible, eliminate the risk. Promoting the implementation of reputational risk policies. Following up the actions taken to mitigate the most significant risks. Deciding on proposals submitted to the Committee in connection with events involving a potential reputational risk. Validating compliance with procedures and protocols for identifying and assessing reputational risks. This function is particularly relevant where launches of new products or business lines are concerned. The Operational and Reputational Risks and New Products Committee meets on a regular basis, with the following functions as regards reputational risks:

Bankinter Annual Report 2009 103 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk During this financial year, Bankinter's risk models have demonstrated outstanding solidity, in so far as they have maintained and in some cases even improved their strong predictive and discriminating capabilities. Internal risk scoring models Bankinter continued to make progress in 2009 with the development and validation of internal models begun in previous years, and maintained regulatory use of IRB models in the internal categories of home mortgages for private individuals, unsecured loans, small companies, medium size companies and developer project finance (in this case, according to a model of supervisory categories). The Bank is also continuing its successive implementation plan for the validation by the supervisor of the remaining models. In a particularly difficult year as regards anticipating changes and the deterioration in the risk quality of the system, Bankinter's risk models demonstrated outstanding solidity, maintaining and in some cases even improving their strong predictive and discriminating capabilities. In parallel, increasing use continued to be made of internal models for rating and authorising transactions, and progress was made with the development of systems and procedures for managing risk-adjusted prices, application of risk-adjusted return measures to management, and monitoring of the overall risk profile of the lending portfolio. The models developed cover 91% of total customer credit risk exposure. The following diagram shows the breakdown of customer credit risk exposures, classified by risk category and internal rating. Each risk category comprises the customer positions that, from a risk point of view, are together sufficiently uniform - and sufficiently differentiated from other categories - to permit their statistical modelling. Distribution of credit risk by internal category Other corporate entities, 2.7% Project finance, 2.2% Very large companies, 15.1% Large companies, 12.0% Medium size companies, 7.9% Small companies 1.7% Private Individual remaining transactions, 13.0% Home Mortgages Pr. Indiv., 44.9%

Bankinter Annual Report 2009 104 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The internal rating models provide, for each category, a score or internal rating of the risk assumed by the Bank vis-à-vis each customer or transaction. Each of these ratings is associated with a certain probability of default (past due by more than 90 days) and, accordingly, the higher the rating, the lower the probability of default. In each risk category, whether relating to private individuals or corporate entities, the range of probability of default associated with the rating of each one is different. In order to be able to compare the various credit risk categories, an internal master scale has been developed that gives a value in the scale to each default probability, where 0 is the highest probability of default and 100 the lowest. Location of risk categories on master scale Master scale 110 100 90 80 70 60 50 40 30 20 10 0 Mortgages 2nd mortg. Credits & loans PI PI Overd. PI Other PI Small comp. Med. comp. Risk categories Large comp. Very large comp. The breakdown of credit risk with private individuals and corporate entities according to the master scale is as follows: Distribution of risk per the master scale. Private individuals Risk EUR mill. 6,000 5,000 4,000 3,000 2,000 1,000 0 Distribution of risk per the master scale. Corporate entities Risk EUR mill. 6,000 5,000 4,000 3,000 2,000 1,000 95-100 90-95 85-90 80-85 75-80 70-75 65-70 60-65 55-60 50-55 45-50 40-45 35-40 30-35 25-30 20-25 15-20 10-15 5-10 0-5 Master scale Mortgages l 2nd Mortgages l Credits & loans PI l Other PI For example, the 'home mortgage loans' and 'very large companies' categories are the ones with the lowest probabilities of default and, accordingly, they are at the higher end of the scale. 0 95-100 90-95 85-90 80-85 75-80 70-75 65-70 60-65 55-60 50-55 45-50 40-45 35-40 30-35 25-30 Master scale Small C. l Medium-sized C. l Large C. l Very large C. 20-25 15-20 10-15 5-10 0-5

Bankinter Annual Report 2009 105 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Bankinter has historical default databases that permit calculation, for each one of the categories, of the probability of default, the severity (the average loss given default), and the expected exposure at the time of default. Probability of default, severity and exposure are the three factors required to calculate the expected loss. The expected loss is a key factor in estimating the risk premium that should be passed on in the transaction price as an additional cost of the lending activity. Bankinter's estimates of probability of default, severity and exposure, and therefore of expected loss, bear witness to the excellent quality of its portfolios. For example, in the mortgage portfolio, 72.2% of the exposure had a rating of 5 or higher, and the expected loss on the portfolio as a whole in situations of recession was 0.5% of the risk exposure. Distribution of the portfolio of Unsecured Credits and Loans to private individuals by rating 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1 2 3 4 5 6 7 8 9 Risk (%) l Expected loss (%) Rating 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Distribution of home mortgages portfolio by rating Distribution of the portfolio of other transactions with Private Individuals by rating 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1 2 3 4 5 6 7 8 9 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1 2 3 4 5 6 7 8 9 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Risk (%) l Expected loss (%) Rating Risk (%) l Expected loss (%) Rating

Bankinter Annual Report 2009 106 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Distribution of the Small Companies portfolio by rating Distribution of the Large Companies portfolio by rating 25% 20% 15% 10% 5% 0% 1 2 3 4 5 6 7 8 9 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 30% 25% 20% 15% 10% 5% 0% 1 2 3 4 5 6 7 8 9 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Rating Rating Risk (%) l Expected loss (%) Risk (%) l Expected loss (%) Distribution of the Medium Size Companies portfolio by rating Distribution of the Very Large Companies portfolio by rating 30% 25% 20% 15% 10% 5% 0% 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 30% 25% 20% 15% 10% 5% 0% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 1 2 3 4 5 6 7 8 9 1 3 5 6 7 8 9 Rating Rating Risk (%) l Expected loss (%) Risk (%) l Expected loss (%)

Bankinter Annual Report 2009 107 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The low levels of expected losses are due both to the quality of the transaction acceptance systems and to the excellent recovery systems and methods for transactions that go into arrears. Despite the deterioration suffered by the system in 2009, as the following graphs show, 61% of the Private Individuals transactions were recovered within 365 days of their initial default. For the same period, the percentage of transactions with Corporate Entities recovered was 51%. Private individuals. Non-performing balances recovered Corporate entities. Non-performing balances recovered 100 90 80 70 60 50 40 30 20 10 0 66.06 100 90 80 70 60 52.79 50 51.11 40 30 20 10 0 60.81 % % 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Quarter Quarter % recovered % recovered

Bankinter Annual Report 2009 108 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Developers Bankinter has traditionally applied criteria of maximum prudence when accepting the risk of property development transactions, as illustrated by the figures in previous sections of this Report and by our reduced exposure to this risk category. The internal rating system for housing development financing transactions is based on the completion of an assessment questionnaire by expert analysts. In 2009, a major review was performed of the credit ratings of transactions in this category to continue adjusting them as necessary to the sharp deterioration of the economy. The statistical processing of these assessments classifies transactions in this portfolio into four categories, with 'weak' being the worst and 'strong' the most favourable. Breakdown of the property development portfolio (% of transactions) % of transactions 40 35 30 25 20 15 10 5 0 1 Weak 2 Acceptable 3 Good 4 Solid Rating Economic capital Economic capital is a quantitative risk measurement designed to measure all the quantifiable risks of an institution in a consistent and comprehensive manner. It can be defined as "the potential unexpected loss of an institution over a time horizon of one year, with a statistical level of confidence (determined on the basis of the rating desired by the Bank) taking into account all the main classes of risks". Economic capital methodologies provide an institution with uniform risk measurements for enhanced decision-taking regarding business strategy, management of risk concentrations and diversification (mobilisation and hedging of transactions and portfolios), capital planning and management of risk-adjusted prices and returns. They also make it possible for the Bank to use a common metric to estimate the dimension of the most significant risks, their evolution and the assessment of current and foreseeable capital requirements based on the Bank's nature and business plans, and also make it possible to perform stress tests in adverse potential scenarios. All this is a central component of the capital self-assessment process laid down in Pillar II of the Basel II Framework and transposed in Bank of Spain Circular 3/2008, which all advanced institutions must perform rigorously.

Bankinter Annual Report 2009 109 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The composition of the economic capital by type of risk in December 2009 was as follows: Contribution to economic capital by type of risk (%) Market, 1% ALM, 2% Trade, 5% Operational, 7% Economic capital methodologies also favour the rational allocation of the scarcest of all financial resources, i.e. capital, to business units according to their share in the Bank's aggregate credit risk. The breakdown of customer risk exposure, expected loss and economic capital by business segment is as follows: Breakdown of exposure, expected loss and economic capital by segment (%) Credit, 85% In 2009 Bankinter continued to make progress in the practical application of the economic capital measurements of its business units and customers. These methodologies require an ongoing effort in learning and enhancement in order to constantly evaluate the suitability of their application to the different aspects of management, maintaining in each case the proper conservative and precautionary approach. 100 90 80 70 60 50 40 30 20 10 0 2.10% 2.43% 1.94% 4.14% 3.48% 4.42% 6.70% 4.34% 4.50% 19.02% 15.60% 22.73% 51.87% 41.27% 32.19% 16.17% 32.88% 34.22% Exposure Expected loss Economic capital SMEs l Private individuals l Corporate l Private l Personal loans l Foreign

Bankinter Annual Report 2009 110 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Risk-adjusted return The new risk quantification methodologies make it possible to introduce standardised credit risk measurements into management, particularly expected loss and economic capital. In turn, these measurements make it possible to take credit risk premiums into account in the different systems for calculating the profitability and assessing the economic performance of the business units. Through its systems and its culture, Bankinter is therefore in a privileged position to continue to incorporate risk quantification, in a natural way, into the setting of prices and the management of customers and businesses. In 2009 we continued to take practical application decisions that permit progress in achieving ever more rigorous management of the risk, the solvency and the profitability of the business, which are all especially important at the most complicated times of the economic cycle. Bankinter was the first bank in the Spanish market to develop, in 1981, an analytical accounting system that enabled it to ascertain the profitability of its various products, Customer segment and business units. Since then the Bank has continued to enhance these systems and their application to the business, within the framework of a culture of decentralised and flexible prices and management that constitutes one of its main competitive advantages. Apart from that, since 1990, the Bank has been developing and using different credit transaction scoring and mechanised approval systems, which are now further strengthened with this additional information on quantitative credit risk measurements.

Bankinter Annual Report 2009 111 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The purpose of our policy is to neutralise the impact of changes in interest rates, in the main market variables and in the balance sheet structure itself, on the Bank's income statement. Market risk This heading includes the Bank's structural risks and risks arising from possible changes in the market price of negotiable financial instruments. Structural and market risk management policies The purpose of Bankinter's policy on the management and control of structural risks and market risk is to neutralise the impact on the Bank's income statement of changes in interest rates, in the main market variables and in the balance sheet structure itself, by adopting the most appropriate investment or hedging strategies. The Board of Directors delegates continuous monitoring of decisions regarding structural balance sheet risks (interest rate risk and liquidity risk), stock market risk and exchange rate risk of the Bank's corporate positions, as well as the establishment of financing policies, to the Assets and Liabilities Committee (ALCO). On an annual basis it reviews, approves and delegates to the ALCO the limits applicable for managing the abovementioned risks. The Treasury and Capital Markets area implements the decisions taken by the ALCO with regard to the Bank's corporate positions. Also on an annual basis the Board of Directors sets the operating limits applicable to the Treasury and Capital Markets division for dealing on the Bank's own account in the financial markets, in order to take advantage of any business opportunities that may arise. Market Risks, which forms part of the Risk Management Division within the Risk and Finance area, has the independent function of measuring, monitoring and controlling the Bank's structural and market risks. Structural risks The following paragraphs describe the models generally applied by the Bank for managing, measuring and controlling structural interest rate and liquidity risks: Structural interest rate risk Structural interest rate risk is defined as: the Bank's exposure to changes in market interest rates insofar as it arises from timing mismatches of maturities and repricing dates of balance sheet items as a whole. Bankinter performs active management of this risk in order to protect the interest margin and to preserve the economic value of the Bank against interest rate fluctuations. To manage, measure and control interest rate risk, the Bank uses repricing gap analysis, which provides it with a simplified view of the balance sheet structure and enables it to estimate the impact of possible changes in interest rates. The measures adopted for managing structural interest rate risk are implemented in accordance with the structure of limits approved by the Board of Directors, these limits being defined in terms of the maximum mismatch that can be maintained between the total amount of assets and liabilities for each tranche in the interest rate Risks Map, the control and monitoring of which is carried out by Market Risk.

Bankinter Annual Report 2009 112 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The situation of the interest rate Risks Map of the Bankinter Group as at the end of 2009 was as follows: 20,000 15,000 10,000 5,000 0-5,000-10,000-15,000 Apart from this, the Bank carries out dynamic simulation analyses which enable it to estimate the sensitivity of its financial margin, at both short and medium term, to various scenarios involving changes in interest rates and in the interest rate curve. Similarly, but with a longer term view, the Bank analyses the effects that interest rate changes would have on its economic value. Below are the results of these analyses at the end of 2009: Effect on the interest margin of a parallel shift of +/- 100 basis points in the euro interest rate curve over a time horizon of 12 months: Up to 1 month 1-3 months 3-12 months 1-2 years 2-3 years 3-4 years 4-5 years +5 years 10.00 Millions of Euros (*) Interest mismatch figures include Bankinter, Obsidiana and Línea Directa Aseguradora 5.00 0-5.00-10.00 Dec. 09 Jan. 10 Feb. 10 Mar. 10 Apr. 10 May 10 Jun. 10 Jul. 10 Increase 100 basis points l Fall 100 basis points Aug. 10 Sept. 10 Oct. 10 Nov. 10 Dec. 10 Millions of Euros

Bankinter Annual Report 2009 113 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The following graph shows the sensitivity of the interest margin to changes in the slope of the curve over a twelve-month time horizon. This scenario is constructed by keeping the 6-month interest rate constant and varying the short-term (up to 3 months) and 12-month rates by the same amount in opposite directions in order to introduce a +/- 25 basis points variation in the slope of the curve over the period considered. Sensitivity of the financial margin (basis points) 10.00 5.00 0 Liquidity Risk Structural liquidity risk is connected with the Bank's ability to meet its payment obligations and to finance its lending activities. To mitigate this risk, Bankinter performs coordinated management of its balance-sheet assets and liabilities and, specifically, of its interbank assets and liabilities and of calls on the capital markets. The measures used to control liquidity risk are the liquidity gap or map, and information and analysis regarding the specific status of the Bank's interbank and capital market assets and liabilities, as well as simulations in different scenarios of the liquidity requirements that a variety of different conditions of business growth or changes in market conditions could involve. -5.00 Market risk -10.00 Dec. 09 Jan. 10 Feb. 10 Mar. 10 Apr. 10 May 10 Jun. 10 Jul. 10 Aug. 10 Sept. 10 Increase in slope of 25 bps l Decrease in slope of 25 bps Oct. 10 Millions of Euros Nov. 10 Dec. 10 In addition to providing overall interest rate and liquidity risk management services, Treasury and Capital Markets operates in the markets to take advantage of any business opportunities that may arise. At 2009 year-end the sensitivity of the Bankinter Group 's economic value to parallel shifts of 200 basis points was EUR 33 million. In performing these functions, it uses the financial instruments that are most appropriate at any given time and the hedging necessary to mitigate market risk. Financial instruments traded must, as a general rule, be sufficiently liquid and appropriately hedged.

Bankinter Annual Report 2009 114 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk Every year the Board of Directors of Bankinter S.A approves limits and internal measurement procedures for the risk on each of the products and markets in which Treasury and Capital Markets operates. The market risk of the Treasury and Capital Markets activities and the limits thereon are measured using the Value at Risk (VaR) method, both overall and separately for each significant risk factor. Limits in terms of VaR are complemented by other measures, such as: stress testing, tests on sensitivities, equivalent positions and concentration. Specific limits are also established by credit and counterparty risk, as well as approved markets. We will now go on to describe the methodology for measuring the main market risk measurements. Value-at-Risk (VaR). Value-at-Risk(VaR) is defined as: the maximum expected loss on a given portfolio of financial instruments, under normal market conditions, for a given confidence level and time horizon, as a result of changes in market prices and variables. VaR is the main indicator used daily by Bankinter to measure and control in an integrated and overall way the exposure to market risk from interest rate, equity, exchange rate and credit risk in the operations of Treasury and Capital Markets. In the course of 2009 we completed implementation of the Murex tool for monitoring, managing and measuring market risk VaR in 2009 the various portfolios and types of risk, by means of historical simulation. The historical simulation method is based on an analysis of potential changes in the value of a position, using historical movements of the individual files which it comprises. VaR is calculated with a confidence level of 95% and a time horizon of one day. The enclosed table shows the average and year-end VaR values of the Bank's trading positions for 2009: Millions of Euros Average Final Interest rate VaR 0.50 0.38 Variable Income VaR 0.25 0.16 Exchange Rate VaR 0.02 0.02 Credit VaR 0.04 0.04 Total VaR 0.60 0.38 Confidence level 95%, time horizon of 1 day Apart from this, a monthly monitoring is carried out of the VaR of its subsidiary Línea Directa Aseguradora, using the parametric method. The VaR of Línea Directa Aseguradora's portfolio, based on the same assumptions, as at 31 December 2009 amounted to EUR 0.8 million.

Bankinter Annual Report 2009 115 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk The basic purpose is to identify and mitigate the major operational risks, seeking to minimise the possible losses associated with them Stress Testing Stress testing, or the analysis of extreme scenarios, is a complementary test to VaR. The estimates from the stress tests quantify the maximum potential loss in portfolio value under extreme scenarios of change in the risk factors to which the portfolio is exposed. The scenarios used in stress tests are obtained from an analysis of the behaviour of these risk factors in historical crisis situations, and a simulation is also carried out of the potential effect of extreme changes in interest rates, stock markets, exchange rates and credit conditions, and also of significant changes in volatility. The following table shows the 2009 average and year-end stress test estimates for the Bank's trading positions, prepared using the scenario of most extreme variations in the different risk variables. Stress Testing 2009 Millions of Euros Average Final Interest Rate Stress 2.19 3.04 Variable Income Stress 2.23 2.17 Exchange Rate Stress 0.15 0.24 Volatility Stress 0.48 1.18 Credit Stress 0.10 0.12 Total Stress 5.15 6.75 Applying the same scenarios to the positions of the portfolio of Línea Directa Aseguradora at the end of 2009, VaR amounted to EUR 11.2 million. Operational risk The definition of operational riskused by Bankinter is that of the Basel Capital Accord (BIS II): the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk". Our operational risk management model incorporates the best market practices, in line with the recommendations contained in the BIS II Accord, and drawing on the ideas set forth in the Basel Committee on Banking Supervision paper 'Sound practices for the management and supervision of operational risk'. The basic purpose is to identify and mitigate the major operational risks, seeking to minimise the possible losses associated with them, to which end comprehensive procedures have been established for the assessment, analysis, measurement, reporting and mitigation of operational risks, in which a large part of the workforce takes part. During 2009, Bankinter took steps to enhance the control of these risks, achieving levels of management that allow us, among other things, to report capital consumption using the standard method which, pursuant to Solvency Circular 3/2008 is restricted to entities which - like Bankinter- have efficient and systematic operational risk management mechanisms in place.

Bankinter Annual Report 2009 116 7. Risk management > Basic principles of the risks function > Credit risk > Control, Monitoring, and Recoveries > Internal risk scoring models > Market Risk > Operational Risk As in previous years, operational risks were reviewed in all units of the organisation and work continued on perfecting and successfully testing contingency and business continuity plans, which recently resulted in the Bank's obtaining the first BS25999 certificate to be granted in Spain by the British Standards Institution (BSI) for the Business Continuity Management System, a certification that Bankinter's maintains the highest standards of quality and professional rigour in business continuity management of its IT platforms and systems. Lastly, all operational losses continued to be gathered, classified and documented in the Operational Losses database that Bankinter has maintained since 2004, thus generating the necessary historical information for studying trends, evaluating their correlation with indicators and validating the effectiveness of the mitigation plans in place. For its part, the Operational Risk Committee (now renamed Operational, Reputational and New Products Risk Committee) of Bankinter continued the work it has been doing since its establishment in November 2006, aimed essentially at deciding on corrective measures for the main risks, with particular attention being given to the control of risks inherent in selling new products.

Bankinter Annual Report 2009 117 Results 8Results Profit before tax of the Bankinter Group for the year 2009 was EUR 345.9 million (2.7% up on 2008); while Net Profit was EUR 254.4 million (up by 0.8%). The Bank has a non-performing loans rate of 2.46%, the lowest by far in the banking system. Carmen Casado, Private Banking Project Manager

Bankinter Annual Report 2009 118 8. Results > Results > Bankinter s Contribution to GDP Income before tax of the Bankinter Group for the year 2009 was EUR 345.9 million (2.7% up on 2008); while Net Income as EUR 254.4 million (up by 0.8%). Results In financial year 2009, the Bankinter Group once again generated solid recurring results that withstand the prolonged cycle of economic difficulty, with a level of solvency that is coherent with its risk profile, the higher quality of the assets in the system and client business indicators that are very strong and with a clear strategic focus. Profit before tax of the Bankinter Group for the year 2009 was EUR 345.9 million (2.7% up on 2008); while Net Profit was EUR 254.4 million (up by 0.8%). It is worth pointing out also that net operating income before Allocations to allowances amounted to EUR 612.9 million, representing an increase of 17.2% on the previous year's figure. The margins of the profit and loss accounts are an example of solidity. The interest margin for example made an important contribution to results, reaching EUR 792.6 million for the year, 17.7% more than in 2008, confirming the rising trend shown throughout the year and demonstrating that the management of differentials supported by the quality of lending - was one of the main features of the year. Gross income amounted to EUR1,245.2 million, up by 18.2%; and operating income reached EUR 362.8 million, representing a 7.8% increase on the figure for 2008. Earnings per share (EPS) were EUR 0.57, compared with EUR 0.63 for 2008, although this also reflects the fact that during the year the Bank carried out a capital increase and that as a result the number of shares increase during the financial year by 67,553,852 or 16.6%. The year now closing confirmed the suitability of the Bankinter strategic model in the client business, which shows good activity despite the difficulty in the environment. Indeed, in 2009 the Bank was able to attract more than 73,000 new customers and significantly increase its lending to target segments: a 4.2% increase in lending to high income customers compared with the December 2008 figure, and a 6.4% increase in Corporate banking, which shows that the bank has maintained its habitual and rigorous corporate lending activity at a good level. The high income Customer segment continue to provide some of the most significant turnovers, confirming the success of the Bank's strategic approach. It is for example noteworthy that Bankinter continues to be the bank with the largest growth in SICAVs (open-ended collective investment schemes), which are the principal investment instrument for private wealth. At year-end, Bankinter had a total of 240 SICAVs, with assets under management up by 17.5% on 2008. This places us at number three in the INVERCO (Spanish Association of Collective Investment Schemes) ranking by number of companies managed, with a market share of 7.6%. The sale of insurance continues to strengthen the Bank's business results, with a significant increase in figures such as: 5% more in risk life policies, 9% more in non-life policies and 30% more in savings insurance by comparison to 2008, reaching a consolidated volume of 439 million euros. Also worthy of note are the figures for the growth and business recorded by LDA: an increase of 9.4% in the number of policies

Bankinter Annual Report 2009 119 8. Results > Results > Bankinter s Contribution to GDP relative to the previous year (reaching a total of 1.7 million); and EUR 653.1 million in net premiums, representing a 2.3% increase on the year before. The equities business, a strategic business in which Bankinter is a key player, ended a year of quarter-on-quarter growth with 1,855 million orders executed for the whole year and an increase of 15% in fee income from this business compared with 2008. All these achievements were based on customer service of a quality that continues to lead the way in the industry and which constitutes one of the values that sets the Bank apart. Thus Bankinter's Net Satisfaction Index (NSI) stood at 74.6 at yearend. In terms of quality, the Bank is 4.8 NSI points ahead of the average for the natural persons market. Income Statement (EUR 000s) 2008 2009 Difference Amount Amount Amount % Interest and similar income 2,595,295 1,672,477-922,818-35.56 Interest expense and similar charges -1,921,928-879,898 1,042,030-54.22 Net Interest Income 673,367 792,579 119,212 17.70 Return on Capital instruments 7,643 10,934 3,292 43.07 Share in results of entities accounted for using the equity method 45,947 16,234-29,713-64.67 Net fee and commission income 226,060 202,233-23,827-10.54 Gains/losses on financial transactions and exchange differences 102,729 88,788-13,941-13.57 Other operating income/expenses -2,146 134,414 136,560 -- Gross Income 1,053,599 1,245,182 191,583 18.18 Personnel expenses -260,877-325,040-64,162 24.59 Administrative expenses, Depreciation and Amortisation -269,887-307,248-37,361 13.84 Allocations to allowances 6,251-29,628-35,879-573.99 Losses from asset impairment -192,612-220,502-27,891 14.48 Operating Income 336,473 362,764 26,290 7.81 Gains/losses on disposal of assets 496-16,823-17,320-3.489.93 Profit or Loss Before tax 336,970 345,940 8,971 2.66 Income tax -84,680-91,536-6,855 8.10 Profit or Loss from Ordinary Activities 252,289 254,404 2,115 0.84

Bankinter Annual Report 2009 120 8. Results > Results > Bankinter s Contribution to GDP Income Statement (EUR 000s) 4Q09 3Q09 2Q09 1Q09 4Q08 Interest and similar income 324,893 379,948 445,235 522,402 672,093 Interest expense and similar charges -147,999-164,948-225,252-341,699-482,324 Net Interest Income 176,894 215,000 219,983 180,702 189,769 Return on Capital instruments 1,721 1,633 5,807 1,773 1,231 Share in results of entities accounted for using the equity method 2,505 2,094 4,115 7,521 14,794 Net fee and commission income 51,171 50,045 51,964 49,053 49,644 Gains/losses on financial transactions and exchange differences 25,322 11,522 28,254 23,690 35,614 Other operating income/expenses 45,389 49,634 36,702 2,688-3,606 Gross Income 303,002 329,928 346,825 265,427 287,446 Personnel expenses -85,671-84,703-84,839-69,826-58,531 Administrative expenses, Depreciation and Amortisation -83,036-85,117-84,400-54,695-77,349 Allocations to allowances -12,482-2,190-3,198-11,758 2,828 Losses from asset impairment -53,096-56,848-77,783-32,776-90,290 Operating Income 68,718 101,068 96,605 96,373 64,104 Gains/losses on disposal of assets -3,774-11,655-608 -786-369 Profit or Loss Before tax 64,944 89,413 95,997 95,586 63,734 Income tax -15,386-23,236-26,637-26,277-13,231 Profit or Loss from Ordinary Activities 49,558 66,177 69,360 69,310 50,503

Bankinter Annual Report 2009 121 8. Results > Results > Bankinter s Contribution to GDP Yields and costs (%) 31/12/2008 31/12/2009 Weighting Rate Weighting Rate Deposits at central banks 1.11 3.38 1.05 1.05 Deposits with credit institutions 7.97 3.90 6.64 0.90 Money market operations 0.00 0.00 0.00 0.00 through counterparties Loans and advances to other debtors (a) 75.41 5.37 71.17 3.81 Debt securities 11.40 4.09 14.45 2.91 Equities 0.71 2.07 0.69 2.89 Average earning assets (b) 96.60 5.22 93.99 3.24 Other assets 3.40 6.01 Average total assets 100.00 5.04 100.00 3.05 Central banks' deposits 3.64 4.72 5.58 2.16 Bank deposits 9.78 3.92 10.89 1.49 Money market operations 0.10 4.01 0.40 0.48 through counterparties Customer resources (c) 77.51 3.96 71.83 1.89 Customer deposits 44.59 3.34 40.79 1.47 Debts represented by negotiable securities 32.92 4.80 31.04 2.44 Subordinated liabilities 1.05 5.52 1.69 3.24 Remuneration of capital having the nature of a financial liability 0.68 5.47 0.03 0.00 Average interest-bearing resources (d) 92.76 4.01 90.42 1.76 Other liabilities 7.24 9.58 Average total resources 100.00 3.72 100.00 1.59 The table of yields and costs shows a breakdown of the net interest income, taking into account the relative weight and rates of the assets and liabilities in the balance sheet.

Bankinter Annual Report 2009 122 8. Results > Results > Bankinter s Contribution to GDP Administrative expenses Personnel expenses (Thousands of euros) 2008 2009 09/08 (%) Salaries and bonuses paid to active staff 180,817 242,368 34 Social Security contributions 47,179 55,671 18 Contributions to defined plans 2,249 1,086-52 Severance packages 8,220 3,388-59 Remuneration based on Capital instruments 0 0 - Other personnel expenses 22,412 22,527 1 Total 260,878 325,040 25 Other general administrative expenses (Thousands of euros) 2008 2009 09/08 (%) Taxes 4,287 4,273-0.33 Buildings and supplies 34,441 36,927 7.22 Representation and travel expenses 8,752 6,772-22.62 Material and miscellaneous outgoings 30,911 31,722 2.62 External services 62,713 61,001-2.73 IT and communication 69,564 66,333-4.64 Advertising* 18,951 32,398* 70.96 Other expenditure 7,334 14,359 95.79 Total 236,952 253,786 7.10 *Including Línea Directa Aseguradora

Bankinter Annual Report 2009 123 8. Results > Results > Bankinter s Contribution to GDP Bankinter's Contribution to Gross Domestic Product. The Bankinter Group's contribution to GDP in 2009 was EUR 675.2 million, representing an increase of 12.4% on the previous year. This contribution can be broken down as follows: Value added to GDP (Thousands of euros) 2008 2009 09/08 (%) Employee salaries 260,877 325,040 24.59 Contribution to the State 88,967 95,809 7.69 Corporate Income Tax 84,680 91,536 8.10 Other taxes 4,287 4,273-0.33 Remuneration of capital 120,214 127,202 5.81 Retained earnings 132,077 127,202-3.69 Total 602,135 675,253 12.14

Bankinter Annual Report 2009 124 9. Shareholders equity and Bankinter shares > Shareholders equity > Bankinter shares > Market return Shares 9Shareholders' equity and Bankinter shares Bankinter has an efficient shareholders' equity structure, the creation of long-term value for shareholders being one of its strategic priorities. In 2009 the share price rose by 13.3%. Ángeles Ramos, Regulatory Capital Unit Manager

Bankinter Annual Report 2009 125 9. Shareholders' equity and Bankinter shares > Shareholders' equity > Bankinter shares > Market return Shareholders' equity The Bankinter Group has an efficient shareholders' equity structure, the creation of long-term value for shareholders being one of the Bank's strategic priorities. In this regard, the Bank conducts appropriate equity management by assigning these scarce resources to activities that generate the greatest possible returns. Total regulatory capital based on the criteria of the Bank for International Settlements as set out in "Basel II" stood at EUR 3,267 million at the end of 2009. Difference Thousands of euros 31/12/2008 31/12/2009 Amount % Capital and Reserves 1,875,338 2,357,522 482,184 25.71% Capital having the nature of a financial liability 343,165 343,165 0 0.00% Own securities -44,016-538 43,478-98.78% Intangible and other assets -74,218-308,716-234,498 315.96% Other deductions -48,196-79,085-30,889 64.09% Tier I 2,052,072 2,312,348 260,276 12.68% Revaluation reserve 102,307 116,087 13,780 13.47% Subordinated debt 480,687 713,566 232,879 48.45% Generic allowances 235,497 203,683-31,814-13.51% Other deductions -46,584-79,085-32,501 69.77% Tier II 771,908 954,251 182,344 23.62% Total net worth 2,823,979 3,266,599 442,619 15.67% Risk-weighted assets 27,752,569 31,369,797 3,617,229 13.03% Tier I (%) 7.39 7.37-0.02-0.27% Tier II (%) 2.78 3.04 0.26 9.35% Capital ratio (%) 10.18 10.41 0.23 2.27% Surplus resources 603,774 757,015 153,241 25.38% (*) Ratios estimated in accordance with the Bank of Spain's Circular on Determination and Control of Minimum Capital Requirements. The lower limit of the shareholders equity requirements provided in Transitional Provision Eight of the aforementioned Circular is not applied. Internal models are applied to the following portfolios: Home mortgages for private individuals, Small companies, Medium size companies, Project finance and Unsecured loans.

Bankinter Annual Report 2009 126 9. Shareholders' equity and Bankinter shares > Shareholders' equity > Bankinter shares > Market return In 2009 the share price rose by 13.3%. Capital considered as Tier I amounted to EUR 2,312 million, 12.7% more than in December 2008. Tier II capital stood at EUR 954 millions, EUR 182 million more than at the end of 2008. This gives a total of EUR 3.267 million at the end of 2009, compared with EUR 2,824 million one year earlier. Surplus capital grew by more than 25%, reaching EUR 757 million at year-end. Bankinter continues to have an adequate capital structure that is endorsed by the principal rating agencies, which once again gave Bankinter an excellent rating. The ratings awarded by the principal rating agencies are as follows. Bankinter shares The share price rose by 13.3% in 2009. This, together with the dividend paid from 2009 results, gave shareholders a total return of 17.6%. The table shows a comparison of the performance of Bankinter's shares (+13.3%) against the Ibex35 (+29.8%) and EuroStoxx50 (+21.0%). 170% 150% 130% 110% Short-term Long-term Moody s P1 A1 90% Standard & Poor s A1 A 70% Dec. 08 Jan. 09 Feb. 09 Mar. 09 Apr. 09 May 09 Jun. 09 Jul. 09 Aug. 09 Sept. 09 Oct. 09 Nov. 09 Dec. 09 Bankinter l DJ Euro Stoxx 50 l Ibex 35

Bankinter Annual Report 2009 127 9. Shareholders' equity and Bankinter shares > Shareholders' equity > Bankinter shares > Market return Figures per share (euros) 2008 2009 Difference % EPS 0.57 0.63-0.06-9.52% Carrying value per share 5.19 4.80 0.39 8.13% Listing Lowest 5.82 5.64 Highest 9.81 12.96 Last 7.15 6.31 Stock market ratios (number of times) 2008 2009 PER (Price/Earnings) 13.30 10.08 Price/Book Value 1.39 1.31 Profitability per share (%) 3.76% 4.74% As regards stock market ratios, the market continues to grant Bankinter a premium over its main competitors, demonstrating shareholders' confidence in the Bank's future development and the value they attach to a number of other factors such as the low delinquency rate and its high degree of coverage. Bankinter's exposure to sectors affected by the slowdown is very low and this, combined with the Bank's policy of selective growth in lending, has enabled it to maintain one of the lowest, if not the lowest, non-performing loans ratios in the Spanish financial system. Earnings per share (EPS) amounted to EUR 0.57 which represents a decrease of 9.5% relative to the previous year, but which also reflects the fact that during 2009 the Bank carried out a capital increase whereby the number of shares in circulation grew by 17% on that of the previous year. Pay-out on 2009 results was as follows: Date Dividend per share (euros) Number of shares Own securities (own shares) Shares with right Amount (Thousands of euros) Results for the financial year July 09 0.07135 473,447,732 285,765 473,161,967 33,760 2009 Oct. 09 0.07353 473,447,732 65,893 473,381,839 34,808 2009 Jan. 10 0.07583 473,447,732 72,599 473,375,133 35,896 2009 Apr. 10 0.04803 473,447,732 69,372 473,378,360 22,738 2009 Total 0.26874 127,202

Bankinter Annual Report 2009 128 9. Shareholders' equity and Bankinter shares > Shareholders' equity > Bankinter shares > Market return ADRs ADRs are a type of product enabling US residents to invest in foreign companies by means of an ADR (American Depositary Receipt) and to receive dividend payments in the manner most convenient to them. Bankinter's ADR programme is administered by the Bank of New York. As at 31 December 2009 there were 158,000 ADRs in circulation, 31% more than at the same date one year earlier. Variation inbankinter ADRs (2009) 180,000 160,000 140,000 Share Capital and Own securities The share capital of Bankinter S.A. was represented, as at 31 December 2009, by 473,447,732 shares, each with a nominal value of EUR 0.30 fully subscribed and paid up. In 2008 this figure was 405,893,880 shares, each with a nominal value of EUR 0.30. This difference is due to the fact that in May 2009 Bankinter carried out a capital increase with pre-emptive subscription rights for a total nominal amount of EUR 20,266,155.60 and a total effective amount of EUR 361,413,108 by issuing 67,553,852 shares, each with a nominal value of EUR 0.30 and with a Issue premium of EUR 5.05 per share. The shares issued were of the same class and series as those already in circulation and represented by book entries. 120,000 100,000 80,000 60,000 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. The capital increase was agreed by the Bank's Board of Directors on 13 May 2009, under the powers delegated to it by the Annual General Meeting of Shareholders of Bankinter S.A. on 23 April 2009. The basic purpose of the capital increase was to finance the acquisition of 50% of the capital of Línea Directa Aseguradora S.A., which until then had been owned by Direct Line Insurance Group, a subsidiary of the Royal Bank of Scotland Group. Bankinter acquired, for EUR 426 million, the remaining 50% of the share capital of LDA, which consequently became wholly owned by Bankinter. The Board of Directors of Bankinter considered that this transaction constituted a unique opportunity for the Bank and its

Bankinter Annual Report 2009 129 9. Shareholders' equity and Bankinter shares > Shareholders' equity > Bankinter shares > Market return shareholders, given the terms on which it was carried out as well as the characteristics, strengths and earnings trend of LDA, a leading firm in the motor insurance direct sales segment, with a portfolio that at the time contained over 1.6 million policies and 1.2 million insured persons. The Board of Directors of the Bank also valued the talent of the management team running the company and the medium- and long-term benefits that may accrue in both Bankinter and LDA as a result of the closer commercial and management relations to which the acquisition will undoubtedly lead. In view of the increased capital consumption that the acquisition entailed at the time of its completion, the Board of Directors considered it opportune to ask shareholders to contribute more capital so as to maintain and even strengthen the Bank's capital base. All the shares are represented by book entries, are listed on the Madrid and Barcelona stock exchanges and are traded by the Spanish computerised trading system. Bankinter has 78,626 shareholders. The main features of the shareholder structure are as follows: Resident shareholders hold 244,133,165 shares, representing 51.5% of the share capital. Non-residents hold 229,314,567 shares, representing 48.4% of the share capital. Members of the Bank's Board of Directors hold, directly or indirectly, 83,501,022 shares, representing 17.6% of the share capital. Own securities at ear-end consisted of 72,599 shares. Shareholders of record holding more than 10% of the share capital at 2009 year end are detailed in the following table: Shareholders with an ownership interest of more than 10% Name Total Shares % Crédit Agricole 110,878,560 23.42 Cartival S.A.* 75,392,305 15.92 *A company controlled by Jaime Botín-Sanz de Sautuola

Bankinter Annual Report 2009 130 9. Shareholders' equity and Bankinter shares > Shareholders' equity > Bankinter shares > Market return Directors' shareholdings as at 31 December 2009 Name Number of direct shares Number of indirect shares % of total share capital Pedro Guerrero Guerrero 2,937,882 134,171 0.65 Jaime Echegoyen Enriquez de la Orden 1,000,000 5,799 0.21 Cartival S.A. 68,109,311 7,282,994 15.92 Fernando Masaveu Herrero 446,311 0 0.09 Marcelino Botín-Sanz de Sautuola 124,603 0 0.03 José Ramón Arce Gómez 1,882,969 34,160 0.40 John de Zulueta Greenebaum: 117,142 0 0.02 Gonzalo de la Hoz Lizcano 363,786 0 0.08 Jaime Terceiro Lomba 8,025 0 0.00 Rafael Mateu de Ros 903,179 0 0.19 José Antonio Garay Ibargaray 150,690 0 0.03 Share ownership structure by number of shares as at 31 December 2009 Brackets Number of Shareholders % Number of Shares % From 1 to 100 shares 42,059 53.49 447,410 0.09 From 101 to 1.000 shares 20,835 26.5 9,451,832 2.00 From 1,001 to 10,000 shares 13,651 17.36 42,059,759 8.88 From 10.001 to 100.000 shares 1,902 2.42 45,371,856 9.58 More than 100,000 shares 179 0.22 376,116,875 79.44 Summary by type of shareholders Number of Shareholders % Number of Shares % Residents 78,000 99.20 244,133,165 51.56 Non-residents 626 0.80 229,314,567 48.44 Total 78,626 473,447,732

Bankinter Annual Report 2009 131 9. Shareholders' equity and Bankinter shares > Shareholders' equity > Bankinter shares > Market return At the end of 2009, the Bankinter Group held 72,599 shares in Own securities, as against 3,590,087 shares in 2008 and 4,183,200 in 2007 Share Capital and Own securities % 2004 2005 2006 2007 2008 2009 January 1.33 1.31 1.17 0.02 1.06 0.84 February 1.33 1.20 1.17 0.03 1.03 0.84 March 1.32 1.20 1.17 0.02 1.03 0.64 April 1.32 1.19 1.16 0.02 1.03 0.92 May 1.32 1.18 1.16 0.02 1.03 0.14 June 1.32 1.18 0.75 0.03 1.03 0.06 July 1.31 1.18 0.58 0.02 1.02 0.01 August 1.31 1.19 0.41 0.02 1.02 0.01 September 1.31 1.18 0.02 0.15 1.02 0.01 October 1.31 1.16 0.00 0.09 1.01 0.01 November 1.31 1.16 0.02 0.95 0.96 0.01 December 1.31 1.17 0.02 1.05 0.88 0.02

Bankinter Annual Report 2009 132 9. Shareholders' equity and Bankinter shares > Shareholders' equity > Bankinter shares > Market return Market return Bankinter shares closed 2009 at EUR 7.15 per share, representing an increase of 13.31% for the year. This, together with the dividend pad from 2009 results, gave shareholders a total return of 17.57%. Over the past year the Bank's capitalisation has grown by more than 32% to EUR 3,385 million. Capitalisation 6.000 5.000 4.000 3.000 2.000 1.000 0 1965 1970 1975 1980 1985 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Bankinter Annual Report 2009 133 Brand Brand Brand The Bankinter brand serves to position the Bank as a modern, integrated and intelligent institution. Bankinter has received recognition from prestigious institutions in the world of brands, which have rewarded not just the Bank's astute brand management but also its willingness to explore routes other than the conventional ones. Yolanda Sanz Senior Image and Brand Manager Executive

Bankinter Annual Report 2009 134 Brand Since 2006 the Bankinter brand has been making a particular effort to highlight what makes us different as an organisation. The drive and improvement campaign carried out this past year was acknowledged by some of the most prestigious institutions in the field of brands, giving a strong boost to the solidity of our corporate identity.

Bankinter Annual Report 2009 135 1. Gestión de la calidad Brand > Calidad Bankinter > Un servicio diferente > Calidad en clientes particulares > Calidad en Pymes > Calidad en incidencias > Calidad y el cliente interno > Actuando en la mejora de la calidad Strong in adversity In conditions that were certainly complex for financial institutions and above all for the positive development of its image, Bankinter once again strove to provide a quality service, establishing transparent, solid and durable relationships with its various stakeholder groups. The Bankinter brand was unquestionably a useful tool in achieving this end. In positioning ourselves as a model modern, integrated and intelligent organisation, we have been helped by the brand's acting as a catalyst for the Bank's activity, internally and externally, imparting meaning and direction to the various initiatives, providing guidelines for appropriate communication and of course strengthening the solid experience and the loyalty of the various groups concerned. Unshakeable spirit Over the course of this past year a painstaking review of the state of our brand was conducted. The process was meticulous, involving: in-house and external interviews, workshops and qualitative research focus groups, a visual audit, etc. This past financial year allowed us to assess the depth of our positioning within the organisation, and to understand how we are perceived externally, enhancing what worked best and correcting any inefficiencies. It was confirmed that Bankinter continues to be characterised by a strong survival instinct that drives it in a quite exceptional way to pursue excellence in everything it does, with the aim of constituting an assured alternative to the conventional banking system. In questioning the established order, we relied mainly on four factors: agility, enthusiasm, integrity and originality. Our surest and deepest values, our most personal hallmark. To be exceptional is conditio sine qua non of our existence. For Bankinter it is not an option but an obligation. It is the constant challenge we set ourselves as an organisation and as professionals each of us individually. It is what has enabled Bankinter to occupy a benchmark position in the Spanish banking sector. Making the difference visible Within the Banks' particular multi-channel strategy, the branches are the most visible signs in terms of the brand. From the pedestrian citizen's point of view, 2009 was marked by a substantial advance as regards the consolidation of the brand: almost all Bankinter branches have now been brought into line with the new corporate identity. The year ended with 98% of facades and 32% of interiors completely in line with principles and requirements of the brand. The change has been very positively received: in December 2009, Inmark's latest quarterly market survey for the financial sector revealed a private individual customer Net Satisfaction Index of 73.3 as regards the interior and exterior image of our branch offices. This places us 3.1 points above the average for the sector (which includes banks and savings banks). An investment and an effort that were worth it. The branches are a key point of contact between Bankinter and its customers, as well as being the workplace of a large proportion of its employees, so they must faithfully reflect the Bank's values.

Bankinter Annual Report 2009 136 1. Gestión de la calidad Brand > Calidad Bankinter > Un servicio diferente > Calidad en clientes particulares > Calidad en Pymes > Calidad en incidencias > Calidad y el cliente interno > Actuando en la mejora de la calidad A recognised and consolidated brand In 2009 Bankinter received awards from some of the most prestigious institutions in the world of brands. In all cases awards were not just for astute development and management of the Bank's image,but also for its willingness to explore routes other than the conventional ones and to make possible a different and successful banking model.

Bankinter Annual Report 2009 137 1. Gestión de la calidad Brand > Calidad Bankinter > Un servicio diferente > Calidad en clientes particulares > Calidad en Pymes > Calidad en incidencias > Calidad y el cliente interno > Actuando en la mejora de la calidad 1 4th ESADE Brand Centre Awards April 2009 Granted by the prestigious business school ESADE, in collaboration with Accenture and the daily Expansión, the awards specifically recognise brand strategies created and/or developed in Spain, both those aimed at the consumer or end user (B2C) and at professionals and businesses (B2B), that have succeeded in contributing added value that is measurable based on results. These are the first awards in Spain to focus on effectiveness and on results deriving from brand strategies rather than on whether brands are well known because of their prestige, advertising, etc. The purpose is to reward the building of strong, consistent brands that are competitive in domestic and international markets and that constitute at the same time a source of knowledge, reference and learning for the business community as a whole. In the 4th Brand Centre Awards, Bankinter took the trophy in the Corporate Brands category, earning a special mention for actions to develop value undertaken vis-à-vis all our stakeholders: customers, shareholders, employees, society at large and other groups of interest. Being exceptional every day is difficult, not being exceptional is easy.

Bankinter Annual Report 2009 138 1. Gestión de la calidad Brand > Calidad Bankinter > Un servicio diferente > Calidad en clientes particulares > Calidad en Pymes > Calidad en incidencias > Calidad y el cliente interno > Actuando en la mejora de la calidad Bankinter, an example of how a medium-size bank can build a great brand. Interbrand 2 Interbrand's 2009 Best Spanish Brands ranking, November 2009 Established in 1974, and with close to 40 offices worldwide, Interbrand is the world's leading brand consultancy. The method it uses to evaluate brands is a contrastive formula that looks at brands from the point of view of financial strength, importance of consumers' reasons for buying and the likelihood of revenues arising from the brand. Its method evaluates brands rather as an analyst would value any other asset: based on estimated future gains deriving from this asset. This year Bankinter is in 25th place on the ranking. A brand value estimate at EUR 242 million places us among Spain's most solid and prestigious companies. We are moreover the only financial institution whose estimated brand value rose this past year (by 1%), whereas the rest all fell, on average by 18%. The study acknowledges the effort made by the Bank in terms of management and brand strengthening, above all as regards incorporating the most innovative initiatives in branding: renovation of branches, development of corporate music and aroma and, in general, the sensation of solidity transmitted through all channels. Interbrand also considers that Bankinter has redefined the business of mid-size banking, becoming the first institution to introduce mobile services as well as other channels, an effort that has found expression in the current offering of mobile phone and internet services. In summary, Bankinter has shown that being a mid-size bank by no means excludes having a great brand.... 20 Damm 21 Bancaja 22 El País 23 FC Barcelona 24 Gas Natural 25 Bankinter 26 Acciona 27 Telepizza 28 Tous 29 Campofrío 30 Cola Cao

Bankinter Annual Report 2009 139 1. Gestión de la calidad Brand > Calidad Bankinter > Un servicio diferente > Calidad en clientes particulares > Calidad en Pymes > Calidad en incidencias > Calidad y el cliente interno > Actuando en la mejora de la calidad 3 Superbrands, December 2009 Superbrands, with a presence in more than 80 countries, is the world's leading independent authority in the field of branding. It fulfils an important role in the business sector since it identifies, evaluates and rewards the outstanding brands of each country with a view to promoting excellence in the discipline of branding. In each country a panel of local experts is appointed to assess which are the most notable brands. This panel is formed by specialists from recognised brands, agencies linked to the various marketing disciplines and members of the country's main universities and business schools. Their knowledge of the local business scene ensures that only most exceptional brands will be recognised as superbrands and be entitled to use the institution's seal. In this past year's edition of these Oscars of branding as they have become known, Superbrands selected Bankinter as one of the 25 Brands of Excellence in the Spanish market, and the only financial institution to be given the title in 2009. Particular credit was given for the efforts made to position Bankinter as a different bank using elements that go beyond the merely rational. Superbrands also stressed the capabilities displayed in not only brilliantly implementing a brand strategy but of developing and reinventing this same strategy to adapt it day by day to actual and anticipated market demands.

Bankinter Annual Report 2009 140 a Information Appendix for shareholders and customers The Statutory Annual Report of Bankinter S.A. is presented at the Annual General Meeting of Shareholders and is available to all the Company s shareholders. The information it contains comprises the period 1 January 2009 to 31 December 2009 unless specified otherwise. The previous Statutory Report, for 2008, was published on 18 March 2009. This document, drawn up by all areas of the Bank and coordinated by the External Communication Division, is intended for shareholders, customers and other stakeholders of the Bank in the broadest sense. Quarterly consolidated earnings reports are published in January, April, July and October and are available to shareholders. Appendix > Information to shareholders and customers > Management Structure Our advertising is subject to prior control by the Bank of Spain or the Spanish National Securities Market Commission (CNMV) and no significant incidents were recorded. In addition, we are members of INVERCO and have signed up to their 'General Code of Advertising Conduct of Collective Investment Undertakings and Pension Funds'. The Bank has the objective in the medium term of extending the scope of the information to companies that Bankinter controls or on which it exerts significant influence, where their impacts on sustainability are material. As far as possible and where it has been considered relevant for analysing trends, data for 2008 have been included in order to ensure the completeness and comparability of the information.

Bankinter Annual Report 2009 141 Appendix > Information to shareholders and customers > Management Structure Bankinter Telephone Banking telephone numbers: Private individuals (service in Spanish): 901 13 23 13 Private individuals (service in Spanish, calls from abroad): 34 91 657 88 00 Private individuals (service in Catalan): 901 23 23 23 Private individuals (service in Catalan, calls from abroad): 34 93 410 84 85 Private individuals (service in English): 901 135 135 Private individuals (service in English, calls from abroad): 34 91 657 88 01 Stock market specialists: 902 13 11 14 SMEs (from 8am to 7pm, Monday to Thursday and Fridays from 8am to 6pm): 901 15 15 15 SMEs (service in Catalan from 8am to 7pm Monday to Thursday and Fridays from 8am to 6pm): 901 16 16 16 SMEs (from 8am to 7pm, Monday to Thursday and Fridays from 8am to 6pm): 901 10 19 01 SMEs (service in Catalan from 8am to 7pm Monday to Thursday and Fridays from 8am to 6pm): 901 30 33 03 Information for non-customers: 901 13 13 13 Bankinter Telephone Banking customer service hours 24 hours a day, 365 days a year, you can call 901 13 23 13 to use the Automatic Service to make inquiries and bank transactions. Also, if you wish, you can request the assistance of an operator, Monday to Saturday from 8am to 10pm (mainland Spain time), by dialling or saying 0.

Bankinter Annual Report 2009 142 Appendix > Information to shareholders and customers > Management Structure SHAREHOLDERS' OFFICE Pablo Santos Romero Pico de San Pedro, 2 28760 Tres Cantos Madrid Tel. 91 339 82 60 91 339 75 00 Fax 91 339 83 23 e-mail: ofiaccionista@bankinter.es EXTERNAL COMMUNICATION Javier Calderón Serrano Head Office Paseo de la Castellana, 29 28046 Madrid Tel. 91 623 18 43 Fax 91 339 85 98 e-mail: comunicacion@bankinter.es CORRESPONDENT BANKS Zachary Towbin Head Office Paseo de la Castellana, 29 28046 Madrid Tel. +34 91 339 83 62 +34 91 339 75 00 Fax +34 91 339 7556 e-mail: zhtowbin@bankinter.es CUSTOMER SERVICE DEPARTMENT Rafael Olarte Corretjer Avda. de Bruselas, 12 28108 Alcobendas (Madrid) Tel. 901 113 113 Fax 91 623 44 21 e-mail: incidencias_sac@bankinter.es INVESTOR RELATIONS Gloria Ortiz Portero Jaime Hernández Marcos Avda. de Bruselas, 12 28108 Alcobendas (Madrid) Tel. 91 436 71 06 Fax 91 623 44 33 e-mail: Investor_Relations@bankinter.es

Bankinter Annual Report 2009 143 Appendix > Information to shareholders and customers > Management Structure Board of Directors The Board of Directors of Bankinter S.A. is composed of the following members: Position Personal/Corporate name Status Chairman Pedro Guerrero Guerrero Executive Deputy Chairman Cartival S.A.* Non-executive proprietary Managing Director Jaime Echegoyen Enríquez de la Orden Executive Director José Ramón Arce Gómez Independent non-executive Director John de Zulueta Greenebaum: Independent non-executive Director Jaime Terceiro Lomba Independent non-executive Director Marcelino Botín-Sanz de Sautuola y Naveda* Non-executive proprietary Director Fernando Masaveu Herrero* Non-executive proprietary Director Gonzalo de la Hoz Lizcano Independent non-executive Director José Antonio Garay Ibargaray Independent non-executive Director /Secretary to the Board of Directors Rafael Mateu de Ros Cerezo Other non-executive directors * Cartival S.A. Company represented on the Board of Directors by Alfonso Botín-Sanz de Sautuola y Nevada, representing significant shareholder Jaime Botín-Sanz de Sautuola. * Marcelino Botín-Sanz de Sautuola y Naveda: Linked to significant shareholder Cartival, S.A. * Fernando Masaveu Herrero: Linked to significant shareholder S.A. Tudela Veguín.

Bankinter Annual Report 2009 144 Appendix > Information to shareholders and customers > Management Structure Management Structure Management Committee and Coordination Committee Chairman Pedro Guerrero Guerrero Managing Director Jaime Echegoyen Markets and Products Lázaro de Lázaro General Secretariat Iñigo Guerra Customers Fernando Moreno Resources Pablo de Diego Risk & Finance David Pérez Renovales Innovation and Development Corporate Alfonso Sáez Technology Idoia Maguregui Intangible Assets Rita Rodríguez Arrojo *Reporting to the Management Committee Orange: Management Committee Orange + brown: Coordination committee

Bankinter Annual Report 2009 145 Appendix > Information to shareholders and customers > Management Structure Organisation Managers Eduardo Ozaita Vega Lucas Peinado Mataix Juan Manuel Castaño Escudero Antonio Fayos Crespo Sebastián Alvarado Díaz-Agero José Luis Dionisio Cervantes José Luis Vega Riestra Juan Villasante Cerro Antonio Berdiel Bitrian Joaquín Da Silva Castaño Luis Fernando Azcona López José Pérez Jiménez Alfonso Alfaro Llovera Andalusia Balearic Islands Castile and Leon la Mancha- Extremadura Catalonia Las Palmas Eastern Spain Madrid East Madrid West Navarra-Aragón-Rioja-Soria North-Western Spain Northern Spain Tenerife Corporate Madrid

The 2009 Bankinter Report is available on CD-Rom. To obtain a copy, please apply to Bankinter's External Communication Department or request it via e-mail: comunicacion@bankinter.es The list of Bankinter Branches and Agents is published as an offprint of this Report. Published by Bankinter Department of External Communication Design and development Gosban communication consultancy