Banco Sabadell2014 Results

January 29th, 2015

Disclaimer

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

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

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

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

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

1. The Spanish economy

2. 2014 take-aways and 2015 themes

3. 2014 Results

4. Commercial activity

5. Liquidity and ALCO portfolio

6. Risk and capital management

2

3

Spain is experiencing a recovery

Growth is significantly higherthan the euro area average

Source: Eurostat.

Economic activity reached a turning point in Q4 201 2

Real GDP(q/q change, %)

Domestic demand is now themain source of GDP growth

Source: Spanish National Statistics Office (INE).

Q1 14 Q2 14 Q3 14

Real GDP (q/q change %) 0.3 0.5 0.5Household spending 0.6 0.9 0.8

Government spending 1.1 -0.1 0.1

Investment in equipment 2.0 3.8 1.7

Investment in construction -1.7 0.8 0.6Exports 0.0 1.3 3.5

Imports 0.5 2.6 4.7

Real GDP (y/y change %) 0.7 1.3 1.6

0.1

0.2

0.5 0.5

0

0.1

0.2

0.3

0.4

0.5

0.6

Q3 13 Q4 13 Q1 14 Q2 14 Q3 14Euro area Spain

4

Positive developments can be found across a range of economic indicators

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

2009 2010 2011 2012 2013 2014

-10

-8

-6

-4

-2

0

2

4

m/m change, % y/y change, % (right axis)

Social Security registrations are experiencing positive YoY growthrates for the first time since theonset of the crisis

Source: Spanish Ministry of Labour.

*Since 2012.Sources: Spanish National Statistics Office (INE), Bank of Spain, Spanish Ministry of Economy and Bloomberg.

Lowest level*

Industrial production(y/y change %)

-8.1 0.0 Nov 14

Retail sales(y/y change %)

-11.8 1.9 Nov 14

Car registrations (y/y change %)

-36.1 21.4 Dec 14

Cement consumption (y/y change %)

-40.8 8.0 Dec 14

Electricity consumption (y/y change %)

-4.8 2.8 Nov 14

Tourist arrivals (y/y change %)

-1.2 5.1 Dec 14

PMI manufacturing (level)

41.1 53.8 Dec 14

PMI services (level)

40.2 54.3 Dec 14

Consumer confidence (level)

-40.0 -7.1 Dec 14

Current data

All episodes 276

of which non-commodity exporters 119

of which large and advanced countries 2

of which no nominal depreciation 1-10

-8

-6

-4

-2

0

2

4

Spain Euro area Germany France Italy

2009 2013

Evolution of non-financial privatesector debt (% of GDP)

The adjustment process is well underway

-18

-15

-12

-9

-6

-3

0

3

2008 2009 2010 2011 2012 2013 2014

Sources: ECB, IMF, Spanish National Statistics Office (INE), IGAE and AMECO.

House prices evolution(Y/Y change, %)

Primary public deficit fell from 9.3% of GDP in 2009 to 3.1% in 2013

Primary public balance(% of GDP)

Episodes of current account improvements larger than 10% of GDP in less than 5 years (1980-2013)

5

Spain2008-2013

0

50

100

150

200

250

Total Non-financialcorporations

Households

Peak Q2 14Q314

-34.8

-23.7

-11.1

450

500

550

600

650

700

750

800

850

600 650 700 750 800 850 900 950

60

70

80

90

100

110

120

2000 2002 2004 2006 2008 2010 2012

Spain USA Germany France

Exports are one of the Spanish economy's strengths

Source: WTO.

The number of exporting firms has grown significant ly(more than 50% since 2007)

Spain has managed to keep its share of export markets relatively stable

“Spain has successfully introduced quality gains, ei ther in the product or in the production process” (Bank of Spain)

Spanish exports of goods have diversified steadily, both in terms of geography and product

A lower index

value reflects a

lower

concentration by

geography and/or

product

September 2014

1995

Source: Datacomex.

Share of world goods exports

(2000=100)

Concentration of goods exports (Herfindahl index, X: by geography; Y: by product)

6

2012

2013

2014

- Labour market reform

- Budgetary Stability Law

- Public pension system reform

- Reform of public administrations

- Financial support to local and regional governments

- Law to guarantee market unity

- Law to support entrepreneurs

- Law for the rationalisation and sustainability of Local governments

- Tax system reform

- Measures to improve funding for SMEs

- Bankruptcy Law reform

Actions taken by the Spanish government

The Spanish government has also implemented significant structural reforms

- Law to control trade accounts payable in the public sector

- Law on transparency, access to public information and good governance

- Measures to add flexibility to and develop the rental market

- Law to improve the quality of education

- Youth Employment Guarantee Plan

- Independent Fiscal Responsibility Authority

- Better financing conditions to local and regional governments

- Restructuring of the financial sector

7

Spain: Economic recovery carries on in 2015

8

Domestic risk factors:• Political uncertainty

2013 2014 2015

GDP (yoy %) -1.2 1.4 2.3

Unemployment rate (%) 26.1 24.4 22.5

Weakness in the Eurozone’s economy will limit the pace of Spain’s recovery

Spain will have a positive behaviour within the Eurozone

Supporting factors:• Lower oil prices on an intensive oil usage

economy• Relatively benign financial conditions (ECB

QE support)• Euro weakness on an increasingly diversified

economyOther factors:• More neutral stance on fiscal policy• End of adjustments on construction sector• Progressive improvements on private sector

income and balances• Positive impact of already adopted structural

reforms

Spread of Spanish 10-year government bonds (b.p.)

Source: Bloomberg and Banco Sabadell.

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015

1. The Spanish economy

2. 2014 take-aways and 2015 themes

3. 2014 Results

4. Commercial activity

5. Liquidity and ALCO portfolio

6. Risk and capital management

9

Take-aways from 2014 …

Capital strengthening

First year of TRIPLEP&L dynamics

Asset quality

� In the AQR/Stress test Sabadell was the only Spanish bank with zero adjustments

� Fully loaded capital ratio of 11.5%

� Delivery of profit transformation

� On track to net profit target of €1bn in 2016e

� Performance so far enhances credibility of business plan

� NII growth of 24.5% driven by repricing of funding

� Fee income growth of 13.3% drivenby cross selling and AuM business

� Strong gains from financialoperations

� First year since the beginning of the crisis with reduction in NPLs

10

… and main themes for 2015

� Total net loan book to grow slightly, driven by SME franchise

� NII and commission income to continue to perform at a similar pace

� High ALCO portfolio resilience

� Acceleration of NPL reduction and high level of asset disposals

11

12

1. The Spanish economy

2. 2014 take-aways and 2015 themes

3. 2014 Results

4. Commercial activity

5. Liquidity and ALCO portfolio

6. Risk and capital management

2014 results

13

2013 2014% var 14/13

Net Interest Income 1,814.7 2,259.7 24.5%

Equity Method & Dividends 18.4 8.7 ---Commissions 759.7 860.9 13.3%Trading Income & Forex 1,547.1 1,863.2 20.4%Other Operating Results -163.1 -192.0 17.7%Gross Operating Income 3,976.8 4,800.5 20.7%

Personnel Costs -1,098.2 -1,202.6 9.5%Administrative Costs -587.9 -570.7 -2.9%Depreciations -228.4 -278.1 21.7%Pre-provisions Income 2,062.3 2,749.1 33.3%

Total Provisions & Impairments -1,763.6 -2,499.7 41.7%Gains on sale of assets 43.9 236.9 ---Profit before taxes 343.2 486.4 41.7%Taxes and others -95.4 -114.7 20.3%

Attributable Net Profit 247.8 371.7 50.0%*

Note: 2013 includes 7 months of BMN-Penedés, 6 months of Lloyds Spain and 2 months of Banco Gallego. Euros in million.*Proforma. Does not include FGD adjustments.

2013 net profit following FGD adjustments is €145.9M

Step-up in the level of net interest income

Net interest income evolutionEuros in million

*Excludes BMN-Penedés network, Lloyds Spain and Banco Gallego.

Net interest income 2014:+24.5% YoY

Net interest income 2014 like-for-like*:+21.7% YoY

+6.2% QoQ

14

Continued improvement in customer spreads in a low interest rate environment

Margin evolutionIn percentage

Customer spread

Net interest margin Cost of customer funds

Customer loan yield

Customer loan yield and cost of customer funds In percentage

1.75%

1.59%1.62%

1.86%

2.06%2.22%

2.29%2.35%

1.14%1.00% 1.05%

1.17%1.29%

1.36% 1.40%1.49%

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

3.94%3.66% 3.49% 3.51% 3.50% 3.47% 3.39% 3.32%

2.19% 2.07%1.87%

1.65%1.44%

1.25% 1.10% 0.97%

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

15

Main driver is the repricing of term deposits …

Contractual rates on term depositsIn percentage

Stock New production/renewals

New term deposits at

0.60%

3.35%3.58%

3.36%3.13%

2.84%

2.37%2.16%

1.83%1.67%

1.52%

3.06%

3.39%

2.16%

1.85%1.61%

1.51%1.29%

1.05%0.75%

0.60%

Sep-12 Jun-13 Mar-14 Dec-14

16

… expected to continue over the course of 2015 and 2016

Maturities of term deposits: volume and average int erest rate costEuros in million and in percentage

1Q15 2Q15 3Q15 4Q15

Current interest rate level of renewals of term deposits

1Q16 >2Q16

The size represents the volume of term deposits maturing every quarter.The percentage number is the current average interest rate paid on the term deposits.

2Q16

17

Limited downward pressure on the loan yield

Evolution of loan spreads by segmentIn percentage

Loan book mix and SME franchise allow Sabadell to maintain overall spreads

Back book loan spreads by segmentIn basis points

Mortgages to individualsTotal

188 186 187 186 184

88 87 89 90 92

268 268 266 260243

269 270 277 282 285

4Q13 1Q14 2Q14 3Q14 4Q14

SMEsCorporates

18

Lower funding costs have allowed for lower spreads on new production

Back book

Front book

Back book

Front book

Back book

Front book

Back book

Front book

Back book

Front book

Mortgages to individuals 88 229 87 227 89 214 90 209 92 201

SME 269 526 270 500 277 492 282 494 285 445

Corporates 268 342 268 327 266 302 260 297 243 265

4Q13 1Q14 2Q14 3Q14 4Q14

37.5 39.7 48.6 48.9 53.0

52.8 53.455.3 53.6 57.0

119.5 107.9109.6 112.7

121.3

4Q13 1Q14 2Q14 3Q14 4Q14

Commission income is growing …

Commission income evolutionEuros in million

Asset Mgmt1 ServicesLending

1 Includes mutual funds commissions and pension funds and insurance brokerage.

209.8 Commission income 2014:+13.3% YoY

201.0

Commission income 2014 like-for-like*:+9.5% YoY

*Excluding BMN-Penedés network, Lloyds Spain and Banco Gallego.

213.5 215.1231.3

19

2,4743,830

2,788

3,794

4,305

5,433867

1,695

585

954

December 2013 December 2014

… with outperformance in mutual funds

Volume evolution YTD, by type of fund Euros in million

� Bias towards higher margin products

� An increase of 42.5% in funds under management since December 2013

11,019

15,706

Equity fundsBalanced funds

Fixed income funds Guaranteed funds

SICAV, External funds and Others

+42.5%

+36.1%

+54.8%

+26.2%

+95.7%

+63.1%

20

287.7 292.8 286.0 295.0 295.5

1.9 6.024.9

1.8 0.6

4Q13 1Q14 2Q14 3Q14 4Q14

Personnel costs are well contained …

Personnel expenses evolutionEuros in million

*Including BMN-Penedés network, Lloyds Spain and Banco Gallego in 2013 and excluding non-recurrent costs.

Personnel expenses 2014 on a like-for-like basis*:

-1.2% YoY

Recurrent Non-recurrent

289.5 298.8Personnel expenses 2014:

+9.5% YoY

310.9 296.8 296.1

21

149.2 148.1 139.4 137.9 138.5

6.8 3.82.2 0.9

4Q13 1Q14 2Q14 3Q14 4Q14

… as are general expenses

General expenses evolutionEuros in million

General expenses 2014:

-2.9% YoY

General expenses 2014 on a like-for-like basis*:

-10.5% YoY

156.0

Recurrent Non-recurrent

151.9

*Including BMN-Penedés network, Lloyds Spain and Banco Gallego in 2013 and excluding non-recurrent costs.

141.6137.9 139.3

22

23

1. The Spanish economy

2. 2014 take-aways and 2015 themes

3. 2014 Results

4. Commercial activity

5. Liquidity and ALCO portfolio

6. Risk and capital management

Improving balance sheet dynamics

Customer funds and loans evolutionEuros in million

1 Other on-balance sheet term funds include term deposits and other funds placed in the retail network. Exclude repos. 24

Dec-13 Sep-14 Dec-14% Var.

YoY% Var.

QoQ

Total assets 163,441 162,785 163,346 -0.1% 0.3%Of which:

Gross loans to customers ex repos 124,615 121,612 121,141 -2.8% -0.4%Fixed income portfolio 21,743 23,993 23,408 7.7% -2.4%

Total liabilities 153,036 151,455 152,130 -0.6% 0.4%Of which:

On-balance sheet customer funds 94,497 97,375 94,461 0.0% -3.0%Other on-balance sheet term funds1

57,635 53,705 51,186 -11.2% -4.7%Sight deposits 36,862 43,670 43,275 17.4% -0.9%

Wholesale funding 26,063 23,972 23,085 -11.4% -3.7%ECB Funding 8,800 4,000 7,200 -18.2% 80.0%

Off-balance sheet funds 25,370 29,664 30,379 19.7% 2.4%Of which:

Mutual funds 11,019 14,665 15,706 42.5% 7.1%Pension funds 4,356 4,367 4,335 -0.5% -0.7%Third party insurance products 8,067 7,824 7,421 -8.0% -5.2%

0

400

800

1,200

1,600

2,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

28.9

27.9

28.3

28.6

29.4

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14

Loan growth is being reactivated

SME and company loans evolutionEuros in million

Cumulative monthly residential mortgage productionEuros in million

In December 2014 new residential mortgage production 69% above 2013 level

Growth in SME and company loans is accelerating

Note: SME and company loans include loans to SMEs, corporates and public sector and exclude NPLs.

2013 2014

€ 1,753M

€ 1,035M

+69% YoY

25

The book of performing loans is growing forthe first time since the beginning of the crisis …

Performing loans evolution Euros in million

+1%- 2%

26

… reflecting economic activity and Sabadell customer’s profile

27

Distribution of customer credit operations by segme nt, 4Q14 Number of operations

4% 10% 7%24%

35%

96% 90% 93% 76% 65%

Corporates Largecompanies

MediumCompanies

SmallCompanies

Selfemployed

Percentage of new credit operations to new customers

Percentage of new creditoperations to existing customers

604 2,201 3,569 47,544 25,779

One third of all credit operations to small companies and self employed are to new customers

36,862 37,082 39,418 43,670 43,275

57,635 57,608 55,625 53,705 51,186

11,019 12,318 13,705 14,665 15,706

4Q13 1Q14 2Q14 3Q14 4Q14

Maintaining overall position in customer funds

Evolution of customer funds and off-balance sheet funds Euros in million

Sight deposits On-balance sheet term funds

Mutual funds/investment funds

Note: On-balance sheet term funds include term deposits and other funds placed in the retail network: preference shares, mandatory convertible bonds, senior debt, commercial paper and other. Exclude repos. *According to Inverco.

Evolution of market share in investment funds

Market share* 5.11%

Dec-14

4.13%

Dec-13

Sabadell is showing one of the highest growth rate among peers in investment funds

28

Activity is picking up in insurance production …

Life insurance income - new production(sold individually)

+21.8%

+124.0%

+85.0%

+74.5%

Dec 2014YoY growth

Life insurance income - new production(sold as combined offer)

Home insurance income - new production

Other insurance income - new production

Sabadell benefits from its cross selling abilities

29

… and in credit cards, PoSand consumer finance income …

Credit cards - turnover +24.1%

+26.2%

+24.6%

Dec 2014YoY growth

Point of sale - turnover

Auto and consumer finance - new loan production

Sabadell’s pace of growth translates into higher market shares

30

… as well as in corporate banking, structured finance, custody and treasury …

Corporate banking – operating income +11.5%

+9.9%

+28.4%

+8.1%

Dec 2014YoY growth

Structured finance – commission income

Custodian business – commission income

Treasury – operating income in distribution

31

… while setting the highest standards in service quality

Sabadell´s brandsamongst the Top 11 global ranking, out of 50

Level of service quality Evolution of Sabadell quality index vs sector

Source: STIGA, EQUOS “RCB Análisis de Calidad Objetiva en Redes Comerciales Bancarias (4T 2014)”. 32

Sabadell’s domestic brands

Urquijo

7.54

7.217.32

7.20 7.24

6.90 6.89 6.907.03

7.217.42

6.956.77

6.61

6.11 6.06 6.01 6.036.23 6.28

6.156.48

2007 2008 2009 2010 2011 2012 2013 1Q14 2Q14 3Q14 4Q14

Sabadell Sector

4.7% 4.2%5.7%

7.9%

14.8%

20.7%

2009 2010 2011 2012 2013 2014

58.8% 57.7%51.3%

27.3%20.7%

13.3%

Entity 1 Entity 2 Entity 3 Entity 4 Sabadell Entity 6

Sabadell has improved its brand recognition during the crisis

1.0% 1.1% 1.3%1.6%

4.1%4.7%

2009 2010 2011 2012 2013 2014

Brand recognition among Spanish entities* Data as of 2014, in percentage

Sabadell brand recognition evolution In percentage

Source: FRS Inmark “Financial behaviour on retailers in Spain 2014”, based on 12,000 surveys across Spain.

* The Sabadell percentage Includes mentioning of Sabadell, Banco CAM, Penedèsand Banco Guipuzcoano

Top of Mind

Brand Recognition

33

34

1. The Spanish economy

2. 2014 take-aways and 2015 themes

3. 2014 Results

4. Commercial activity

5. Liquidity and ALCO portfolio

6. Risk and capital management

Deposits65.8%

Retail issues 1.3%

Repos6.2%

ICO financing 5.0%

Wholesale funding16.5%

ECB5.2%

Maintaining a balanced funding structure …

Group funding structure Group wholesale funding brea kdown

Covered bonds 62.4%

Senior debt 4.2%

Prefs + Subordinated

4.0%

ECP9.1%

Securitisation 15.7%

GGB4.6%

35

… and efficiently managing liquidity

Group wholesale funding maturitiesEuros in million

ECB liquidity positionEuros in million

Maturity by product type Euros in million

23,650

8,8005,500 7,200

Dec 2012 Dec 2013 Jun 2014 Dec 2014

36

Potential new issues pricing

2015 2018 2019 2020 202020172016The size represents the volume of maturitiesThe percentage number is the current level of coupon payment

>20222021

1Q15 2Q15 3Q15 4Q15 2016 2017 2018 2019 2020 2021 2022 >2022 Outst. AmountCovered Bonds (CH) 1,259 1,550 0 255 2,874 1,937 1,561 924 476 2,011 1,119 439 14,406GGB 0 0 0 0 0 1,059 0 0 0 0 0 0 1,059Senior Debt 0 0 0 0 701 0 100 57 0 0 25 0 882Preferred Shares and Subordinated Debt 0 0 0 0 318 66 0 0 425 40 0 15 864Other mid- and long-term financial instruments 0 0 0 0 0 0 18 0 0 10 0 7 35Total 1,259 1,550 0 255 3,893 3,062 1,679 981 900 2,062 1,144 461 17,246

Instrument Maturity Indicative price

Covered bonds 5 -10 years 0.5% - 1.1%

Senior debt 3-5 years 1.1% - 1.6%

18.715.6

12.19.0

7.9

4.17.5 12.0

2.4

2.0 2.32.4

Jun-13 Dec-13 Jun-14 Dec-14

Fixed income portfolio largely unchanged in size …

Fixed income portfolio evolutionEuros in billion and yield in percentage

Spanish public debt Other

Life insurance portfolio

21.026.6

19.7 19.6

ALCO portfolioEuros in billion and in percentage

The ALCO portfolio contribution is stable

37

Jun-13 Dec-13 Jun-14 Dec-14

ALCO portfolio 26.6 19.7 19.6 21.0

% of total assets 15.6% 12.1% 12.1% 12.9%

Duration (in years)* 3.8 4.8 5.0 5.2

ECB liquidity position 18.0 8.8 5.5 7.2

* Duration adjusted for swaps.

Yield

3.2%

… with increased diversification

ALCO portfolio composition 2014 vs. 2013In percentage

The ALCO portfolio has followed an active strategy and is today more diversified

38

Spanish Gov debt

Spanish agencies

Italian Gov debt

US Gov debt

Other Gov debt

Corporates & Financials

67%

35%

20%

7%

7%13%

8% 7%

18% 18%

Dec-13 Dec-14

39

1. The Spanish economy

2. 2014 take-aways and 2015 themes

3. 2014 Results

4. Commercial activity

5. Liquidity and ALCO portfolio

6. Risk and capital management

Fully loaded 4Q14

Strong capital levels

Common Equity Tier 1 phase-in In percentage

11.5%

40

11.1%11.4%

11.8% 11.7%

1Q14 2Q14 3Q14 4Q14

Leverage ratio fully loaded: 5.1%

Note: CET1 ratio fully loaded and leverage ratio fully loaded do not include any positive value adjustments from the AFS portfolio.

16,021 15,788 15,488 14,948 14,192

8,874 8,841 8,611 8,263 7,747

4Q13 1Q14 2Q14 3Q14 4Q14Total NPLs ex-APS Total NPLs APS

22,99422,825

22,673

22,33521,842

4Q13 1Q14 2Q14 3Q14 4Q14

6,973 7,037 7,185 7,387 7,650

5,506 5,570 5,602 5,823 5,886

4Q13 1Q14 2Q14 3Q14 4Q14

RE assets ex-APS RE assets APS

The stock of NPLs continues the downward trend …NPL evolution Euros in million €756M further reduction of

NPLs, ex-APS, during 4Q14

Total problematic assets, ex-APS decline for the fourth quarter in a row

On-balance sheet RE assets evolution Euros in million

Total problematic assets, ex-APS Euros in million

24,89524,629 24,099

12,479 12,607 12,787

Note: NPLs include contingent risk.

23,211

13,210

21,939

13,536

41

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

Ordinary net entries 388 760 365 -12 -83 -203 -316 -457Change in RE assets 394 1 218 400 64 148 202 263Net entries + Change in RE assets 782 761 583 388 -19 -55 -114 -194

Write-offs 247 305 105 51 265 97 224 298

Re assets and NPL quarterly change 535 456 478 337 -284 - 152 -338 -492

… with improved dynamics in the last quarters, like-for-like

Evolution of NPLs and RE assets. (Excluding reclassified loans and acquisitions unti l 1Q14) Sabadell ex-APS. Euros in million

Total problematic assets ex-APS are reduced by €492M in the third quarter

42

4Q13 1Q14 2Q14 3Q14 4Q14

Real Estate development and/or construction purposes 62.98% 63.12% 62.19% 61.15% 62.01%

Construction purposes non-related to real estate dev. 8.26% 8.32% 8.25% 8.24% 7.99%

Large corporates 6.05% 6.02% 6.01% 6.18% 6.34%

SME and small retailers and self-employed 13.33% 13.31% 13.31% 13.30% 12.80%

Individuals with 1st mortgage guarantee assets 9.86% 9.84% 9.73% 9.19% 9.21%

NPL ratio 13.63% 13.57% 13.35% 12.92% 12.17%

NPL ratio improvement is accelerating …

Evolution of NPL ratios by segment, ex-APSIn percentage

Note: NPL ratio is calculated including contingent risk. 43

4Q14 BS ex-

APSAPS Total

Real estate assets 41.1% 52.3% 46.0%Real estate development loans 31.6% 49.3% 39.9%Total real estate exposure 36.7% 50.8% 43.0%Construction 12.0% 35.0% 13.0%Large Corporates 5.6% 47.0% 7.0%SME and small retailers and self-employed 7.6% 22.5% 8.9%Individuals 2.9% 14.3% 3.4%Rest of loan book 4.7% 22.6% 5.6%

8.8% 41.9% 13.1%Total coverage of total loans and RE assets

… maintaining high coverage levels

Coverage by loan segment and real estate assetsSplit between asset protection scheme and rest. In percentage

Comfortable coverage levels relative to expected lo ss

Coverage Ex-APS

50.3 %Coverage of

NPLs

Total coverage

44

Maintaining good real estate sales results

Solvia sales evolutionEuros in million

13,777 18,501Number of units 16,172

� Solvia has become one of the main servicers of the Spanish market

� SAREB granted Solvia the servicing of a portfolio of 42,000 real estate assets

� In 2014 Solvia has

� Beaten 2014 sales budget

� Reduced discount levels

� Increased number of real estate assets with a selling price above €100,000

45

2,234

3,1202,744

2012 2013 2014

46

Closing remarks

47