Banco Sabadell

Banco Sabadell Chosen by the best in business. And by people like you.

March 2014

Contents 1.

Description, mission and values, milestones

2.

Shareholder & management structure

3.

Financial highlights

4.

A multibrand, multichannel strategy

5.

Branch network

6.

Market position

2

What is Banco Sabadell?

• A privately owned banking group established in 1881

• The fourth largest banking group in Spain by assets

• A focused commercial banking group with a significant franchise in small and medium enterprises and affluent private individuals

• A multibrand, multichannel strategy • 2,343 branches and 17,924 employees

• 6,5 million customers • Main financial data (millions of euros) Total assets: Gross loans to customers: Funds under management: Shareholders’ equity: Net 1Q14 profit:

161.093,9 124.834,3 123.334,8 10.185,87 81,1 3

Mission and corporate values

Mission

Corporate values

To develop a universal banking business across Spain, with a specialised vocation, following a selective process of growth through a client banking model.

• • • • • • • • • •

Desire to serve Proximity Adaptability Professionalism Innovation Prudence Sales orientation Austerity Ethics and social responsibility Teamwork

4

BS Milestones

1881

Established in Sabadell (Barcelona)

1965

Initial geographical expansion

1978

London, first branch of the international network

1988

Sabadell Banca Privada is created

1996

Acquisition of NatWest EspaĂąa: the Solbank project

2000

Acquisition of Banco Herrero

2001

Banco Sabadell is floated on the stock market

2004

Acquisition of Banco AtlĂĄntico

2004

Banco Sabadell joins the IBEX 35

2006

Acquisition of Banco Urquijo

2007

Acquisition of TransAtlantic Bank (Miami) 5

BS Milestones

2008

Zurich, new partner in bancassurance

2009

Acquisition of Mellon United National Bank (Miami)

2010

Sabadell United Bank is born

2010

Acquisition of Banco Guipuzcoano

2011

Acquisition of Lydian Private Bank (Miami)

2012

Acquisition of Banco CAM

2012

Acquisition of Banco BMN's in Catalonia and Arag贸n

2013

Acquisition of Lloyds Banking Group Spain

2013

Acquisition of Banco Gallego

2013

Acquisition of JGB Bank de Miami 6

Leadership in service quality

Banco Sabadell, among the best rated banks in the market

Improve your corporate image and reputation Sector

2013 vs. 2014

7,04 Fourth best bank in the country

2 pos.

6,23

Corporate reputation Among the thirty chief companies in the country

40 pos.

CSR and corporate governance Among the 30 best companies in Spain 13 pos.

Market

Sabadell

Fuente:STIGA: “RCB Análisis de Calidad Objetiva en Redes Comerciales Bancarias (Equos 1T14)”.

Source: Business Monitor of Corporate Reputation (MERCO), 2014 7

Contents 1.

Description, mission and values, milestones

2.

Shareholder & management structure

3.

Financial highlights

4.

A multibrand, multichannel strategy

5.

Branch network

6.

Market position

8

Shareholder structure At 31.03.2014

According to size of holding (% of capital)

Up to 120.000 shares

38,19%

More than 120.000 shares

61,81%

Retail shareholders

53,9%

53,9%

Other data 46,1% Number of shares

Number of shareholders Price (euros)

Institutional investors

4,011,971,704

237,830 2.242

9

Management structure Executive Committee & General Management

Business Areas

Chairman · José Oliu Creus Vice-President · José Javier Echenique Landiribar Managing Director · Jaime Guardiola Romojaro Director · General Manager · José Luís Negro Rodríguez External director · José Permanyer Cunillera General Secretary · María José García Beato General Manager · Miguel Montes Güell General Manager · Tomás Varela Muiña Deputy general manager · Carlos Ventura Santamans Deputy general manager · Fernando Pérez-Hickman

Commercial Banking · Carlos Ventura Santamans SME Banking · Eduardo Currás de Don Pablos Personal Banking · Manuel Tresánchez Montaner Bancassurance · Silvia Ávila Rivero Markets & Private Banking · Ramón de la Riva Reina Invest., Fin. Products & Analysis · Cirus Andreu Cabot Treasury and Capital Markets · Alfonso Ayuso Calle Americas · Fernando Pérez-Hickman Corporate & Wholesale Banking · Enric Rovira Masachs Asset Management · Miguel Montes Güell

Corporate Divisions Finance · Tomás Varela Muiña Operations and Corpo. Development · Miguel Montes Güell Organization & Services · Federico Rodríguez Castillo Human Resources · Javier Vela Hernández Risk Management · Rafael José García Nauffal Financial Holdings · Ignacio Camí Casellas Communication & Institu. Relations · Ramon Rovira Pol Corporate Operations · Joan M. Grumé Sierra Internal Audit · Nuria Lázaro Rubio Legal · Gonzalo Barettino Coloma

Territorial managers Catalonia · Luis Buil Vall Centre · Blanca Montero Corominas Southern Region · Juan Krauel Alonso North-West · Pablo Junceda Moreno Northern Region · Pedro E. Sánchez Sologaistua Eastern · Jaime Matas Vallverdú

10

Contents 1.

Description, mission and values, milestones

2.

Shareholder & management structure

3.

Financial highlights

4.

A multibrand, multichannel strategy

5.

Branch network

6.

Market position

11

1Q Results

1Q13

1Q14

1Q13 vs. 1Q14

Net Interest Income

451,2

530,0

17,5%

Equity Method & Dividends Commissions Trading Income & Forex Other Operating Results Gross Operating Income

-6.3 168.4 292.8 -26.3 879.8

0.0 201.0 946.7 -29.7 1,648.0

------19.3% 223.3% 12.8% 87.3%

Personnel Costs Administrative Costs Depreciations

-260.3 -147.1 -50.4

-298.8 -151.9 -68.0

14.8% 3.2% 34.9%

Pre-provisions Income

422.0

1,129.4

167.6%

Total Provisions & Impairments Gains on sale of assets

-324.9 -2.5

-1,096.5 69.9

237.5% --

94.6 -43.4

102.8 -21.7

8,8% -50,1%

51.1

81.2

58.8%

Profit before taxes Taxes and others Attributable Net Profit

In millions of euros. 2014 includes BMN-Penedès, Lloyds Espaùa and Banco Gallego.

Ratings and solvency ratios

Ratings

DBRS 19.03.2013

Solvency Long term

Short term

A (low)

R-1 (low)

Other

RĂ tio Tier I (%)*

Negative Outlook

10.6 Standard&Poors 15.10.2013

Moody’s 15.1.2014

BB

B

Negative Outlook

Ba2

NP

Financial Strength: -D

1Q13

11.2

1Q14

Calculated in accordance with Basilea II

13

Contents 1.

Description, mission and values, milestones

2.

Shareholder & management structure

3.

Financial highlights

4.

A multibrand, multichannel strategy

5.

Branch network

6.

Market position

Domestic Branch Network

SabadellCAM branches are shown in grey, SabadellHerrero branches in red, SabadellGuipuzcoano branches in deep blue, SabadellGallego brances in pistachio and SabadellSolbank branches in fuchsia.

15

A Multibranding Strategy • Commercial and Corporate Banking • Branches all over Spain (except SabadellCAM, SabadellGuipuzcoano and SabadellHerrero territories) • Commercial and Corporate Banking • Branches in Com. of Valencia and Murcia • Commercial and Corporate Banking • Branches in Basque Country, Navarre and La Rioja • Commercial and Corporate Banking • Branches in Asturias and León • Commercial Banking for European individuals living in Spanish tourist areas • Branches in Mediterranean coastal areas and Spanish islands • Private Banking • Branches all over Spain • Commercial and Corporate Banking • Branches in Galicia 16

Subsidiaries • Banking for individuals active in e-financial markets • ‘Centros Activo’ in Madrid and Barcelona

• 95% Banco Sabadell • Commercial and Corporate Banking • Private Banking • Branches in South Florida • 51% Banco Sabadell · 49% local shareholders • Commercial Banking • Branches in Andorra

•100% Banco Sabadell • Private consumer financing

17

Organizational Structure

Customers

Cross-businesses

Venture Capital

Banks and financial subsidiaries

Commercial Banking

Asset Management

SĂ­nia Renovables

BanSabadell FINCOM

Corporate Banking & Global Operations

Treasury and Capital Markets

Aurica XXI

BancAssurance

SME Banking

Security Trading and Custody

Bidsa

BancSabadell d’Andorra

Investment Banking

Investment Management

Private Banking BS International

18

Banco Sabadell on social networks

19

Contents 1.

Description, mission and values, milestones

2.

Shareholder & management structure

3.

Financial highlights

4.

A multibrand, multichannel strategy

5.

Branch network

6.

Market position

Branches Total network: 2,343 branches

In Spain 2,295

Abroad 48

Spanish Autonomous Communities Andalusia 138 Aragon 40 Asturias 146 Balearic Islands 65 Canary Islands 31 Cantabria 6 Castilla-La Mancha 23 Castilla and Le贸n 64 Catalonia 747 Ceuta and Melilla 2 Com. of Valencia 398 Extremadura 6 Galicia 130 La Rioja 7 Madrid 217 Murcia 149 Navarre 19 Basque Country 107 21

Banco Sabadell in the world

Branches

Affiliates and subsidiaries

Representative offices

1 London

5 Andorra

8 Algiers (Algeria)

2 Miami

6 USA

9 S창o Paulo (Brazil)

3 Paris

7 Portugal

10 Beijing (China)

4 Casablanca

11 Shanghai (China) 12 New York (USA) 13 Dubai (United Arab Emirates) 14 New Delhi (India) 15 Mexico DF (Mexico) 16 Warsaw (Poland) 17 Santo Domingo (Dominican R.)

6 15

12

7

2

4

17

18 Singapore (Singapore)

16 1 3 5 19 8

10 11 13

19 Istanbul (Turkey) 20 Caracas (Venezuela)

14 20 18 9

22

Contents 1.

Description, mission and values, milestones

2.

Shareholder & management structure

3.

Financial highlights

4.

A multibrand, multichannel strategy

5.

Branch network

6.

Market position

Market position 路 1 Total assets Santander BBVA Caixabank Sabadell Popular Bankinter

Loans* 1,168,718 599,135 331,376 161,094 153,672 55,196

Deposits Santander Caixabank BBVA Sabadell Popular Bankinter

Caixabank BBVA Santander Sabadell Popular Bankinter

201,357 184,811 170,542 124,834 109,972 41,950

Mutual Funds 185,211 171,964 156,123 101,538 95,728 28,936

Santander BBVA Caixabank Sabadell Popular Bankinter

111,392 45,542 29,700 12,318 8,590 6,497

In milions of euros *BBVA and Santander represent credit and resources in Spain with no property sector.

24

Market position ¡ 2 Shareholders’ equity

Santander BBVA Caixabank Sabadell Popular Bankinter

Acumulated net profit (1T14) 85,631 45,830 23,711 12,318 8,590 6,497

In milions of euros

1,303 624 152 81 63 60

Employees

Branches in Spain Caixabank Santander BBVA Sabadell Popular Bankinter

Santander BBVA Caixabank Sabadell Popular Bankinter

5,716 4,000 3,231 2,295 1,965 523

Santander BBVA Caixabank Sabadell Popular Bankinter

185,165 109,079 31,687 17,924 15,430 6,015 25

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