EN_Memoria Anual Consolidada 2025

1. Corporate information,

basis of presentation and

other information

1.1. CORPORATE INFORMATION

CaixaBank, S.A. (hereinafter, CaixaBank –to use its

trade name– or the Bank) is a Spanish public limited

company filed with the Companies Registry of

Valencia at volume 10370, folio 1, page V-178351 and

entered on the Special Administrative Register of the

Bank of Spain under number 2100. CaixaBank’s Legal

Entity Identifier (LEI) and Tax Identification Number

(NIF) are 7CUNS5333WID6K7DGFI87 and A08663619,

respectively.

CaixaBank’s shares have been trading on the Madrid,

Barcelona, Valencia and Bilbao stock exchanges, in

their continuous markets, since 1 July 2011. The

registered office and tax address of CaixaBank is

Calle Pintor Sorolla, 2-4 in Valencia (Spain). The

contact numbers for the Shareholder Service line are

902 11 05 82 / +34 935 82 98 03, while the number for

institutional investors and analysts is +34 934 11 75 03.

The Bank’s most relevant corporate milestones

during its period of activity are as follows:

Corporate milestones

Corporate events

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Incorporation of Grupo de Servicios, S.A. for an indefinite period.

Notary: Eduardo Blat Gimeno –

Protocol number: 2.375

12/12/1980

Amendment of the trade name to GDS-Grupo de Servicios, S.A.

Notary: Antonio-Carmelo Agustín Torres –

Protocol number: 5.813

22/12/1983

Adjustment of the articles of association to the then in force

Public Limited Companies Act.

Notary: Ladislao Narváez Acero –

Protocol number: 1.124

01/06/1992

Merger by absorption of CaixaHolding, S.A.U., adopting this

trade name.

Notary: Tomás Giménez Duart –

Protocol number: 4.011

Investee portfolio contribution to CaixaHolding, S.A.U. by

Caixa d’Estalvis i Pensions de Barcelona.

07/2000

01/06/2000

Change of the company name to Criteria CaixaCorp, S.A.

Notary: Tomás Giménez Duart –

Protocol number: 3.511

Conclusion of the Initial Public Offering for the admission to

trading of the shares on the Spanish stock exchanges.

10/2007

02/08/2007

Reorganisation of ”la Caixa” Group: Criteria CaixaCorp, S.A. receives

the ”la Caixa” holding in MicroBank to which the assets and

liabilities comprising the Group's financial activity had previously

been transferred.

Notary: Tomás Giménez Duart –

Protocol number: 2.617

27/06/2011

The General Assembly of ”la Caixa” approves the

transformation into a banking foundation, terminating the

indirect exercise of its activity as a credit institution through

CaixaBank, S.A.

05/2014

Merger by acquisition of ”la Caixa” MicroBank by Criteria

CaixaCorp, S.A. and change of the resulting company name

to that of CaixaBank, S.A.

Notary: Tomás Giménez Duart –

Protocol number: 2.685

30/06/2011

Fulfillment of the conditions imposed by

the European Central Bank for the prudential deconsolidation

of Criteria from CaixaBank and its Group, which becomes the

parent company of the supervisory group.

09/2017

Merger by absorption of Bankia, S.A. into CaixaBank, S.A.

Notary: Alfonso Maldonado Rubio -

Protocol number: 2.929

26/03/2021

CaixaBank's corporate purpose, as set out in Article 2

of the Articles of Association, consists primarily of: (i)

the performance of all manner of activities,

transactions, acts, contracts and services inherent to

the banking business in general, including the

provision of investment and ancillary services and

the performance of insurance agency activities; (ii)

receiving funds from the public in the form of

irregular deposits or other similar formats, to be

applied on its own account to active credit and

microcredit transactions and other investments,

providing customers with services including drawing,

transfer, custody, mediation and others; and (iii) the

acquisition, holding, enjoyment and disposal of all

manner of securities and the formulation of public

offerings for the acquisition and sale of securities, as

well as all manner of holdings in any company or

enterprise.

CaixaBank, S.A. and its subsidiaries comprise

CaixaBank Group (hereinafter “CaixaBank Group” or

the “Group”).

CaixaBank S.A. is the parent company of the financial

conglomerate formed by the Group's entities that

are considered to be regulated, recognising

CaixaBank as a significant supervised entity, whereby

CaixaBank comprises, together with the credit

institutions of its Group, a significant supervised

group of which CaixaBank is the entity at the highest

level of prudential consolidation.

As a listed bank, it is subject to oversight by the

European Central Bank and the National Securities

Market Commission (CNMV); however, the Group

companies are subject to oversight by

supplementary and industry-based bodies.

Since CaixaBank is a Spanish commercial enterprise

structured as a public limited company, it is

therefore subject to the amended text of the Spanish

Capital Companies Law, enacted by Royal Legislative

Decree 1/2010 of 2 July and its implementing

provisions. In addition, since it is a listed company, it

is also governed by Law 6/2023 of 17 March on

Securities Markets and Investment Services and

implementing regulations.

CaixaBank's corporate website is

www.caixabank.com.

1.2. BASIS OF PRESENTATION

The Group’s consolidated financial statements have

been prepared by the directors in accordance with

the regulatory financial reporting framework

applicable to the Group at 31 December 2025, which

is set forth in the International Financial Reporting

Standards adopted by the European Union

(hereinafter, “IFRS-EU”). In preparing these statements,

Bank of Spain Circular 4/2017 of 27 November has

been taken into account, which constitutes the

adaptation of the IFRS-EU to Spanish credit

institutions, and subsequent amendments in force at

the end of the financial year.

The financial statements, which were prepared from

the accounting records of CaixaBank and the

Group's companies, are presented in accordance

with the regulatory financial reporting framework

applicable to them and, in particular, with the

accounting principles and rules contained therein

and, accordingly, present fairly the Group’s equity,

financial position, results and cash flows for the

financial year. The accompanying financial

statements include certain adjustments and

reclassifications required to apply the policies and

criteria used by the Group companies on a

consistent basis with those of CaixaBank.

The figures are presented in millions of euros unless

another monetary unit is stated. Certain financial

information in these notes was rounded off and,

consequently, the figures shown herein as totals may

differ slightly from the arithmetic sum of the

individual figures given before them. Similarly, in

deciding what information to disclose in this report,

its materiality was assessed in relation to the annual

financial data.

STANDARDS AND INTERPRETATIONS

ISSUED BY THE IASB THAT CAME INTO

FORCE IN 2025

At the date of authorisation for issue of these

consolidated financial statements, there are no

standards issued by the IASB and effective as of 1

January 2025 that have had a material impact on

these financial statements.

STANDARDS AND INTERPRETATIONS

ISSUED BY THE IASB BUT NOT YET IN

FORCE

The main standards and interpretations issued by

the IASB but not yet effective, either because their

effective date is subsequent to the date of the

consolidated financial statements or because they

had not yet been endorsed by the European Union,

at the date of authorisation for issue of these

consolidated financial statements are as follows:

_STANDARDS AND INTERPRETATIONS ISSUED BY THE IASB BUT NOT YET IN FORCE


Standards and interpretations	Title	Mandatory application for annual periods beginning on or after:
Amendments to IFRS 7 and IFRS 9	Amendments to the Classification and Measurement of Financial Instruments	1 January 2026
IFRS 18	Presentation and Disclosure in Financial Statements	1 January 2027
IFRS 19	Subsidiaries without Public Accountability: Disclosures	1 January 2027

Amendments to IFRS 7 and IFRS 9 — Amendments to

the Classification and Measurement of Financial

Instruments.

In May 2024, the IASB issued amendments to the

classification and measurement of financial

instruments in responding to comments received in

the post-implementation review of the classification

and measurement requirements of IFRS 9 Financial

Instruments and the related requirements of IFRS 7

Financial Instruments: Disclosures.

The IASB amended requirements relating to:

| the assessment of contractual cash flow

characteristics of financial assets, including

those having characteristics linked to ESG

factors;

| disclosure requirements relating to investments

in equity instruments designated at fair value

through other comprehensive income and for

financial instruments with contingent

characteristics not directly related to the

underlying risks and costs of borrowing; and

| the settlement of financial liabilities through an

electronic payment system.

No significant impacts on the Group are expected as

a result of these amendments.

IFRS 18 — Presentation and Disclosure in Financial

Statements

On 9 April 2024, the IASB published IFRS 18 —

Presentation and Disclosures in Financial Statements,

which aims to establish requirements for the

presentation and disclosure of information in

financial statements to help ensure that they provide

relevant information that fairly represents an entity’s

assets, liabilities, equity, income and expenses. On

February 16, 2026, Commission Regulation (EU)

2026/338 was published, endorsing IFRS 18 in the

European Union.

IFRS 18 brings in three sets of new requirements to

improve companies' disclosures about their financial

performance and provide investors with a better

basis for analysing and comparing companies:

| Improved comparability of the statement of

profit and loss: introduces three defined

categories of income and expenses (operating,

investing and financing) to improve the structure

of the statement of profit or loss, and requires

the provision of new defined subtotals, including

operating profit.

| Increased transparency of performance

measures defined by Management: requires

companies to disclose explanations of

company-specific measurements related to the

statement of profit or loss, called Management-

defined performance measures.

| A more useful grouping of information in the

financial statements: Sets out more detailed

guidance on how to organise the information

and whether it should be provided in the main

financial statements or in the notes.

The Group has begun work on the implementation of

this standard with the redefinition of the statement

of profit or loss.

IFRS 19 — Subsidiaries without Public Accountability:

Disclosures

IFRS 19 enables certain eligible entities to elect to

apply the reduced disclosure requirements of IFRS 19

while continuing to apply the recognition,

measurement and presentation requirements of

other IFRS accounting standards.

The Group has no eligible entities that may fall within

the scope of this standard and therefore there will be

no significant impacts arising from this standard.

1.3. RESPONSIBILITY FOR THE

INFORMATION AND FOR THE

ESTIMATES MADE

The Group's consolidated financial statements for

2025 were authorised for issue by the Board of

Directors at a meeting held on 19 February 2026. They

have not yet been approved by the Annual General

Meeting, while it is expected that they will be

approved without any changes. The 2024 financial

statements were approved by the Annual General

Meeting of Shareholders held on 11 April 2025.

These consolidated financial statements have been

prepared on a going concern basis on the basis of

the solvency (ä see Note 4) and liquidity (ä see Note

3.4.4) of the Group.

The preparation of the consolidated financial

statements required the Board of Directors to make

certain judgements, estimates and assumptions in

order to quantify certain assets, liabilities, revenues,

expenses and obligations shown in them. These

judgments and estimates mainly refer to:

| The measurement of goodwill and intangible

assets (Notes 2.14 and 16).

| The term of the lease agreements used in the

assessment of the lease liabilities (Note 2.16).

| Fair value of assets, liabilities and contingent

liabilities in the context of the purchase price

allocation in business combinations (Note 7).

| Impairment losses on financial assets, and of the

fair value of guarantees associated thereto,

according to their classification in accounts,

which entail the need to make judgments

regarding: (i) the consideration of “significant

increase in credit risk” (SICR); (ii) the definition of

default; and (iii) the incorporation of forward-

looking information and macro-economic

uncertainties – Post Model Adjustment (ä see

Notes 2.7 and 3.4.1).

| The valuation of interests in joint ventures and

associates (Note 13).

| The methodologies and hypotheses used in the

valuation of insurance and reinsurance

contracts, including, inter alia, the determination

of contract limits, hedge units, risk adjustment for

non-financial risks, discount rates and the

investment component (Note 2.19 and Note 14).

| The classification, useful life of and impairment

losses on tangible assets and intangible assets

(Notes 15 and 16).

| Impairment losses on non-current assets and

disposal groups classified as held for sale (Note

18).

| Actuarial assumptions used to measure post-

employment liabilities and commitments (Note

20).

| The valuation of the provisions necessary to

cover labour, legal and tax contingencies (Note

20).

| The corporate income tax expense determined

at the expected tax rate at year-end and the

capitalisation of tax credits and their

recoverability, as well as the recognition of the

tax on net interest and commission income

(IMIC) and the temporary tax in force previously

(Note 22).

| The fair value of certain financial assets and

liabilities (Note 35).

These estimates were made on the basis of the best

information available at the date of authorisation for

issue of the financial statements, considering the

uncertainty at the time arising from the current

economic environment. However, it is possible that

events may occur that make it necessary for them to

be changed in future periods. According to

applicable legislation, the effects of these estimate

changes would be recognised prospectively in the

corresponding statement of profit or loss.

1.4. COMPARISON OF

INFORMATION AND CHANGES

IN SCOPE OF CONSOLIDATION

The figures for the financial year 2024 and 2023,

included in the accompanying annual accounts for

the financial year 2025, are presented for

comparison purposes only. In some cases, in order to

facilitate comparability, the comparative information

is presented in a summarised way, and the full

information is available in the 2024 and 2023

financial statements.

1.5. SEASONALITY OF

TRANSACTIONS

The most significant transactions carried out by the

Group are not significantly seasonal in nature within

any given single financial year.

1.6. OWNERSHIP INTERESTS IN

CREDIT INSTITUTIONS

At the end of the financial year, the Group did not

hold any direct ownership interest equal to or

greater than 5 % of the capital or voting rights in

credit institutions other than the ownership interests

in subsidiaries and associates detailed in

Appendices 1 and 3.

1.7. MINIMUM RESERVE RATIO

During this year, the Bank complied with the

minimum reserve ratio required by applicable

regulations.

1.8. SIGNIFICANT

TRANSACTIONS

No significant transactions occurred during the year

beyond those described in the other notes to these

financial statements.

1.9. SUBSEQUENT EVENTS

The transactions —in addition to those stated in the

rest of the notes— that have taken place between

the close and the date of authorisation for issue are

set out below.

Debt securities issued

Senior bonds

On 20 January 2026, CaixaBank issued 1,250 million

euros of senior non-preferred debt (SNP) with a yield

of 3.921 %, equivalent to midswap + 108 bps and

maturing in January 2037, with an early redemption

option by the issuer in the tenth year.

At the same time, an early buyback offer was

announced for an SNP issuance maturing in June

2026. The amount repurchased totalled 406 million

euros, leaving 844 million euros in nominal amount

outstanding.

2. Accounting policies

The Group sets out the accounting principles, policies and measurement bases applicable to the financial year

2025, in accordance with the disclosure requirements for Accounting Policies, including only those considered

material:

2.1. BASIS OF CONSOLIDATION

In addition to data relating to the parent company,

the consolidated financial statements contain

information on subsidiaries, joint ventures and

associates. The procedure for integrating the assets

and liabilities of these companies depends on the

type of control or influence exercised.

Where the Group creates or holds ownership

interests in entities to provide customers access to

investments or transfer certain risks to third parties, it

analyses whether it has control over the investee

and, therefore, whether it should or should not be

consolidated:

| With regard to securisation funds, the Group is

highly exposed to variable returns and has

decision-making power over the entity, directly

or through an agent. Information on these funds,

the financial support given to the vehicles and

the reason are disclosed in Note 24.2, and they

are treated as consolidated structured entities.

| Special purpose entities in which the Group

participates as sole promoter and which are

incorporated for the purpose of marketing

structured notes to certain customers or for the

transfer of risks are not consolidated, as control

over them is not maintained and the criteria

defined in IFRS 10 — Consolidated Financial

Statements are not met.

| At year-end, there were no agreements to

provide additional financial support to other

types of consolidated structured entities than

those described, and the Group did not have any

significant interests in or provide financial

support to unconsolidated structured entities.

Regarding non-monetary contributions to jointly

controlled entities, the IASB recognised a conflict in

standard between IAS 27, under which on the loss of

control, any investment retained is measured at fair

value and the full gain or loss on the transaction is

recognised in the statement of profit or loss, and

paragraph 48 of IAS 31 and the interpretation SIC 13,

which, for transactions under their scope restrict

gains and losses to the extent of the interest

attributable to the other equity holders of the jointly

controlled entity. The Group has elected to apply, in a

consistent manner, the provisions of IAS 27 to

transactions under the scope of these standards.

When the Group first consolidates an equity-

accounted associate it analyses any differences at

the acquisition date between i) the fair value of the

consideration transferred and ii) the net amount of

the identifiable assets acquired and liabilities

assumed measured at fair value. The amortisation of

intangible assets with a finite useful life identified as

a result of the preparation of a Purchase price

allocation (PPA) for the allocation of the purchase

price paid is charged to “Results of entities

accounted for using the equity method” in the

statement of profit or loss.

When the interest in an associate is reduced to zero,

the Group ceases to recognise further losses, unless

it has legal or constructive obligations or has made

payments on behalf of the associate. The recognition

of positive results, including amounts in other

comprehensive income (OCI), will resume only once

they offset previously unrecognised losses. Likewise,

changes in the ownership interest that do not result

in a loss of significant influence do not give rise to

additional results in the statement of profit or loss,

except for the reclassification of the accumulated

amount in OCI to reserves, where applicable.

Appendices 1, 2 and 3 to these notes to the

consolidated financial statements provide relevant

information on subsidiaries, associates and joint

ventures. The above information is based on the

most recent actual or estimated data available at

the time of preparation of these Notes. The Group

has not used the financial statements of companies

accounted for using the equity method that refer to

a different date than that of the Group's Parent.

2.2. FINANCIAL INSTRUMENTS

CLASSIFICATION OF FINANCIAL ASSETS

The criteria established by the regulatory framework for accounting for classifying financial instruments is set

out below:

Contractual cash flows

Business model

Classification of financial assets (FA)

Payments, solely principal

and interest on the amount

of principal pending at

specified dates (SPPI test)

In order to receive contractual cash flows.

FA at amortised cost.

In order to receive contractual cash flows

and sale.

FA at fair value through other comprehensive

income.

Other – No SPPI test

Derivative instruments designated as

accounting hedging instruments.

Derivatives – Hedge accounting.

They originate from or are acquired with

the aim of realising them in the short term.

FA at fair value

through profit

or loss.

FA held for trading.

They are part of a group of financial

instruments identified and managed

together, for which there is evidence of a

recent pattern of short-term profit-taking.

They are derivative instruments that do

not meet the definition of a financial

guarantee contract and have not been

designated as accounting hedging

instruments.

Others.

FA not designated for

trading compulsorily

measured at fair value

through profit or loss.

Investments in equity instruments are an exception

to the aforementioned general assessment criteria.

In general, the Group irrevocably exercises the option

in the initial recognition by including – in the portfolio

of financial assets at fair value through other

comprehensive income – investments in equity

instruments that are not classified as held for trading

and that, in the event of not exercising this option,

would be classified as financial assets compulsorily

measured at fair value through profit or loss.

With regard to the business model, holding a group

of financial assets on the balance sheet in order to

collect contractual cash flows does not imply that

the Group must hold all instruments in a given

portfolio until maturity. A group of financial

instruments may be deemed to be managed under

this business model even if there have been or are

expected to be future sales of the instruments in this

portfolio, provided that during an observation period

equivalent to the average life of the portfolio

classified at amortised cost these are infrequent or

insignificant.

In particular, the Group considers sales to be

insignificant if, during the stated observation period,

the ratio calculated as the average of the book value

of the instruments sold over the average of the book

value of the total instruments in the portfolio is less

than 5 %.

Where the above thresholds are exceeded, the

average time on the balance sheet will be assessed.

This ratio considers the proximity to maturity of sales

by measuring the proportion of time—out of the total

time to maturity—that a sold instrument or contract

has remained on the balance sheet, weighting each

sale by the net carrying amount of the sale relative

to total sales for the period. The average time-on-

balance-sheet ratio must exceed 95 % in cases

where the frequency or significance ratio is greater

than 5 %.

Aside from infrequent sales, insignificant sales or

sales of assets close to maturity, sales that have

occurred for, among others, any of the following

reasons are also considered to be compatible with

the business model of holding financial assets in

order to collect their contractual cash flows:

| Sales arising from an increase in the credit risk of

the assets or a deterioration in the issuer’s credit

quality, in order to comply with the Group’s

investment policy; or, in particular, the Group’s

expectation of carrying out frequent and

significant sales of loans (or similar financial

assets) that have experienced a deterioration in

credit risk is not inconsistent with the

classification of such loans under the business

model of holding financial assets to collect their

contractual cash flows.

| Sales to manage credit concentration risk.

| Sales for liquidity purposes in stress scenarios.

| Sales imposed by third parties.

Accordingly, sales arising from these scenarios

should not be taken into account in order to

determine the frequency or materiality of sales, and

will be excluded from the monitoring ratios.

With respect to the assessment of whether the cash

flows of an instrument are solely payments of

principal and interest, the Group makes a number of

judgements when assessing such compliance (SPPI

test), the most significant of which are listed below:

| Modified time value of money: in order to assess

whether the interest rate of a particular

transaction incorporates some consideration

other than that linked to the passage of time, the

Group considers factors such as the currency in

which the financial asset is denominated and

the term for which the interest rate is

established. In particular, the Group performs a

regular analysis for transactions that present a

difference between the holding period and the

review frequency, whereby they are compared

with another instrument that does not present

such differences within a tolerance threshold.

| Exposure to risks inconsistent with a basic

lending arrangement: an assessment is

conducted on whether the contractual features

of financial assets introduce exposure to risks or

volatility in the contractual cash flows unrelated

to a basic lending arrangement, such as

exposure to changes in equity or commodity

prices, in which case they would not be

considered to pass the SPPI test.

| Clauses that amend the schedule or amounts of

cash flows: the Group considers the existence of

contractual conditions in virtue of which the

timing or amount of the contractual flows of the

financial asset can be modified. This applies to:

(i) assets whose contractual terms allow for the

full or partial early repayment of principal; (ii)

assets whose contractual terms allow their

maturity to be extended; or (iii) assets for which

interest payments may vary as a function of a

non-financial variable specified in the contract.

In these instances, the Bank evaluates whether

the contractual cash flows that the instrument

may generate over its life due to this contractual

condition are solely payments of principal and

interest on the principal amount outstanding

and may include a reasonable additional

compensation in the event of an early

termination of the contract.

| Leverage: financial assets with leverage, i.e. those

in which the variability of the contractual flows

increases such that they do not have the

economic characteristics of interest, cannot be

considered financial assets that pass the SPPI

test (e.g. derivative instruments such as simple

option contracts).

| Subordination and loss of the right to receive

payment: the Group evaluates any contractual

clauses that may result in a loss of rights to

receive payment of principal and interest on the

principal amount outstanding.

| Currency: in analysing whether the contractual

cash flows are solely payments of principal and

interest on the principal amount outstanding, the

Group takes into consideration the currency in

which the financial asset is denominated in

order to assess the characteristics of the

contractual flows, for instance by assessing the

component corresponding to the time value of

money based on the benchmark used for setting

the financial asset's interest rate.

| Contractually linked instruments: a look-through

analysis is conducted, based on which the cash

flows arising from this type of asset are

considered to consist solely of payments of

principal and interest on the outstanding

principal if:

| the contractual terms of the tranche being

assessed for classification (without looking

through the underlying pool of financial

instruments) give rise to cash flows that are

solely payments of principal and interest on

the principal amount outstanding (e.g. the

interest rate of the tranche not linked to a

commodity index);

| the underlying pool of financial instruments

comprises one or more instruments with

contractual cash flows that are solely

payments of principal and interest on the

principal amount outstanding; and

| the exposure to the credit risk inherent in the

tranche is equal to or lower than the

exposure to the credit risk of the underlying

pool of financial instruments (for example,

the credit rating of the tranche being

assessed for classification is equal to or

higher than the credit rating that would

apply to a single tranche comprising the

underlying pool of financial instruments).

Therefore, if the rating of the tranche is equal

to or greater than that of the vehicle, this

condition will be considered to have been

met.

The underlying group of instruments referred

to in the previous section could also include

instruments that reduce the variability of the

flows of that group of instruments such that,

when they are combined with these

instruments, they generate flows that are

solely payments of principal and interest on

the principal amount outstanding (e.g. an

interest rate ceiling or floor option or a

contract that reduces the credit risk

associated with the instruments). It could

also include instruments that allow the flows

from the tranches to be aligned with the

flows from the group of underlying

instruments in order to settle exclusively the

differences in the interest rate, the currency

in which the flows are denominated

(including inflation) and the timing of cash

flows.

| Financial instruments issued in structured

transactions that form tranches with a

seniority that creates concentrations of

credit risk that involve granting credit

enhancements to a creditor (or group of

creditors) need not necessarily meet the

three requirements set out in this paragraph

in order to conclude that the contractual

flows are solely payments of principal and

interest (e.g. asset-backed securities).

| Assets without personal liability (non-recourse):

the fact that a particular financial asset does not

have any personal liability associated with it

does not necessarily mean it must be

considered a Non-SPPI financial asset. In these

situations, the Group assesses the underlying

assets or cash flows to determine whether they

consist solely of payments of principal and

interest on the principal amount outstanding,

regardless of the nature of the underlying assets

in question.

In particular, in the case of financing

transactions for projects that are repaid

exclusively with the incomes from the projects

being financed, the Group analyses whether the

cash flows that are contractually determined to

be principal and interest payments do indeed

represent the payment of principal and interest

on the principal amount outstanding.

When an entity’s ultimate right to receive cash

flows is contractually limited to the cash flows

generated by specific assets, the entity is

primarily exposed to the performance risk of

those specific assets rather than to the credit risk

of the debtor and, therefore, this type of financial

asset would not pass the SPPI test (the cash

flows are not consistent with the condition of

being solely payments of principal and interest).

| Negative compensation (symmetrical clauses):

certain instruments incorporate a contractual

clause whereby, if the principal amount

outstanding is either fully or partially repaid early,

the party that chooses to end the contract early

—whether it is the debtor or the creditor— is able

to receive fair additional compensation despite

being the party choosing to end the contract

early. This is the case, for instance, of so-called

symmetrical clauses found in certain fixed-rate

financing instruments. These clauses stipulate

that when the creditor executes the option to

make a repayment in advance, there must be

compensation for the early termination of the

contract, and this compensation will be in either

the debtor's or the creditor's favour depending

on how interest rates have fluctuated between

the initial grant date and the date on which the

contract is terminated early.

The fact that a financial instrument incorporates

this contract term, known as negative

compensation, does not necessarily mean that

the instrument in question must be considered

Non-SPPI. A financial instrument that would in any

case have met the conditions to be considered

SPPI compliant, save for the fact that it

incorporates reasonable additional

compensation for early termination of the

contract (to be received or paid by the party

that decides to terminate the contract early), will

be eligible to be measured at amortised cost or

at fair value through other comprehensive

income, as determined by the business model.

| Contingent event occurrence: A contingent

feature could give rise to contractual cash flows

that are consistent with a basic borrowing

arrangement both before and after the change

in contractual cash flows, but the nature of the

contingent event itself does not relate directly to

changes in the risks and costs of borrowing (e.g.

when the interest rate on a loan is adjusted by a

specified amount for the achievement of ESG

objectives).

In such a case, the financial asset has

contractual cash flows that are solely payments

of principal and interest on the principal

outstanding if, and only if, under all possible

scenarios, the contractual cash flows would not

be significantly different from the contractual

cash flows in a financial instrument with identical

contractual terms but without such a contingent

feature.

An entity may, in some circumstances, be able to

make that determination by making a qualitative

assessment; but, in other circumstances, a

quantitative assessment may be necessary.

When it is clear, from little or no analysis, that the

contractual cash flows are not materially

different, an entity does not need to perform a

detailed assessment.

The Group periodically performs an analysis

which consists of determining how many basis

points of bonus can be applied to the interest

rate of a loan when a contingent event occurs

(as a rule, meeting ESG objectives), so that the

difference between the cash flows before and

after the occurrence of the contingent event

does not differ by more than 5 %.

The result of this analysis is sent, among others,

to the parties involved in the formalisation and

pricing of this type of transaction so that under

no circumstances may bonuses exceeding the

established limit be granted.

In cases in which a characteristic of a financial asset

is not consistent with a basic loan agreement, i.e. if

there are characteristics of the asset that lead to

contractual cash flows other than payments of

principal and interests on the outstanding principal,

the Group will assess the significance to determine

whether such a characteristic should be taken into

consideration for the SPPI Test.

With respect to the materiality of a characteristic of

a financial asset, the assessment performed by the

Group involves estimating the impact it could have

on the contractual flows. This is determined by

considering the possible effect of the nature of the

contractual undiscounted cash flows in each

reporting period and the cumulative effect over the

life of the financial instrument. The impact of an

element is considered to be insignificant and,

therefore, not accounted for in the assessment of

the SPPI test when it results in a change in expected

cash flows of less than 5 %.

If the characteristic of an instrument could have a

significant impact on the contractual flows but that

characteristic affects the contractual flows of the

instrument solely if an event occurs that is

considered to be extremely exceptional, highly

anomalous and highly unlikely, the Group will not

take that characteristic or element into

consideration when assessing whether the

contractual cash flows from the instrument are

solely payments of principal and interest on the

principal amount outstanding.

CLASSIFICATION OF FINANCIAL LIABILITIES

Financial liabilities are classified under: “Financial

liabilities held for trading”, “Financial liabilities

designated at fair value through profit or loss” and

“Financial liabilities measured at amortised cost”,

unless they must be presented under “Liabilities

included in disposal groups classified as held for

sale” or relate to “Fair value changes of the hedged

items in portfolio hedge of interest rate risk” or

“Derivatives – Hedge accounting”, which are

presented separately.

Particularly, the portfolio “Financial liabilities at

amortised cost”: includes financial liabilities not

classified as financial liabilities held for trading or as

other financial liabilities at fair value through profit or

loss. The balances recognised in this category,

irrespective of the substances of the contractual

arrangement and maturity of such liabilities, arise

from the ordinary capture activities of credit

institutions.

INITIAL RECOGNITION AND MEASUREMENT

Upon initial recognition, all financial instruments are

recognised at fair value. For the financial instruments

that are not registered at fair value through profit or

loss, the fair value amount is adjusted, adding or

deducting transaction costs directly attributable to

the acquisition or issuance thereof. In the case of

financial instruments at fair value through profit or

loss, the directly attributable transaction costs are

immediately recognised in the statement of profit or

loss.

The transaction costs are defined as expenses

directly attributable to the acquisition or drawdown

of a financial asset, or to the issuance or assumption

of a financial liability, which would not have been

incurred if the Group had not made the transaction.

These include fees paid to intermediaries (such as

prescribers); mortgage arrangement expenses

borne by the Group and part of the personnel

expenses in the Risk Acceptance Centres. Internal

administrative expenses, or expenses derived from

previous studies and analyses, are never considered

as transaction costs.

The Group uses analytical accounting tools to

identify direct and incremental transaction costs of

asset transactions. These costs are included in

determining the effective interest rate, which is

reduced for financial assets, thus, the costs are

accrued throughout the duration of the transaction.

SUBSEQUENT MEASUREMENT OF THE

FINANCIAL ASSETS

After its initial recognition, the Group measures the

financial asset at amortised cost, at fair value with

changes recognised in other comprehensive

income, or at fair value with changes recognised in

profit or loss.

Trade receivables that do not have a significant

financing component and trade receivables and

short-term debt instruments initially measured at

transaction price or principal amount, respectively,

continue to be measured at that amount less the

estimated impairment loss, as described in Note 2.7.

With regard to the conventional purchases and sales

of fixed income and equity instruments, these are

generally recorded at the settlement date.

INCOME AND EXPENSES ON FINANCIAL ASSETS AND LIABILITIES

Income and expenses on financial instruments are recognised according to the following criteria:

Portfolio

Recognition of income and expense

Financial

assets

amortised

cost

Accrued interest: recorded in the statement of profit or loss using the effective interest rate

of the transaction on the gross carrying amount of the transaction (except in the case of

non-performing assets, where it is applied to the net carrying amount).

Other changes in value: income or expense when the financial instrument is derecognised

from the balance sheet, reclassified or when losses occur due to impairment or gains are

produced by its subsequent recovery.

Measured

at fair value

through

profit or loss

Changes in fair value: fair value changes are recorded directly in the statement of profit or

loss, and a differentiation is made —for non-derivative instruments— between the part

attributable to the returns earned by the instrument, which will be recorded as interest or

as dividends according to its nature, and the rest, which will be recorded as profit/(loss) of

financial transactions in the corresponding balance item.

Accrued interest: on these debt instruments, calculated using the effective interest method.

At fair value

through

other

comprehen

sive income

(*)

Interests or dividends accrued, in the statement of profit or loss. For interest, the same as

assets at amortised cost.

The differences in a change in the statement of profit or loss in the case of monetary

financial assets, and in other comprehensive income, in the case of non-monetary

financial assets.

For the case of debt instruments, impairment losses or gains due to their subsequent

recovery in the statement of profit or loss.

All other changes in value are recognised in other comprehensive income.

Financial

liabilities

amortised

cost

Accrued interest: recorded in the statement of profit or loss using the effective interest rate

of the transaction on the gross carrying amount of the transaction, except in the case of

Tier 1 issuances, in which the discretionary coupons are recognised in reserves.

Other changes in value: income or expense when the financial instrument is derecognised

from the balance sheet or reclassified.

Measured

at fair value

through

profit or loss

Changes in fair value: changes in the value of a financial liability designated at fair value

through profit or loss, in the case of applying in the following manner:

a. The amount of the change in the fair value of the financial liability attributable to

changes in that liability's own credit risk is recognised in other comprehensive income,

which would be transferred directly to an item in reserves if the financial liability were

derecognised; and

b. The remaining amount of the change in the fair value of the liability is recognised in

profit or loss.

Accrued interest: on these debt instruments, calculated using the effective interest method.

(*) Thus, when a debt instrument is measured at fair value through other comprehensive income, the amounts that would be recognised in the profit or loss for

the year will be the same as those that would be recognised if it were measured at amortised cost.

When a debt instrument at fair value through other comprehensive income is derecognised from the balance sheet, the profit or loss accumulated in equity is

reclassified, and recorded in the statement of profit or loss for the period. In turn, when an equity instrument at fair value through other comprehensive income is

derecognised from the balance sheet, the amount of the loss or gain recorded in other accumulated comprehensive income is not reclassified to the statement

of profit or loss, but instead to a reserve balance item.

For each of the aforementioned portfolios, the recognition would change if said instruments form part of a hedging relationship (ä see Note 2.3 ).

The effective interest rate is the rate that discounts

future cash payments or charges estimated during

the expected life of the financial asset or liability with

respect to the gross carrying amount of a financial

asset or the amortised cost of a financial liability. To

calculate the effective interest rate, the Group

estimates the expected cash flows, taking into

account all the contractual terms of the financial

instrument, but without considering expected credit

loss. The calculation includes all fee and commission

income and interest basis points, whether paid or

received by the parties to the contract, which make

up the effective interest rate, transaction costs and

any other premium or discount. In cases where the

cash flows or remaining life of a financial instrument

cannot be reliably estimated (e.g. prepayments), the

Group uses the contractual cash flows of the

financial instrument.

In the case of financial instruments with variable

remuneration and contingent upon the fulfilment of

certain future events, other than loans originated

and deposits and issues made, the accounting

criteria applied by the Group if there is a subsequent

change in the estimate of the remuneration arising

from a change in the expectation as to the fulfilment

of the future contingency is based on a recalculation

of the amortised cost of the transaction and

recording the effect of such restatement in the

statement of profit or loss.

RECLASSIFICATIONS BETWEEN FINANCIAL

INSTRUMENT PORTFOLIOS

Only in the event that the Group decides to change

its financial asset management business model

would it reclassify all affected financial assets in

accordance with the requirements of IFRS 9. This

reclassification would be carried out prospectively

as of the reclassification date. In accordance with

the IFRS 9 approach, in general, changes in the

business model occur very infrequently. Financial

liabilities cannot be reclassified between portfolios.

2.3. ACCOUNTING HEDGES

The Group uses financial derivatives as a financial

risk management tool, mainly interest rate risk in the

banking book ( ä see Note 3.4.3). When these

transactions meet certain requirements, they qualify

for hedge accounting.

When a transaction is designated as a hedge, this is

done at inception of the transaction or of the

instruments included in the hedge and a technical

note of the transaction is documented in

accordance with the regulations in force, which

includes verification of effectiveness requirements.

The documentation relating to hedging transactions

clearly identifies the instrument or instruments being

hedged and the instrument or instruments used for

hedging, as well as the nature of the risk being

hedged and how the Group assesses whether the

hedging relationship meets the requirements for

hedging effectiveness (along with its analysis of the

causes of hedging ineffectiveness and how the

hedging ratio is determined).

FAIR VALUE HEDGES

Fair value hedges hedge the exposure to changes in

fair value of financial assets and liabilities or

unrecognised firm commitments, or an identified

portion of such assets, liabilities or firm

commitments, that is attributable to a particular risk

and could affect the statement of profit or loss.

In fair value hedges, the gains or losses on the

hedging instrument or on the hedged item for the

portion attributable to the hedged risk are

recognised in an asymmetrical way according to

whether the hedged item is a debt instrument or an

equity instrument:

| Debt instruments: In fair value hedges, the gains

or losses on the hedging instrument or on the

hedged item for the portion attributable to the

hedged risk are recognised in the statement of

profit or loss, in the “Gains/(losses) from hedge

accounting, net” section. In particular, in fair

value macro-hedges, gains or losses arising on

the hedged items have their equivalent entry

under “Assets – Fair value changes of the

hedged items in portfolio hedge of interest rate

risk” or “Liabilities – Fair value changes of the

hedged items in portfolio hedge of interest rate

risk”, depending on the substance of the hedged

item, rather than in the items under which the

hedged items are recognised.

| Equity instruments: gains or losses on the

hedging instrument or on the hedged item for

the portion attributable to the hedged risk are

recognised under “Accumulated other

comprehensive income – Items that will not be

reclassified to profit or loss – Ineffectiveness of

fair value hedges of equity instruments

measured at fair value through other

comprehensive income” in the balance sheet.

When hedging derivatives no longer meet the

requirements for hedge accounting, they are

reclassified as trading derivatives. The amount of the

previously registered adjustments to the hedged

item is attributed as follows:

| Debt instruments: they are recognised in the

heading “Gains/(losses) from hedge accounting,

net” of the statement of profit or loss using the

effective interest rate method at the date hedge

accounting is discontinued.

| Equity instruments: are reclassified to reserves

under the heading “Accumulated other

comprehensive income – Items that will not be

reclassified to profit or loss – Ineffectiveness of

fair value hedges of equity instruments

measured at fair value through other

comprehensive income” in the balance sheet.

In addition, the Group carries out fair value micro-

hedges of a net position to neutralise the impact on

economic value caused by changes in interest rates

on the net position of the liabilities associated with

the commitments with policyholders (specifically the

BEL associated with each of the identified risk

groups) and the portfolios of financial assets

arranged to meet these commitments. Therefore, in

this type of hedge, the hedged item corresponds to

the changes in fair value experienced by the net

position due to the interest rate risk effect, and the

hedging instrument corresponds to a derivative

(which is normally a swap that transforms the fixed

rate of the investment portfolio into a fixed rate that

matches the payment schedule of the liabilities for

insurance commitments). This ensures that the

market value of the investments assigned to the

insurance transaction is equal to or greater than the

present value of the flows corresponding to the

obligations arising from the insurance contracts and

that the sensitivity of the present values of assets

and liabilities to changes in interest rates is

equivalent. Therefore, by applying hedge accounting,

the entry generated by the change in fair value due

to the effect of the interest rate risk of the net

position, which in this particular case is recognised

under OCI, will be recycled to the statement of profit

or loss and will therefore offset the entry generated

under ROF for the changes in fair value due to

interest rate risk experienced by the hedging

derivative.

CASH FLOW HEDGES

Cash flow hedges hedge exposure to variability in

cash flows that is attributable to a particular risk

associated with a recognised financial asset or

liability or with a highly probable forecast transaction

and could affect the statement of profit or loss.

The amount adjusted on the hedging item is

recognised in “Accumulated other comprehensive

income – Items that may be reclassified to profit or

loss – Hedging derivatives. Reserve of cash flow

hedges [effective portion]”, where they will remain

until the forecast transaction occurs, at which point it

will be recognised in “Gains/(losses) from hedge

accounting, net” of the statement of profit or loss, in

symmetry with the forecast cash flow. However, if the

transaction is not expected to be carried out, it will

be recognised immediately in the statement of profit

or loss. The hedged items are recognised in

accordance with the criteria explained in Note 2.2,

without any modification due to the fact of being

considered hedged instruments.

2.4. OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES

The following is a breakdown of financial assets and liabilities that have been offset in the consolidated

balance sheet:


_OFFSETTING OF ASSETS AND LIABILITIES
(Millions of euros)
		31-12-2025			31-12-2024			31-12-2023
		Gross amount (A)	Offset amount (B)	Net amount (C=A-B)	Gross amount (A)	Offset amount (B)	Net amount (C=A-B)	Gross amount (A)	Offset amount (B)	Net amount (C=A-B)
ASSETS
FA held for trading – derivatives		19,438	15,060	4,378	20,934	16,068	4,867	23,237	16,893	6,344
FA at amortised cost – Loans and advances		401,126	10,954	390,172	381,352	14,603	366,749	367,513	11,248	356,265
	Of which: Collateral	4,015	4,015		4,695	4,695		5,826	5,826
	Of which: Reverse repurchase agreement *	6,573	6,573		9,599	9,599		5,236	5,236
	Of which: Tax leases	366	366		309	309		185	185
Derivatives – Hedge accounting		3,214	1,837	1,377	2,795	2,263	531	3,459	2,253	1,206
LIABILITIES
FL held for trading		21,617	18,791	2,826	23,414	19,993	3,420	22,969	20,780	2,189
FL at amortised cost		533,693	7,301	526,391	509,194	10,374	498,820	486,299	5,849	480,450
	Of which: Other financial liabilities	362	362		466	466		428	428
	Of which: Repurchase agreement	6,573	6,573		9,599	9,599		5,236	5,236
	Of which: Tax leases	366	366		309	309		185	185
Derivatives – Hedge accounting		5,733	1,734	3,999	7,274	2,566	4,709	11,439	3,762	7,677
FA: Financial assets; FL: Financial liabilities
(*) Collateral swap transactions by means of repos, with separate cancellation not permitted. They are generally carried out at 12 months.

2.5. DERECOGNITION OF FINANCIAL INSTRUMENTS

All or part of a financial asset is derecognised when

the contractual rights to the cash flows from the

financial asset expire or when the entity transfers the

asset to an unrelated third party.

The accounting treatment of transfers of financial

assets depends on the extent to which the risks and

rewards associated with ownership of the

transferred assets are transferred to third parties:

| If all the risks and rewards of ownership of the

transferred asset are substantially transferred

(such as in the case of, among others:

unconditional sales, a sale with an option to

repurchase the financial asset at its fair value at

the time of repurchase, a sale of a financial asset

together with a put or call option that is deep out

of the money, or asset securitisations in which

the transferor does not retain any subordinated

loans and does not provide any type of credit

enhancement to the new owners), it is

derecognised, and any rights or obligations

retained or arising as a result of the transfer are

simultaneously recognised.

| If the risks and rewards of ownership of the

transferred financial asset are substantially

retained (such as in the case of, among others:

sale and repurchase transactions where the

repurchase price is a fixed price or the sale price

plus a lender’s return, a securities lending

agreement under which the borrower has the

obligation to return the securities or similar), it is

not derecognised and continues to be

measured by the same criteria used before the

transfer and the following are recognised:

| A financial liability equal to the consideration

received, which is subsequently measured at

amortised cost, unless it meets the

requirements to be classified under other

liabilities at fair value through profit or loss;

and

| The income generated on the transferred

(but not derecognised) financial asset and

the expenses of the new financial liability,

without offsetting.

| If substantially all the risks and rewards of

ownership of the transferred financial asset are

neither transferred nor retained (such as in the

case of, among others, a sale of a financial asset

together with a put or call option that is neither

deep-in-the-money nor deep-out-of-the-

money, securitisations in which the transferor

assumes a subordinated loan or other type of

credit enhancement for part of the transferred

asset), the following distinction is made:

| If the transferor does not retain control over

the financial asset transferred, it is

derecognised and any right or obligation

retained or arising from the transfer is

recognised; or

| If the transferor retains control over the

financial asset transferred, it continues to

recognise the asset for an amount equal to

its exposure to changes in value of the asset,

recognising a liability associated with the

financial asset transferred. The net amount

of the transferred asset and the associated

liability shall be the amortised cost of the

rights and obligations retained, if the asset is

measured at amortised cost, or at fair value

of the rights and obligations retained, if the

transferred asset is measured at fair value.

According to the terms of the assignment contracts,

the vast majority of the credit investment portfolio

securitised by the Group does not meet the

requirements for derecognition from the balance

sheet.

Financial liabilities shall equally be derecognised

when the obligation specified in the contract is

discharged or cancelled or expires.

2.6. FINANCIAL GUARANTEES

FINANCIAL GUARANTEES GIVEN

Financial guarantees are considered to be contracts

that require the issuer to make specific payments to

reimburse the creditor for the debt incurred when a

specific debtor fails to meet its contractual payment

obligations, regardless of the form in which the

obligation is instrumented, whether it be a bond

(including those for participation in auctions and

tenders), financial and technical guarantees,

irrevocable formalised guarantee promises,

insurance contracts or credit derivatives.

Financial guarantees comprise all manner of

deposits that directly or indirectly guarantee debt

securities such as loans, credit facilities, finance

leases and deferred payment arrangements for all

types of debt.

All these transactions are recognised under the

memorandum item “Guarantees given” in the

balance sheet.

Financial guarantee and guarantee contract

portfolios, regardless of the guarantor,

instrumentation or other circumstances, are

reviewed periodically so as to determine the credit

risk to which they are exposed and, if appropriate,

estimate any provision required. In this process,

criteria similar to those established for quantifying

impairment losses on debt instruments measured at

amortised cost are applied, as discussed in Note 2.7

below, except in the case of technical guarantees, to

which the criteria contained in Note 2.17 are applied.

Provisions set aside for this type of arrangement are

recognised under “Provisions – Commitments and

guarantees given” on the liability side of the balance

sheet, and under “Provisions – Other provisions”; as

regards the latter, if the financial guarantees given

are classified as written-off transactions pending

execution by third parties. Additions to and reversals

of provisions are recognised in “Provisions or reversal

of provisions” in the statement of profit or loss.

Should it become necessary to establish provisions

for these financial guarantees, any fees that may

accrue on these transactions in future which would

be recognised in “Financial liabilities at amortised

cost – Other financial liabilities” are reclassified to

“Provisions – Commitments and guarantees given”.

FINANCIAL GUARANTEES RECEIVED

The Group has received no significant guarantees or

collateral with regard to which there is authorisation

to sell or pledge without default by the owner of the

guarantee or collateral, except for those inherent to

treasury activities (ä see Note 3.4.4).

The Group recognises as financial guarantees

received those credit insurance contracts whereby

the issuer merely reimburses the amounts relating to

the losses incurred when a specific debtor fails to

honour its payment obligation at maturity, in

accordance with the original or amended terms of a

debt instrument.

2.7. IMPAIRMENT OF FINANCIAL ASSETS

The Group applies the requirements on impairment

of debt instruments that are measured at amortised

cost and at fair value through other comprehensive

income, as well as other exposures that involve credit

risk, such as loan commitments given, financial

guarantees given and other commitments given.

The objective of the impairment requirements of the

accounting framework is to recognise expected

credit losses from transactions, assessed on a

collective or individual basis, taking into account all

available reasonable and supportable information,

including forward-looking information. In certain

cases, when certain circumstances have not been

included in the latest recalibration of the credit risk

models or these circumstances are very uncertain or

volatile, the estimation of their impact is recognised

as a Post Model Adjustment (PMA) in the provisioning

funds, which will be revised in the future based on the

new information available and its incorporation into

the credit risk models, avoiding in any case a

duplication in the quantification of these impacts.

Impairment losses on debt instruments in the period

are recognised as an expense under the heading

“Impairment or reversal of impairment losses on

financial assets not measured at fair value through

profit or loss or net profit or loss due to a change” in

the statement of profit or loss. The impairment losses

of debt instruments at amortised cost are

recognised against a corrective account of

provisions that reduces the carrying amount of the

asset, whereas those of instruments at fair value

through other comprehensive income are

recognised against accumulated other

comprehensive income.

Coverage of impairment losses in exposures

involving credit risk other than debt instruments are

recognised as a provision under the heading

“Provisions – Commitments and guarantees given”

on the liabilities side of the balance sheet. Additions

to and reversals of this coverage are charged to the

heading “Provisions or reversal of provisions” in the

statement of profit or loss.

For the purpose of recording coverage of

impairment losses on debt instruments, the following

definitions should be taken into account in advance:

| Credit losses: these correspond to the difference

between all the contractual cash flows owed to

the Group in accordance with the financial

asset's contract and all the cash flows that it is

due to receive (i.e. all the insufficiency of cash

flows), discounted at the original effective

interest rate or, for financial assets that were

purchased with or that originated with credit

impairment, discounted at the effective interest

rate adjusted to reflect credit quality, or the

interest rate on the date referred to in the

financial statements in the case of a variable

rate.

In the case of the loan commitments given, the

contractual cash flows that would be owed to

the Group in the event the loan commitment

were drawn down are compared to the cash

flows that it would expect to receive if the

commitment were drawn down. In the case of

granted financial guarantees, the payments that

the Group expects to receive are taken into

account, less the cash flows that are expected to

be received from the guaranteed holder.

The Group estimates the cash flows of the

transaction during its expected life taking into

account all the contractual terms and conditions

of the transaction (such as early repayment,

extension, redemption and other similar options).

In extreme cases when it is not possible to

reliably estimate the expected life of the

transaction, the Group uses the remaining

contractual term of the transaction, including

extension options.

The cash flows taken into account include those

deriving from the sale of collateral, taking into

account the cash flows that would be obtained

from the sale thereof, less the amount of the

costs required to obtain them, maintenance and

their subsequent sale, or other credit

improvements that form an integral part of the

contractual conditions, such as financial

guarantees received. In addition, the Bank also

takes into account any eventual income from

the sale of financial instruments when

measuring the expected loss.

If the Group's current non-performing asset

reduction strategy expects loan sales and other

accounts receivable whose credit risk has

increased (exposure classified at Stage 3), then

the Group will retain any asset affected by this

strategy under the model for retaining assets to

receive their contractual cash flows, thus they

are measured and classified in the portfolio of

“Financial assets at amortised cost”, provided

that their flows only include payments of

principal and interest. Similarly, until they no

longer intend to make sales, the corresponding

credit risk provision takes into account the price

to be received from a third party.

| Expected credit losses: these are the weighted

average of the credit losses, using as weighting

the respective risks of default events. The

following distinction will be taken into account:

| Expected credit losses during the life of the

transaction: these are expected credit losses

resulting from all the possible default events

during the expected life of the transaction.

| Expected credit losses at twelve months:

these are the part of the credit losses

expected during the life of the transaction

corresponding to the expected credit losses

resulting from any default events during the

twelve months following the reference date.

The amount of the provisions to cover impairment

loss is calculated according to whether there has

been a significant increase in credit risk since the

transaction's initial recognition, and whether a

default event has occurred:

Observed impairment of credit risk since its initial recognition

Credit risk

similar items

Interest income, interest expense and similar items

Recognised on an accrual basis, using the

effective interest method, regardless of

when the resulting monetary or financial

flow arises, as previously described.

Dividends received

As income at the moment when the right

to receive them arises, which is the

moment of the official announcement of

the dividend payment by the appropriate

body of the company.

Fees and

commissions

received/paid*

Credit fees

They are an

integral part of

the yield or

effective cost

of a financing

transaction.

They are

collected in

advance.

Fees and commissions received for

the arrangement or acquisition of

financing transactions that are not

measured at fair value through profit

or loss (i.e.: remuneration for

activities involving the evaluation of

the borrower’s financial position, the

evaluation and registration of

guarantees, the negotiation of

transaction conditions, the

preparation and processing of

documentation and the closing of

the transaction).

They are deferred and recognised over the

life of the transaction as an adjustment to

the effective yield or cost of the

transaction.

Fees agreed as compensation for

the commitment to provide funding

when such a commitment is not

measured at fair value through

profit or loss and it is probable that

the Group will enter into a specific

loan agreement.

They are deferred by recognising them

over the life of the transaction as an

adjustment to the return or effective cost

of the transaction. If the commitment

expires and the company has not

extended the loan, the fee is recognised as

income at the time of expiry.

Fees paid on the issue of financial

liabilities measured at amortised

cost.

They are included together with the

related direct costs incurred in the

carrying amount of the financial liability as

an adjustment to the effective cost of the

transaction.

Non-credit

fees

These derive

from the

provision of

financial

services other

than financing

transactions.

Related to the execution of a service

provided over time (i.e.: fees and

commissions for account

management and those received in

advance of the issue or renewal of

credit cards).

They are recorded over time, measuring

progress towards complete fulfilment of

the performance obligation.

Related to the provision of a service

that is executed at a specific point in

time (i.e.: Securities underwriting,

currency exchange, advice or

syndication of loans).

They are recorded in the statement of

profit or loss at the time of collection.

(*) Exceptions: Fees for the financial instruments that are measured by their fair value through profit or loss and the non-availability fee (in transactions where

drawing down funds is optional for the credit holder) are immediately recognised in the statement of profit or loss.

The accrued fees deriving from typical products or services of the financial activity are presented separate to those deriving from products and services that do

not correspond to typical activity, which are presented under the heading “Other operating income” in the statement of profit or loss.

Characteristics

Recognition

Other non-

financial

income and

expenses

Other income from ordinary activities

As a general criterion, they are recognised

inasmuch as the assets and services

contractually agreed are provided. The

amount of the payment to which the

Group expects to have a right in exchange

for these goods or services, is recognised

as income, during the life of the contract.

If it receives or has a right to receive a

payment and the goods or services have

not been transferred, the Group recognises

a liability, which remains on the balance

sheet until it is allocated to the statement

of profit or loss.

The Group may transfer control over time

or at a specific point in time.

With respect to the accounting for contract-related

costs, contract procurement costs are costs incurred

by the Group to obtain a contract with a customer

that would not have been incurred if the Group had

not entered into the contract.

The Group capitalises all incremental costs of

obtaining and/or fulfilling a contract whenever the

costs are directly related to a contract or an

expected contract that the entity can specifically

identify. In this regard, it is assessed whether the

costs generate or enhance the Bank's resources that

will be used to meet (or continue to meet)

performance obligations in the future and whether

those costs are expected to be recovered.

The Group attributes these capitalised costs to the

statement of profit or loss based on the term of the

framework agreement or the transactions that give

rise to the costs and additionally, at least on a half-

yearly basis, conducts an impairment test to assess

to what degree the future profits generated by these

contracts bear the capitalised costs. In the event

that the costs exceeded the current value of the

future profits, these assets would be impaired by the

appropriate proportion.

In relation to fees, levies, and similar charges, the

Group determines the event that gives rise to the

obligation to pay, taking into consideration the

legislation in force. The event leading to tax liability

can happen either throughout the current period or

at a specific moment, and it is consistently

documented in the financial records. Preparing

financial statements assuming the business will

continue does not mean the Bank currently owes

taxes that would only become due in future periods

due to ongoing transactions.

2.11. EMPLOYEE BENEFITS

Employee benefits include all forms of consideration

given in exchange for services rendered to the Group

by employees or for benefits payable after

completion of employment. They can be classified

into the following categories:

SHORT-TERM EMPLOYEE BENEFITS

These are employee benefits (other than termination

benefits) which fall due wholly within 12 months after

the end of the period in which the employees render

the related service. It includes wages, salaries and

social security contributions; paid annual leave and

paid sick leave; profit-sharing and bonuses; and

non-monetary benefits payable to employees such

as medical care, housing, cars and free or subsidised

goods or services.

The cost of the services rendered is recognised

under the heading “Administrative expenses –

Personnel expenses” in the statement of profit or loss,

except for part of the personnel expenses pertaining

to the Risk Admission Centres, which are presented

as a reduction of the financial margin of the

transactions to which they relate, and certain

incentives paid to branch network staff for the

marketing and sale of products, which are also

presented as a reduction of the financial margin.

In addition, certain personnel expenses are

considered to be directly attributable to insurance

contracts and are presented under the heading

“Insurance service result”.

Credit facilities made available to employees at

below market rates are considered to be non-

monetary benefits and are calculated as the

difference between market rates and the rates

agreed with employees. The difference is recognised

under “Administrative expenses – Personnel

expenses” with a balancing entry under “Interest

income” in the statement of profit or loss.

REMUNERATION TO EMPLOYEES BASED

ON EQUITY INSTRUMENTS

The delivery of shareholder equity instruments to

employees as payment for their services —when

such a delivery is made upon completion of a

specific period of services— is recognised as a

services expense, insomuch as it is provided by

employees, with a balancing entry under the

heading “Shareholders’ Equity – Other equity items”.

On the date granting, these services (and the

corresponding equity increase) will be measured at

the fair value of the services received, unless it

cannot be reliably estimated, in which case they will

be measured indirectly with reference to the fair

value of the granted equity instruments. The fair

value of these equity instruments will be determined

on the date they are granted.

When external market conditions are established —

among the requirements laid down in the

remuneration agreement—, their performance will be

taken into account when estimating the fair value of

the granted equity instruments. In turn, variables that

are not considered market variables are not taken

into account when calculating the fair value of

granted equity instruments, but they are considered

when determining the number of instruments to be

delivered. Both effects will be recognised in the

statement of profit or loss and in the corresponding

increase in equity.

In the case of share-based payment transactions

that are cash-settled, an expense with a balancing

entry will be recorded on the liabilities side of the

balance sheet. Up to the date on which the liability is

settled, this liability will be measured at its fair value,

recognising value changes in the profit/(loss) for the

period.

As an exception to the provision of the previous

paragraph, share-based payment transactions that

have a net-settlement feature to satisfy tax

withholding obligations will be classified in their

entirety as share-based payment transactions

settled through equity instruments if, in the absence

of the net-settlement feature, they have been

classified as such.

POST-EMPLOYMENT BENEFITS

Post-employment benefits are all those undertaken

with employees, to be paid after completion of their

employment with the Group. They include: retirement

benefits, such as pensions and one-off retirement

payments; and other post-employment benefits,

such as post-employment life insurance and post-

employment medical care, at the end of the

employment relationship.

DEFINED CONTRIBUTION PLANS

The post-employment obligations with employees

are deemed to be defined contribution obligations

when the Group makes pre-determined

contributions to a separate entity or pension fund

and has no legal or constructive obligation to make

further contributions if the separate entity or fund

cannot pay the employee benefits relating to the

service rendered in the current and prior periods.

Defined contribution plans each year are recognised

under “Administrative expenses – Personnel

expenses” in the statement of profit or loss. Post-

employment obligations that do not meet the

aforementioned conditions are considered defined

benefit obligations.

DEFINED BENEFIT PLANS

The present value of defined benefit post-

employment obligations, net of the value of plan

assets, is recorded under “Provisions – Pensions and

other post-employment defined benefit obligations”

in the balance sheet.

Plan assets are defined as follows:

| The assets held by a long-term employee benefit

fund, and

| Qualifying insurance policies; those issued by an

insurer that it is not a related part of the Group.

In the case of the assets held by a benefit fund, they

must be assets:

| Held by a fund that is legally separate from the

Group and exists solely to pay or finance

employee benefits, or

| They are solely available to pay or finance post-

employment remuneration, they are not

available to cover the debts of Group creditors

(not even in the event of bankruptcy), and they

cannot be returned to the Group unless: i) the

remaining assets of the plan are sufficient to

meet all the related employee benefit

obligations of the plan or CaixaBank; or ii) they

are used to reimburse it for post-employment

benefits the Group has already paid to

employees.

In the case of insurance policies, the defined benefit

commitments assured through policies taken out

with the entities that are not considered related

parties also meet the requirements to be considered

plan assets.

The value both of the assets held by a pension fund,

as well as qualifying insurance policies is recognised

as a decrease in the value of the liabilities under

“Provisions – Pensions and other post-employment

defined benefit obligations”. When the value of plan

assets is greater than the value of the obligations,

the net positive difference is recognised under “Other

assets”.

The assets and liabilities of subsidiaries, which

comprise the insurance contract liabilities of policies

taken out directly by CaixaBank, are included on

consolidation of the subsidiary. Accordingly, in the

consolidation process the heading “Liabilities under

insurance contracts” is reduced, and the investments

in the financial instruments backing those policies

are recognised instead.

Post-employment benefits are recognised as follows:

| Service cost is recognised in the statement of

profit or loss and includes the following:

| Current service cost, understood as the

increase in the present value of obligations

arising from employee service in the current

period, recognised under “Administrative

expenses – Personnel expenses”.

| Past service cost, resulting from

amendments to existing post-employment

benefits or the introduction of new benefits,

and the cost of curtailments, recognised

under “Provisions or reversal of provisions”.

| Any gain or loss arising on settlement of a

plan is recognised in “Provisions or reversal of

provisions”.

| The net interest on the net defined benefit post-

employment benefit liability/(asset), understood

to be the change during the period in the net

defined benefit liability/(asset) that arises from

the passage of time, is recognised in “Interest

expense”, or “Interest income” if it results in

income, in the statement of profit or loss.

| Remeasurements of the net liability/(asset) for

defined benefit post-employment benefits are

recognised in “Accumulated other

comprehensive income” in the balance sheet.

Includes:

| Actuarial gains and losses arising in the

period from differences between the

previous actuarial assumptions and what

has actually occurred and from changes in

the actuarial assumptions used.

| The return on plan assets, excluding the

amounts included in the net interest on the

liability/(asset) for defined benefit post-

employment benefits.

| Any change in the impact of the asset

ceiling, excluding the amounts included in

the net interest on the liability/(asset) for

defined benefit post-employment benefits.

OTHER LONG-TERM EMPLOYEE BENEFITS

Other long term employee benefits, understood as

obligations with pre-retired employees (those who

have ceased rendering services but who, without

being legally retired, continue to enjoy economic

rights vis-à-vis the Bank until they acquire the status

of legally retired), long-service bonuses and similar

items, are treated for accounting purposes, where

applicable, as established for defined benefit post-

employment plans, except that the actuarial gains

and losses are recognised in “Provisions or reversal of

provisions” in the statement of profit or loss.

TERMINATION BENEFITS

These benefits are payable as a result of the Group’s

decision to terminate an employee’s employment

before the normal retirement date, a valid

expectation raised in the employee or an employee’s

decision to accept voluntary redundancy in

exchange for those benefits.

A liability and an expense for termination benefits are

recognised when there is no realistic possibility of

withdrawing the offer to pay the termination benefits

or when the costs for restructuring, which involves

the payment of termination benefits, are recognised.

These amounts are recognised as a provision under

“Provisions – Other long-term employee benefits” in

the balance sheet until they are settled.

In the case of payments of over 12 months, the same

treatment is applied as for the other long-term

employee benefits.

2.12. INCOME TAX

Income tax expense is considered to be a current

expense and is recognised in the statement of profit

or loss, except when it results from a transaction

recognised directly in equity, in which case the

corresponding tax effect is recognised in equity.

Income tax expense is calculated as the sum of the

current tax for the year resulting from applying the

tax rate to the taxable profit for the year and any

changes in deferred tax assets and liabilities

recognised in the year in the statement of profit or

loss, less any allowable tax deductions.

Temporary differences, tax loss carryforwards

pending offset and unused tax deductions are

recognised as deferred tax assets and/or deferred

tax liabilities. The amounts are recognised at the tax

rates that are expected to apply when the asset is

realised or the liability is settled.

Tax assets are recognised under “Tax assets” in the

balance sheet as current, for amounts to be

recovered in the next 12 months, or deferred, for

amounts to be recovered in future reporting periods.

Similarly, tax liabilities are recognised in “Tax liabilities”

in the balance sheet, also by current and deferred.

Current tax liabilities include the amount of tax

payable within the next 12 months and deferred tax

liabilities as the amount expected to be paid in future

periods.

Deferred tax liabilities arising from temporary

differences related to investments in subsidiaries,

associates or joint ventures are not recognised when

the Group is able to control the timing of the reversal

of the temporary difference and, in addition, it is

probable that the temporary difference will not

reverse.

Deferred tax assets are only recognised when it is

probable that they will be reversed in the

foreseeable future and it is estimated that there is

sufficient taxable profit against which they can be

used.

The expense for the tax on net interest income and

fee and commission income applies to certain

financial institutions operating in Spain and is

calculated by applying a progressive scale from 1 %

to 7 % to the positive balance resulting from the

aggregation and netting of net interest income and

fee and commission income and expenses arising

from activities carried out in Spain as reported in the

statement of profit or loss, reduced by 100 million

euros, and by reducing the gross tax liability by 25 %

of the net liability for Corporate Income Tax for the

same tax period.

2.13. TANGIBLE ASSETS

PROPERTY, PLANT AND EQUIPMENT FOR

OWN USE

They include the amount of property, land, furniture,

vehicles, IT equipment and other facilities owned or

acquired under a lease, as well as assets leased out

under an operating lease.

Property, plant and equipment for own use includes

assets held by the Group for present or future

administrative uses or for the production or supply of

goods and services that are expected to be used

over more than one financial period.

INVESTMENT PROPERTY

It reflects the carrying amounts of land, buildings and

other constructions —including those received by the

Bank for the total or partial settlement of financial

assets that represent collection rights vis-à-vis third

parties— owned to obtain rental income or gains

through sale.

Tangible assets are generally stated at acquisition

cost less accumulated depreciation and any

impairment losses determined by comparing the

carrying amount of each item to its recoverable

amount.

Depreciation is calculated using the straight-line

method on the basis of the acquisition cost of the

assets less their net carrying value. Land is not

depreciated since it is considered to have an

indefinite life.

The depreciation charge is recognised with a

balancing entry under “Depreciation and

amortisation” in the statement of profit or loss and is

calculated essentially using the depreciation rates

set out in the table below, which are based on the

years of estimated useful life of the various assets.


USEFUL LIFE OF TANGIBLE ASSETS
(Years)
		Estimated useful life
Constructions
	Building	16 - 50
	Installations	8 - 25
Furniture and fixtures		4 - 50
Electronic equipment		3 - 8
Other		7 - 14

At the end of each reporting period, the Group

assesses tangible assets for any indications that

their net carrying amount exceeds their recoverable

amount, understood as fair value less costs to sell

and value in use.

Any impairment loss determined is recognised with a

charge to “Impairment/(reversal) of impairment on

non-financial assets – Tangible assets” in the

statement of profit or loss and a reduction to the

carrying amount of the asset to its recoverable

amount. After the recognition of an impairment loss,

the depreciation charges for the asset in future

periods are adjusted in proportion to its revised

carrying amount and remaining useful life.

Similarly, when there are indications of a recovery in

the value of the assets, a reversal of the impairment

loss recorded in prior periods is recognised and the

depreciation charge for the asset in future periods is

adjusted. In no circumstances may the reversal of an

impairment loss on an asset raise its carrying

amount above that which it would have if no

impairment losses had been recognised in prior

years.

Likewise, the estimated useful lives of tangible assets

are reviewed each year or whenever indications are

noted which make it advisable to do so and, where

appropriate, the depreciation charges are adjusted

in the statement of profit or loss of future years.

Upkeep and maintenance expenses are recognised

under “Administrative expenses – Other

administrative expenses” in the statement of profit or

loss, when they are incurred.

2.14. INTANGIBLE ASSETS

Intangible assets are identifiable non-monetary

assets without physical substance acquired from

third parties or developed internally.

GOODWILL

Goodwill represents the payment made by the

acquirer in anticipation of future economic benefits

from assets that are not capable of being

individually identified and separately recognised.

Goodwill is recognised only when business

combinations are carried out for valuable

consideration.

In business combinations, goodwill arises as the

positive difference between:

| the consideration transferred plus, as

appropriate, the fair value of any previously-held

equity interest in the acquiree and the amount of

non-controlling interests; and

| the net fair value of the identifiable assets

acquired less the liabilities assumed.

Goodwill is recognised in “Intangible assets –

Goodwill” and is not amortised.

At the end of each reporting period or whenever

there are indications of impairment, an estimate is

made of any impairment that reduces the

recoverable amount to below its recorded net cost

and, where there is impairment, the goodwill is

written down with a balancing entry in “Impairment/

(reversal) of impairment on non-financial assets –

Intangible assets” in the statement of profit or loss.

Impairment losses recognised for goodwill are not

reversed in a subsequent period.

OTHER INTANGIBLE ASSETS

This includes the amount of other identifiable

intangible assets, such as assets arising in business

combinations and software.

Expenses incurred during the research phase are

recognised directly in the statement of profit or loss

for the period in which they are incurred, and cannot

subsequently be capitalised.

Other intangible assets have an indefinite useful life

when, based on an analysis of all the relevant

factors, it is concluded that there is no foreseeable

limit to the period over which the asset is expected

to generate net cash inflows for the Group, and a

finite useful life in all other cases.

Intangible assets with indefinite useful lives are not

amortised. However, at the end of each reporting

period, or whenever there is any indication of

impairment, the remaining useful lives of the assets

are reviewed in order to determine whether they

continue to be indefinite and, if this is not the case, to

take the appropriate steps.

Intangible assets with a finite useful life are

amortised over the useful life, applying policies

similar to those followed for the depreciation of

tangible assets.

Any impairment losses on assets with either

indefinite or finite useful lives are recognised with a

balancing entry in “Impairment/(reversal) of

impairment on non-financial assets – Intangible

assets” in the statement of profit or loss. The policies

for recognising impairment losses on these assets

and for reversing impairment losses recognised in

prior years are similar to those for tangible assets.

Virtually all computer software (software) recorded

under this heading on the balance sheet has been

developed by third parties and is amortised over a

useful life of between four and 15 years.

2.15. ASSETS AND LIABILITIES HELD FOR SALE

Real estate or other non-current assets received as

total or partial settlement of debtors’ payment

obligations in credit transactions are recognised

under “Non-current assets and disposal groups

classified as held for sale” unless it has been decided

to make continuing use of the assets.

The Group has centralised the ownership of the

majority of its real estate assets acquired or

foreclosed in payment of debts in its subsidiaries

BuildingCenter, SAU, and Livingcenter Activos

Inmobiliarios, SAU, with a view to optimising

management.

Non-current assets classified as held for sale are

generally measured initially at the lower of the

carrying amount of the financial assets and their fair

value less costs to sell the asset to be foreclosed

(based on the market value given in complete

individual ECO appraisals at the time of award or

acceptance).

Internal valuation models are used to calculate the

adjustment to be applied to this market value in

order to estimate the discount on the reference price

and the costs to sell. These in-house models factor in

prior sales experience for similar assets in terms of

price and volume.

In line with the procedure followed in the initial

recognition process, the Group also applies,

subsequently, an adjustment, based on the internal

models, to the main valuation.

Loan books transferred to a third party that, at the

time of contract signing, do not meet the

derecognition criteria set by the standard because

of certain clauses expected to be resolved soon, will

be reclassified as non-current assets held for sale.

These portfolios will be reclassified as non-current

assets held for sale at their transaction value and will

be removed from the balance sheet once the

contract is completed.

2.16. LEASES

Lease transactions in which the Group acts as lessee

involve the recognition of a lease liability (at the

present value of future payments) and a right-of-use

asset for the same amount at the commencement

date, which may also include payments made on or

before the commencement date, direct start-up,

decommissioning or rehabilitation costs.

As an exception to the above, the Group recognises

as expenses the lease payments for short-term

leases (understood as those that have a term of 12

months or less at the start date) and leases in which

the leased asset is of low value (<6,000 euros).

The discount rate used is the interest rate that the

lessee would have to pay to borrow, with a similar

term and collateral, the funds required to obtain an

asset of similar value to the right-of-use asset in a

similar economic environment, referred to as the

“additional financing rate”.

This additional financing rate has been calculated by

taking as a reference the debt instruments issued

(covered bonds and senior debt) weighted

according to their respective issuance capacity. The

Group uses a specific rate according to the term of

the transaction and the business (Spain or Portugal)

where the agreements are formalised.

The term of these lease contracts is determined

according to the type of property (Store branch,

rural, etc.), the existing contractual clauses, which

may include renewal options, early cancellation and

commitments acquired by the Bank (for example,

branches subject to agreements with Competition).

2.17. PROVISIONS AND CONTINGENT LIABILITIES

The financial statements include all material

provisions for which it is considered more likely than

not that the obligation will have to be settled at the

reporting date. Provisions are recognised on the

liability side of the balance sheet in accordance with

the obligations covered.

Provisions, which are quantified based on the best

information available on the consequences of the

event giving rise to them and are re-estimated at

the end of each reporting period, are used for

specific expenditures for which the provision was

originally recognised. Provisions are fully or partially

reversed when the obligations cease to exist or are

reduced.

The policy with respect to tax contingencies is to

provision for tax assessments initiated by the tax

authorities in relation to the main taxes applicable to

it as well as for legal proceedings in progress

whenever they have an estimated probability of loss

exceeding 50 %.

When there are present obligations but they are not

likely to give rise to an outflow of resources, they are

recorded as contingent liabilities. Contingent

liabilities may develop in a way not initially expected.

Therefore, they are assessed continually to

determine whether an outflow of resources

embodying economic benefits has become

probable. If it becomes more probable than not that

an outflow of future economic benefits will be

required, a provision is recognised in the balance

sheet.

Provisions are recognised under “Provisions” on the

liability side of the balance sheet in accordance with

the obligations covered. Contingent liabilities are

recognised under memorandum items in the

balance sheet.

2.18. TREASURY SHARES

Own equity instruments are recorded at acquisition

cost as a reduction of equity under “Shareholders’

equity - Treasury shares” in the balance sheet. Gains

or losses that may arise as a result of subsequent

disposal or redemption are recognised directly in

equity, without any gain or loss being recognised.

2.19. INSURANCE TRANSACTIONS

The chapter “Reinsurance contract assets” and

“Insurance contract liabilities” include the rights and

obligations, respectively, arising from the insurance

activity provided by the Group, according to the

following characteristics:

ASSETS UNDER REINSURANCE CONTRACT

The heading “Reinsurance contract assets” in the

balance sheet includes the combination of rights

and obligations arising from a group of reinsurance

contracts. Where such a combination for a group of

contracts presents a liability position, it shall be

presented under the heading “Liabilities under

reinsurance contracts”.

INSURANCE CONTRACT LIABILITIES

DEFINITION AND CLASSIFICATION

The Group assesses whether its contracts fulfil the

definition of an insurance contract, i.e. whether it

accepts a significant insurance risk from another

party by agreeing to compensate the policyholder

should an uncertain future event occur that

adversely affects the policyholder.

The Group defines contracts with significant

insurance risk as those where, under a commercial

scenario, losses exceed the premiums paid or the

liabilities associated with insurance contracts, based

on the contractual definition of additional capital in

the event of a covered claim.

The assessment of significant insurance risk is

conducted at the individual contract level,

considering primarily life-related risks (mortality/

survivorship) and, when applicable, supplementary

risks like disability, double capital, severe illness, etc.

Once a contract is categorized as an insurance

contract, it retains that classification going forward.

Consequently, this evaluation is conducted only

once if a contract is deemed to carry significant

insurance risk.

On the basis of this evaluation, it is concluded that all

insurance contracts previously falling within the

scope of IFRS 4 meet the definition of an insurance

contract and therefore the introduction of IFRS 17

does not suppose any reclassification, apart from

certain BPI Vida e Pensões products without

significant insurance risk (Unit-Linked products

without additional death benefit) which are therefore

valued in accordance with IFRS 9.

UNIT OF ACCOUNT

The Group has analysed the criteria for grouping

insurance contracts by taking into consideration

whether they are contracts subject to similar risks

and are managed jointly, onerousness and whether

they are contracts that are not more than one year

apart in terms of issue (annual cohorts).

This analysis has concluded that the product groups

currently used in Solvency II are adequate.

The Group uses different valuation methodologies for

insurance contracts based on the risk group to

which they belong:


Risk Group	Methodology for measuring provisioning
RISK
Multi-year risk	BBA: Building block approach (General model)
Temporary Annual Rolling Risk	PAA: Premium allocation approach
SAVINGS
Previous Individual Savings - Matching	BBA: Building block approach (General model)
Individual Subsequent Savings - Matching
Individual Subsequent Savings - Volatility
Collective Savings - Matching
Collective Savings - Volatility
DIRECT INTEREST
Unit Linked	VFA: Variable fee approach

Since the Group has chosen the fair value transition

approach, for contracts issued prior to the transition

date (1 January 2022) it has not been necessary to

aggregate the contracts by previous cohorts.

For contracts issued after the transition date, the

grouping has been done by year, except for

insurance contracts managed under Matching

Adjustment techniques and Unit-Linked contracts, for

which the Group has applied the exemption under

Article 2 of Regulation (EU) 2023/1803.

RECOGNITION AND DERECOGNITION OF

ACCOUNTS

Groups of insurance contracts are initially

recognised when the first of the following events

occurs:

| The start of the hedging period of the group of

contracts.

| The date on which the first payment is due from

a policyholder of a group policy.

| For a group of contracts of an onerous nature,

the date on which the group becomes a group

of onerous contracts.

Insurance contracts acquired in a business

combination within the scope of IFRS 3 will be

accounted for as if they were concluded at the

acquisition date.

In general, the Group uses the general model for

recognising and measuring insurance contracts.

Unit-linked and similar contracts are the only ones

that fulfil the definition of insurance contracts with

direct participation features and the variable fee

approach is used for their valuation. The Group's

Unit-Linked contracts have assigned investment

baskets that constitute the underlying financial

assets of these insurance policies, so that all market

movements, net of the management fee, are shared

with the policyholder, and this definition is met.

Whereas for the rest of the Group's insurance

products, it is not expected that holders will be paid a

substantial share of their market profitability or that a

change in the underlying financial assets will have a

direct and significant impact on the valuation of

insurance contracts.

Furthermore, for contracts with a hedging period of

under one year, the Group uses the premium-

allocation approach. This is also applied when the

Group expects that the use of this simplified

approach will yield a measurement that does not

significantly differ from that which would be

produced by applying the general method or VFA.

An insurance contract will be terminated when: (i) it

expires; or (ii) it is amended and fulfils the

requirements of the termination rule.

MEASUREMENT

Initial recognition

For contract groups not measured under the

premium-allocation approach, upon initial

recognition the Group measures them for the total

of:

Future cash flows (FCPF), which include:

| Estimates of future cash flows within the limits of

the contract. The Group estimates the present

value of future cash outflows less the present

value of future cash inflows which fall within the

limits of the contract. These estimates are based

upon the expected value of a full range of

possible outcomes, grounded in the Group's

perspective (but consistent with observable

market prices for the inputs used) and reflect

conditions existing at the measurement date.

These flows include expenses directly

attributable to insurance contracts. At the Group

level, these expenses include insurance contract

marketing expenses, amounting to

approximately the marketing commissions for

insurance contracts between Group companies.

Expenses that the Group has deemed not to be

directly attributable are classified by nature.

Cash flows fall within the limits of the insurance

contract if the Group can require the

policyholder to pay the premiums or if the Group

has a substantive obligation to provide services

under the insurance contract to the policyholder.

This obligation ends when the Group has the

practical ability to reassess the policyholder's

risks and, therefore, set a price or level of services

that reflects those risks. In general, the limit of the

contract is determined as the end date of the

contract, which for renewal contracts is the time

at which the Group can re-evaluate risks, and for

lifetime products as the date of death of the

insured.

Within cash flows, investment components will

be identified, representing amounts payable

irrespective of whether the insured event occurs.

Where identified, this component will equate to

either: (i) the accumulated fund; (ii) the policy’s

mathematical provision; or (iii) the lesser of the

death benefit or the surrender value of the

policy’s mathematical provision.

| An adjustment to reflect the time value of money

and the financial risks associated with future

cash flows. In general, the Group applies a top-

down approach to discount rates, so that the

asset rate is taken as a reference and the credit

risk is discounted. The reference asset is different

depending on the type of product. In the case of

savings products with flow matching, the

interpolated Euro-swap curve is applied plus a

spread based on the portfolio of reference

assets adjusted for the probability of default. In

the case of savings products with revisable

interest rates, the 12-month Euribor curve plus the

portfolio credit spread is applied. In the case of

contracts valued under the variable rate model

and risk products, the discount rate is

established based on a bottom-up approach,

that is, the interpolated Euro-swap curve is

applied without any credit spread adjustment.

| A risk adjustment for non-financial risk (RA). This

reflects the offsetting the Group requires for

bearing the uncertainty about the amount and

timing of cash flows arising from non-financial

risk. The Group uses the Capital Cost

methodology, which was refined during the 2024

financial year. The derivation methodology

applied in the 2023 financial year used a single

set of capital cost factors based on Solvency II

capital requirements (which used only current

discount rates). The improvement introduced

consists of the derivation of two capital cost

parameters based on the original discount rates

(locked-in rates) and market rates (current

rates). This dual approach allows for the

adequate capture of market movements when

measuring the Risk Adjustment at market value.

This reduces the volatility of provisions and

allows for a better adjustment of the calculation

of liabilities under the IFRS17 framework, as well as

for the adequate impact of the updated Risk

Adjustment on the CSM (with capital costs

calculated at original locked-in rates). Due to the

actuarial nature of the CSM and the Risk

Adjustment, both share the same release

methodology. Given the actuarial characteristics

of both the CSM and Risk Adjustment, they follow

the same release methodology. This similarity in

recognition between the CSM and the Risk

Adjustment means that changes in the Risk

Adjustment methodology do not significant alter

the expected future results recorded in the

financial statements. For the year 2025, the

calculated Risk Adjustment corresponds to a

confidence level of approximately 87 %.

| The contractual service margin (CSM) represents

the future profits of the insurance contracts

issued. This amount is not recognised in the

statement of profit or loss at initial recognition,

but is recognised when the services under the

contract are rendered. When this margin is

negative, the insurance contract is onerous and

the loss must be immediately recognised in the

statement of profit or loss, without the

contractual service margin being recognised in

the balance sheet.

The Group applies the premium-allocation approach

for contracts which have a hedge period of one year

or less, or where this approach is expected to result

in a measurement of the remaining hedge liability

that does not materially differ from that which would

be produced by applying the general model.

At initial recognition the Group measures the

remaining hedging liability as the premiums received

plus/minus any amount resulting from derecognising

assets/liabilities previously recognised for the cash

flows related to the group of contracts. For these

contracts, profit is implicit in calculating the

insurance liability, therefore, there is no CSM

accounted for separately.

For these contracts, the Group has chosen the

accounting policy option to recognise the cash flows

from the purchase of the insurance as expenses

when incurred.

Subsequent recognition

The carrying amount of a group of insurance

contracts at the close of each reporting period will

be the sum of:

| The remaining hedging liability, which comprises

the cash flows derived from the performance of

future services allocated to the group at that

date and the group's contractual service margin

at that date.

| The liability for claims incurred, which comprises

the cash flows arising from the performance of

past services assigned to the group at that date.

Changes in cash flows related to present or past

services are recognised in the statement of profit or

loss; whereas those related to future services adjust

the CSM or loss component.

Concerning changes in cash flows linked to present

or past services, those associated with claims settled

during the financial year, either occurring in the

same period or earlier, are identified accordingly.

Conversely, changes in cash flows related to future

services involve adjustments to the projections of

future cash flows for liabilities from remaining

coverage. These adjustments are due to differences

between expected and actual experience or

updates in actuarial and technical assumptions

used in projecting expected flows (and financial

assumptions for products evaluated under the

variable fee approach).

For contracts measured under the variable rate

model the amounts related to future service that

adjust the CSM include changes in the amount of the

Group's interest in the fair value of the underlying

items.

Changes resulting from measuring cash flows at

current rates are recognised under “Finance

expenses from insurance contracts issued” in Other

Comprehensive Income, as the Group has opted for

this accounting policy to reduce discrepancies with

the financial asset accounting records. For contracts

priced under the variable tariff model these amounts

adjust the CSM.

The transfer of insurance contract services in the

period is recognised as insurance income in profit or

loss. This amount is determined by the hedge units,

i.e. the amount of insurance contract services

provided under the contracts during the expected

period of coverage. The Group has determined as

measures the change in mathematical provisions for

savings products and the change in net payment

flows from the effect of mathematical provisions for

risk products.

For insurance contracts in which the premium-

allocation approach is applied, at the close of each

period the carrying amount of a group of contracts

is the sum of the liability for the remaining hedge

and the liability for claims incurred. The remaining

hedge liability is the result of the opening balance

plus premiums received for the period less the

amount recognised as insurance income for

services provided in that period.

The Group does not adjust the remaining hedge

liability for the time value of money because

insurance premiums expire within the coverage

period of the contracts, which is one year or less. The

liability for claims incurred is measured in a similar

way to the general model.

INCOME AND EXPENSES FROM

INSURANCE CONTRACTS

Income and expenses from reinsurance contracts

held are presented as a single amount and

separately from income and expenses from

insurance contracts written under the heading “Net

result from reinsurance contracts held”.

Income and expenses from insurance contracts are

recognised using the following criteria:

Heading

Recognition

Includes income from ordinary insurance activities that show the provision of services

associated with the group of insurance contracts for an amount that reflects the

compensation the bank expects to receive in exchange for said services.

Includes the expenses of the service, which include the claims paid (excluding investment

components) and other insurance service expenses, the amortisation of acquisition cash

flows, changes in the flows related with past services, and changes related with the current

service.

Income from the

insurance service

The insurance revenue or expenses include the group's book value of insurance contracts

that result from the effect of the time value of money and the changes in this value, and

from the financial risk effect and changes to this effect.

The Group has opted for the accounting policy of recognising the impact of changes in

discount rates and other financial variables in “Other comprehensive income” to minimise

accounting asymmetries with the recognition of financial assets.

For contracts valued using the premium assignment approach, the discount rate will not be

used since the cash flows are expected to be charged and paid in one year.

The Group disaggregates changes in the risk adjustment due to non-financial risk into

income from the insurance service, and income or expenses from insurance financing.

Financial income

and expenses from

insurance

2.20. STATEMENTS OF CASH FLOWS

The following terms are used in the presentation of

the statement of cash flows:

| Cash and equivalents: cash balances at central

banks and other demand deposits: this includes

coins and notes held by the Bank and balances

on demand deposited with central banks and

credit institutions.

| Cash flows: inflows and outflows of cash and

cash equivalents, which are short-term, highly

liquid investments that are subject to an

insignificant risk of changes in value.

| Operating activities: the indirect method is used

to present cash flows from operating activities,

which are the principal revenue-producing

activities of credit institutions and other activities

that are not investing or financing activities.

| Investing activities: the acquisition, sale or other

disposal of long-term assets, such as equity

investments, strategic investments, and other

investments not included in cash and cash

equivalents.

| Financing activities: activities that result in

changes in the size and composition of equity

and liabilities that do not form part of operating

activities, such as subordinated financial

liabilities. The issues placed on the institutional

market are classified as financing activities,

whereas the issues placed on the retail market

among our customers are classified as

operating activities.

2.21. STATEMENTS OF CHANGES IN EQUITY

STATEMENT OF RECOGNISED INCOME

AND EXPENSES

This statement presents the income and expenses

recognised as a result of the Group’s activity in the

period, with a distinction between those taken to

profit or loss in the statement of profit or loss and

other comprehensive income directly in equity.

STATEMENT OF CHANGES IN EQUITY

This statement presents all changes in the Group’s

consolidated equity, including those due to

accounting policy changes and error corrections.

This statement presents a reconciliation between the

carrying amount of each component of equity at the

start and end of the period.

Particularly, the headings 'Accumulated gains' and

'Other reserves' contain:

| The equity heading “Accumulated gains”

includes, at year-end, undistributed gains arising

from the appropriation of the profit/loss of the

companies included in the consolidated group,

and income coming from the sale of

investments classified under “Financial assets at

fair value through other comprehensive income

– Equity instruments”, among others.

| The equity heading “Other reserves”, includes, at

year-end, the implications of the first-time

adoption of accounting regulations, the

application of the profit/(loss) of companies

consolidated using the equity accounting

method, net of the dividends distributed to

companies belonging to the consolidated group,

the remuneration of issuances with certain

characteristics, and gains/(losses) arising from

transactions with own shares, among others.

3. Risk management

3.1. ENVIRONMENT AND RISK

FACTORS

From the Group's perspective, the following factors

can be highlighted from the financial year 2025 that

have had a significant impact on risk management,

both in terms of their impact in the year and their

long-term implications:

ECONOMIC CONTEXT

INTERNATIONAL ECONOMY

The year 2025 was marked by heightened

geopolitical and economic uncertainty, exacerbated

by the substantial global increase in tariffs

implemented by the U.S. administration. While the

signing of various trade agreements helped to clarify

the picture, the new scenario is characterised by

tariffs significantly higher than pre-2025 levels and

by the persistence of some uncertainty as to their

macroeconomic impact. In any event, geopolitical

risks, beyond tariffs, will continue to shape the new

year, particularly in relation to the implications of US

foreign policy.

Despite this adverse context and episodes of strong

volatility in financial markets during the first part of

the year, the international economy was more

resilient than might have been expected. In 2025,

global GDP is estimated to have recorded growth

very close to the 2024 figure of 3.3 %, supported by

several factors: the adaptability of private sector

agents, the conclusion of tariff agreements that

avoided extreme scenarios, the gradual pass-

through of tariffs without generating abrupt

inflationary impacts, China’s reorientation of trade

towards other markets, monetary easing in the euro

area, and the boost provided by a weaker dollar for

most emerging economies. In addition, energy prices

remained relatively contained.

However, behind this resilience of the global

economy, performance by region was mixed. In the

United States, activity slowed less than expected and,

thanks to the key support provided by investment in

artificial intelligence, GDP managed to grow by close

to 2 %. China managed to overcome persistent

troubles in the real estate sector and weak domestic

demand, maintaining growth close to the official 5 %

target, supported by the reorientation of its exports

towards other economies such as the Association of

Southeast Asian Nations (ASEAN) and Europe.

The euro area economy fared somewhat better than

expected, albeit with heavy volatility in the first half of

the year, owing to front-loaded purchases aimed at

cushioning the impact of the tariffs imposed by the

US administration. Overall, GDP in the eurozone grew

by 1.5 % in 2025, compared with 0.8 % in 2024.

Germany, after two years of contraction, moved

back into positive growth (0.3 %). Meanwhile, France

(+0.9 %) endured a political crisis hindering the

approval of a budget to reduce its high fiscal deficit.

Elsewhere, Italy grew at a very sedate pace (+0.7 %),

constrained by the fading impact of the Superbonus

programme (tax relief on construction costs). Looking

ahead to 2026, growth in the euro area is projected

to be broadly in line with last year’s levels, partly

reflecting the impact of higher tariffs.

The continuation of the disinflationary process in the

euro area allowed the ECB to continue gradually

easing monetary policy throughout 2025, bringing

interest rates towards neutral levels (deposit facility

rate at 2.00 %). Against this backdrop, the ECB is

expected to keep interest rates unchanged

throughout 2026, supported by inflation at target and

a more balanced risk landscape. In view of the

uncertain global environment, the ECB has reiterated

its preference for prudence, reserving the possibility

of readjusting its monetary policy only in the event of

substantial changes in the macroeconomic

scenario.

Meanwhile, the US Federal Reserve (Fed) remained in

wait-and-see mode for much of 2025 amid the

uncertainty introduced by the policies of the new US

administration. However, the cooling of the labour

market in the second half of 2025 prompted the Fed

to cut interest rates by 75 basis points in the final

months of the year, bringing the federal funds rate to

a range of 3.50 %–3.75 %. Looking ahead to 2026,

financial markets anticipate two additional 25 basis

point cuts, although the outlook remains uncertain in

the face of competing risks: inflationary pressures

stemming from higher tariffs, set against signs of

weakness in employment.

Lastly, both the ECB and the Fed continued the

process of reducing their balance sheets through a

passive strategy of not reinvesting maturing assets,

gradually withdrawing excess liquidity which,

particularly in the euro area, remained abundant at

year-end. The Fed ended its balance sheet reduction

programme in November, having reduced it from 35

% to 21 % of GDP and announced that it will reinvest all

maturities in Treasury bills starting in December.

SPAIN AND PORTUGAL

In 2025, the Spanish economy delivered a positive

surprise amid a complex international environment,

marked by geopolitical tensions and the

protectionist shift in US trade policy. GDP grew by 2.8

%, exceeding initial forecasts and well above the euro

area average. This outcome confirms the strength of

the recovery that began after the pandemic and

positions Spain as one of the most dynamic

economies in the wider region.

Growth was mainly supported by domestic demand,

driven by private consumption and investment. The

strength of the labour market played a key role:

Social Security affiliation reached a record high of

21.84 million people in employment, up by more than

half a million compared with the previous year, while

the unemployment rate continued to decline.

Population growth, fuelled by migratory flows, helped

to boost employment and consumption, which was

reinforced by real wage growth. This was coupled

with a context of contained interest rates that

stimulated business investment, also supported by

the deployment of Next Generation EU (NGEU) funds.

By contrast, net external demand slightly dented

growth. Although exports, especially of non-tourism

services, rose strongly, this was offset by an increase

in imports, in line with buoyant domestic demand.

The gradual correction of inflation was cut short in

the second half of the year, so that after a low of 2.0

% in May, it ended the year at 2.9 %, one tenth of a

percentage point higher than in December 2024 (2.8

%), influenced especially by the energy component.

Even so, on an annual average basis, inflation eased

to 2.7 % from 2.8 % the previous year, while core

inflation declined to 2.3 % from 2.9 %.

Looking ahead to 2026, CaixaBank Research expects

the Spanish economy to maintain robust, albeit

somewhat more moderate, growth, with GDP

increasing by 2.1 %, constrained by weak external

demand, affected by tariff increases and the

sluggishness of the main European economies.

Private consumption will continue to be the main

driver, supported by improvements in employment

and wages, while investment will continue to benefit

from European funds and favourable financial

conditions.

In 2025, the Portuguese economy slowed slightly, with

GDP growth of 1.9 %, compared with 2.1 % in 2024 and

3.1 % in 2023. Despite this, Portugal continued to

outpace the wider euro area: its GDP at the end of

2025 stood 11.3 % above the level of the fourth quarter

of 2019, compared with 6.8 % in the euro area.

The main drivers of growth remained solid. Domestic

demand continued to expand strongly, driven by

buoyant private consumption, supported by the

significant increase in disposable income and

sustained employment growth. Investment also

showed a positive performance, accelerating

throughout the year. In contrast, external demand

contributed negatively to growth, in a context of high

trade uncertainty that weighed on exports, while

imports - especially of investment-related goods

and services - rebounded.

The outlook for 2026 is favourable, with GDP growth

projected at around 2 %. Investment will continue to

be supported by NGEU funds, which are entering their

final year, and by low financing costs. Private

consumption will continue to benefit from a buoyant

labour market and an improvement in household

finances. In addition, fiscal policy will be a supporting

factor, although the budget is expected to remain

close to balance.

REGULATORY AND SUPERVISORY

CONTEXT

The regulatory outline on which the Group's business

model lies is crucial to its development, whether in

terms of methodological or management processes.

Thus, regulatory analysis and its roll-out represents a

key point in the Group's agenda.

Proposals for legislative and regulatory changes, as

well as new legislation and regulation passed in 2025,

include:

PILLAR 3 REGULATION

At European level, a package of measures has been

published to simplify the EU securitisation framework,

revitalise the market and protect financial stability.

This package is the first legislative initiative in the

framework of the Savings and Investment Union (SIU)

strategy to channel European savings into the

capital markets.

In addition, the Delegated Regulation on the

Fundamental Review of the Trading Book (FRTB) has

been published in the Official Journal of the EU,

postponing its application until 1 January 2027, with

no legal option for further delay.

Of particular note is the agreement between the

European Parliament and the Council of the

European Union on the Crisis Management

Framework (CMDI). This agreement includes a

mandate to the European Commission to prepare a

report analysing how to address temporary liquidity

shortfalls during resolution processes and to propose

policy options to the European Parliament and the

Council of the EU.

As part of the simplification initiatives, a number of

proposals have been taken forward at the level of

the Economic and Financial Affairs Council, the

European Banking Authority and the European

Central Bank.

SUSTAINABLE FINANCING AND ENVIRONMENTAL,

SOCIAL AND GOVERNANCE (ESG) FACTORS

After the publication by the European Commission of

the new package of proposals to simplify the

sustainability reporting framework in the EU, known

as the "Omnibus Sustainability Act I", which includes

technical adjustments to the Corporate

Sustainability Reporting Directive (CSRD) and the

Sustainability Due Diligence Directive (CSDDD). In this

regard, it has been agreed to extend the deadlines

for implementation of the CSRD and CSDDD (‘stop

the clock’) by one and two years respectively. At

present, negotiations are continuing with the aim of

securing approval in late December. In parallel with

Omnibus I, a consultation has been launched to

amend the Delegated Taxonomy Regulation and

reduce administrative burdens without undermining

the objectives of the Green Deal. The Commission

published a comprehensive revision of the

Sustainable Finance Disclosure Regulation (SFDR)

with the aim of simplifying the current rules and

reducing the administrative burden for financial

market participants.

ANTI-MONEY LAUNDERING AND TERRORISM

FINANCING (AML/TF)

2025 is marked by the launch of the new EU Anti-

Money Laundering and Combating the Financing of

Terrorism Authority (AMLA). During 2027, AMLA plans to

select 40 entities for direct supervision, and by 2028 it

is expected to be fully operational.

RETAIL AND MARKETS

The retail and markets area has been marked by the

promotion of the Savings and Investment Union (SIU),

with the aim of channelling savings into productive

investments, improving citizens' access to financial

products and removing regulatory and supervisory

barriers in EU capital markets. In this respect, the

financial education strategy being promoted in the

EU stands out. These policies should be aligned with:

The protection of retail investors, the promotion of

long-term investments and the regulation of

financial markets. Among recent actions: the

collection of data on market integration and

supervision, a proposal for Regime 28 (an optional

legal framework to facilitate the creation and

expansion of companies in the single market), a

recommendation on savings and investment

accounts, and consultations aimed at simplifying the

reporting process. Moreover, as regards housing-

related proposals, it is relevant in the European

context to mention the Housing Construction

Strategy, alongside the European Affordable Housing

Plan. At the same time, various delegated acts of the

MiCA crypto-asset Regulation have been published,

as well as technical standards derived from EMIR 3.0

trade repositories, the MiFID/MiFIR Directive regulating

markets in financial instruments, and the Listing

Package (Prospectus), in line with the objectives of

simplification and supervisory convergence. At the

national level, in the area of consumer protection,

key pieces of legislation are still in the pipeline, such

as the Customer Care Act, the establishment of the

Financial Customer Protection Authority, the Class

Actions Act and the Act on Credit Purchasers and

Credit Managers. Last but not least, the

announcement of the Consumer Agenda 2025–2030

is noteworthy. It will strengthen consumer

confidence, improve legal certainty, enhance

regulatory enforcement and simplify administrative

procedures for businesses, while serving as a

roadmap to guide EU consumer policy over the next

five years.

DIGITAL AND PAYMENTS

The digital regulatory environment has been marked

by intense legislative activity, both at national and

European level.

In Spain, the Draft Bill for the good use and

governance of artificial intelligence has been

approved, which adapts the national framework to

the European Artificial Intelligence Regulation (AI Act).

At European level, the European Commission has

published a Digital Omnibus that simplifies rules on

artificial intelligence, security and data. This is

accompanied by the Data Union Strategy, aimed at

unlocking high-quality data for AI, and by the

European Business Wallets, which will provide

companies with a single digital identity to simplify

procedures and facilitate the development of

economic activities across the Member States.

In addition, in the area of payments, significant

progress has been made at the industry level to

provide interoperability of existing private solutions

through the signing of the agreement between the

European Payments Alliance (EuroPA) and the

European Payments Initiative (EPI). At European level,

negotiations on the Digital Euro Regulation are

ongoing. In addition, a political agreement has been

reached on the payments package, which includes a

new Payment Services Regulation and amendments

to the existing Directive. These rules establish a

general framework for combating fraud, with the aim

of preventing payment fraud and improving the

exchange of fraud-related information.

3.2. RISK CONTROL, MANAGEMENT AND GOVERNANCE

CaixaBank aims to maintain a low average risk

profile, with a comfortable level of capital, to

strengthen the confidence of customers and the rest

of stakeholders through financial soundness.

As part of the internal control framework and in

accordance with the Corporate Global Risk

Management Policy, the CaixaBank Group has a risk

management framework that enables it to make

informed risk-taking decisions, consistent to the

objective risk profile and the level of appetite

approved by the Board of Directors. This framework

comprises the elements described below:

GOVERNANCE AND

ORGANISATION

Internal control framework based on the

Three Lines of Defence model which

provides a reasonable degree of

assurance that the Group's objectives will

be achieved.

It is implemented through internal

policies, standards and

procedures that ensure proper

oversight by the governing bodies

and committees, as well as by

specialised staff.

STRATEGIC RISK PROCESSES

Top risk

events

Critical adverse scenarios that could

significantly affect the Group beyond its

business model in the short to medium

term, potentially impacting its financial

health, reputation, strategy, or other

aspects.

RISK

MANAGEMENT

FRAMEWORK

Corporate

Risk

Catalogue

Group risk taxonomy corresponding to the

material risks identified.

Risk Appetite

Framework

(RAF)

It determines the types of risk and

thresholds the Group is willing to accept in

pursuing its strategic objectives, in relation

to all the risks included in the Catalogue.

RISK CULTURE

The risk culture is structured

through training, communication

and the evaluation and

rewarding of employee

performance, etc.

Risk

Assessment

Half-yearly self-assessment exercise of the

risk profile of the Group.

3.2.1. INTERNAL CONTROL FRAMEWORK

The internal control framework is the set of

strategies, policies, systems and procedures that

exist within CaixaBank Group to ensure prudent

business management and effective and efficient

operations. It is implemented through:

| The appropriate identification, measurement

and mitigation of risks to which the Group is or

could be exposed.

| The existence of comprehensive, pertinent,

reliable and relevant financial and non-financial

information.

| The adoption of solid administrative and

accounting procedures.

| The compliance with regulations and

requirements in terms of supervision, codes of

ethics and internal policies, processes and

standards.

It is integrated into the Group's internal governance

framework, tailored to the business model and

complies with: i) the regulations applicable to

financial institutions, ii) the EBA Internal Governance

Guidelines of 2 July 2021, which develop the internal

governance requirements set out in Directive

2013/36/EU of the European Parliament, iii) the

recommendations of the CNMV on this matter and

iv) other guidelines on control functions applicable

to financial institutions.

The principles for the Group's internal control

framework are detailed in the Corporate

Governance and Internal Control Policy, utilizing the

'three lines of defence model'.

FIRST LINE OF DEFENCE

The first line of defence comprises the business lines

and units, together with the areas providing support,

that give rise to the exposure to risks in the

performance of the Group's activities. Assumes risks

taking into account the Group's risk appetite,

authorised risk limits and existing policies and

procedures, and it is part of its responsibility to

manage and control these risks. Therefore, they are

responsible for designing and implementing

processes and establishing control mechanisms to

ensure that the main risks arising from their activities

are identified, measured, assessed, managed,

mitigated, controlled and reported.

The business lines and support areas integrate

control in their daily activities as a basic element

reflecting the Group's risk culture.

When required due to the level of complexity or

intensity of activities, specific specialist control and

analysis units are set up to ensure that the risks are

handled in an effective manner. These functions may

be integrated into the business and business support

units themselves, as long as they do not belong to

the second or third line of defence functions.

SECOND LINE OF DEFENCE

Formed by the Risk Management Function and

Compliance, the second line of defence is

responsible for:

| Preparing risk management and control policies

aligned with the Risk Appetite Framework (RAF) in

coordination with the first line of defence,

assessing their subsequent fulfilment.

| Identifying, measuring and monitoring risks

(including emerging risks), contributing to the

definition and implementation of risk, process risk

and control indicators.

| Regular monitoring of the effectiveness of first

line of defence indicators and controls, as well as

second line of defence indicators and controls.

| Following up control weaknesses that are

identified, as well as establishing and

implementing Action Plans.

| Issuing an opinion on the suitability of the risk

control environment.

Risk Management

Function

Compliance

Second line of

defence

Global Risk

Committee

Executive

Committee

Board of

Directors

Third line of

defence

Internal Audit

Audit and Control

Committee

The activities of the second line of defence, as well as

the weaknesses identified, the follow-up of action

plans and the opinion on the adequacy of the

control environment in the Group, are regularly

reported to the bodies responsible for the control

environment, following the established hierarchy, as

well as to supervisory bodies.

Risk Management Function

For risks within its remit, which are all risks except

those reserved for Compliance (legal and regulatory,

and conduct and compliance): i) ensures that all

risks to which the Group is or may be exposed are

properly identified, assessed, monitored and

controlled; ii) provides the governance bodies with

an aggregated view of all risks to which the Group is

or may be exposed, including an aggregated version

of the operational control environment of risk

processes; iii) monitors risk-generating activities,

assessing their alignment with the approved risk

tolerance and ensuring forward-looking planning of

the related capital and liquidity needs under both

normal and adverse conditions; iv) monitors

compliance with the risk appetite limits approved by

the Board of Directors; v) validates and oversees the

proper functioning and governance of risk models,

verifying their suitability in line with regulatory uses;

and vi) ensures the existence of a risk culture

embedded in management, based on the

identification and mitigation of risks and on

balancing risk and return, through training and

awareness-raising initiatives that position risk culture

as a differentiating element in decision-making.

At CaixaBank, the risk management function (Risk

Management Function or RMF) is carried out by the

Risk Management and Compliance Division. The Risk

Management Function reports functionally to the

Chair of the Risks Committee and its corporate

scope extends to the entire CaixaBank Group,

notwithstanding the functionally dependent units

that exist at certain Group companies.

Among other responsibilities, CaixaBank’s RMF is

directly entrusted with second line of defence

functions for all risks, whether financial, non-financial

or transversal in nature, except for those reserved for

the regulatory compliance function. It is also

responsible for setting the general risk management

framework and other aspects common to all

financial and non-financial risks, for the transversal

function of promoting, coordinating and governing

the Bank’s operational internal control activities

across all risks, for ensuring the reliability of

information, and for model validation.

The person in charge of Risk Management and

Compliance is considered to be responsible for the

CaixaBank Group's Risk Management Function and is

therefore the person who complies with the

requirements of regulators and supervisors in this

area and performs the functions assigned to this

position by the applicable regulations.

Compliance

The mission of Compliance is to identify, assess,

supervise and report on the risks of sanctions or

financial loss to which the Group is exposed, as a

result of non-compliance or defective compliance

with laws, regulations, judicial or administrative

requirements, codes of conduct or ethical and good

practice standards, relating to its scope of action

and with reference to legal and regulatory, and

conduct and compliance risks (both risks jointly fall

under Compliance Risk); its mission is also to advise,

inform and assist senior management and the

governance bodies on regulatory compliance

matters, promoting, through training, information

and awareness actions, a culture of compliance

throughout the organisation.

To this end, the mission of Compliance is articulated

through the following objectives:

| The supervision of the compliance risk derived

from the processes and activities carried out by

the company.

| Fostering, championing and promoting the

corporate values and principles enshrined in the

Code of Ethics that guide the Bank's actions.

| Promoting a culture of control and compliance

with the law and with all rules and regulations in

force (both external and internal) so as to help

ensure that they are known and respected

across the entire organisation.

The Compliance Department reports hierarchically

to the Risk Management and Compliance

Department, which has a holistic view of all risks, and

functionally to the Chair of the Risks Committee. It is

an autonomous function, and thus has sufficient

initiative to undertake its duties without the need to

receive specific instructions from other departments

or act at their behest. Likewise, Compliance has a

corporate remit and, accordingly, from CaixaBank

the compliance model of subsidiaries with their own

compliance function is coordinated and overseen,

while management is centralised for those that do

not have a dedicated team.

Compliance regularly reports to the governance

bodies and supervisory authorities (Bank of Spain,

Executive Service of the Commission for the

Prevention of Money Laundering and Monetary

Offences (SEPBLAC), the Spanish Treasury and the

CNMV, among others).

The management model of Compliance is built on

two fundamental pillars: the compliance risk

taxonomy and the three lines of defence model.

Compliance uses the following key elements to

ensure adequate coverage of compliance risk: i)

compliance programme, ii) annual compliance plan

and monitoring of identified control deficiencies or

regulatory breaches, and iii) action plans for their

mitigation. Likewise, Compliance carries out advisory

activities on matters within its remit and carries out

actions to promote the culture throughout the

organisation (training, awareness-raising and

corporate challenges).

In accordance with CaixaBank’s corporate

governance and internal control policy, Compliance

is responsible for overseeing conduct and

compliance risks and regulatory legal risk from

among those included in the Corporate Risk

Catalogue.

The subcategories that make up this Compliance

Risk Taxonomy are subject to annual review by the

Global Risks Committee.

Integrity of conduct and compliance with internal

regulations by all members of the organisation are

the essential pillars of the activity provided by

CaixaBank. It is therefore essential to provide staff

with mechanisms to help detect possible conduct

that should be prevented/corrected.

CaixaBank has an Internal Information System (IIS)

for reporting actions or omissions that may

constitute breaches of European Union Law and

those that may constitute a serious or very serious

criminal or administrative offence.

As a result of CaixaBank’s commitment to promoting

best practices, a follow-up audit was carried out in

2025 of the Bank’s existing certifications under ISO

37301 on compliance management systems, ISO

37001 on anti-bribery management systems, and UNE

19601 specifically on criminal compliance

management systems.

Furthermore, certification processes linked to the

abovementioned standards were undertaken at

various Group companies.

THIRD LINE OF DEFENCE

Internal Audit, as an independent and objective

assurance and consulting function, serves as a third

line of defence, supervising the actions of the first

and second lines of defence with the aim of

providing reasonable assurance to Senior

Management and the governing bodies. It

contributes to the Group achieving its strategic

objectives, bringing a systematic and disciplined

approach in the assessment and improvement of

the risk management and control processes, and

corporate governance.

In order to establish and preserve the function's

independence, Internal Audit Management

functionally reports to the Chair of the Audit and

Control Committee, without prejudice to the fact that

it must report to the Chair of the Board of Directors

for the due compliance of duties.

Internal Audit has a rule book governing how it

operates, approved by the Board of Directors. It

establishes that Internal Audit is an independent and

objective assurance and consultation function. It is

designed to add value and improve activities. Its

objective is to provide reasonable assurance to

Senior Management and the governance bodies

with regard to:

| The effectiveness and efficiency of internal

control systems in mitigating the risks associated

with the activities of the Group.

| Compliance with the legislation in force, with

special attention to the requirements of

supervisors and the suitable application of the

global management and risk appetite

frameworks defined.

| Compliance with internal policies and rules, and

alignment with best practices and uses in the

sector, for adequate internal governance of the

Group.

| The reliability and integrity of information,

including the effectiveness of system of Internal

Control over Financial and Sustainability

Reporting (ICFR and ICSR).

Its main supervisory functions include:

| The adequacy, effectiveness and

implementation of policies, regulations and

procedures.

| The effectiveness of controls.

| Adequate measurement and monitoring of first

line of defence and second line of defence

indicators.

| The existence and correct implementation of

action plans to remedy shortcomings in controls.

| The validation, monitoring and assessment of

the control environment by the second line of

defence.

Its duties also include:

| Preparing a multi-year Strategic Internal Audit

Plan aligned with that of the Bank, and preparing

the multi-year Annual Audit Plan based on risk

assessments, which includes regulatory

requirements and tasks and projects requested

by Senior Management and the Audit and

Control Committee. The annual plan is submitted

to the Audit and Control Committee for review

and then to the Board of Directors for approval.

In this respect, the highlights of the 2025 annual

audit plan were: cybersecurity, the technology

transformation plan, sustainability, marketing

and quality, corporate governance and

regulation, supervisory expectations, financial

risks, and key projects.

| Regularly reporting on the conclusions of works

carried out and weaknesses detected, passed

on to governing bodies, Senior Management,

external auditors, supervisors and all other

relevant control and management

environments.

| Adding value by proposing recommendations to

address weaknesses detected in reviews and

monitoring their implementation by the

appropriate centres.

3.2.2. GOVERNANCE AND ORGANISATION

The organisational set-up in relation to governance in risk management is presented below:

Annual General Meeting

Board of

Directors

(BoD)

Determines and monitors the business model and is responsible for introducing a risk governance

framework in keeping with the Group's risk appetite. This includes the promotion of a solid and diligent risk

culture, establishing the risk appetite within a Risk Appetite Framework (RAF). Monitors the result of the risk

assessment process, establishes the taxonomy of the material risks through the Corporate Risk Catalogue,

approves the internal governance policies and the management and control of risks.

Innovation,

Technology and

Digital

Transformation

Committee

Executive

Committee

Executive

Committee

Audit and Control

Committee (ACC)

Appointments and

Sustainability

Committee

Remuneration

Committee

Directors

Evaluates the

effectiveness of

internal control

systems, the

internal audit

function and risk

management

systems. It also

oversees the

process of

preparing and

presenting financial

and non-financial

information.

Submits proposals to

the Board of Directors

and assesses the

skills, knowledge and

experience of the

members of the

Board and key

personnel. Supervises

and controls the

correct operation of

the corporate

governance system,

as well as the

fulfilment of the

policies and rules

regarding

environmental and

social matters.

A body vested with

powers from the

Board of Directors to

adopt operational

and strategic

decisions within

regulatory limits.

Approves certain

credit and

guarantee

transactions and

submits others to the

Board in accordance

with its powers.

Establishes the

general principles

and the framework

of governance of

the retributive policy

of the Board and

the compensation

package of Senior

Management and

key positions, and

informs of the

general

remuneration

policy.

Assists the Board in

all matters related

to technological

innovation and

digital

transformation, as

well as the

monitoring and

analysis of trends

and innovations

when they may

affect the strategy

and business

model.

Advises the Board

on the overall risk

strategy and risk

appetite, reports on

the RAF and

proposes risk

policies to the

Board.

Management Committee

Standing Loan Committee

Global Risks Committee

Tasked with developing the Strategic Plan

and Budget approved by the Board of

Directors. Adopts decisions that affect, or

could affect, risk management. Approves

structural changes, appointments,

spending lines and business strategies.

Collectively endorses loan, credit,

guarantee and investment transactions

in general that form part of the bank's

corporate purpose, that it is responsible

for approving as set out in the internal

regulations.

Responsible for the overall

management, control and monitoring

of risk management, as well as

assessing the implications for liquidity

management, solvency and the

consumption of economic and

regulatory capital.

Information and Data Quality

Governance Committee

Information Technology and Security

Committee

Operational Resilience Committee

Technical Committee on the Interest

Rate Benchmark Contribution Process

Efficiency Committee

Capital Committee

Recovery and Resolution Plan

Committee

Privacy Committee

Product Strategy Committee

ALCO “Assets and Liabilities

Committee”

Regulation Committee

Internal Control Body – ICB Group

Internal Control Body – ICB

Incidents Committee

Diversity Committee

Sustainability Committee

Major Auctions Committee

Committee for the Valuation and

Acquisition of Real Estate Assets

(CVAAI)

Credit Risk Policy Committee

Impairment Committee

Models Committee

Operational Risks Committee

Reputational Risks Committee

Corporate Crime Prevention Committee

Internal Rules of Conduct (IRC)

Monitoring Body

Senior Management*

* Acting within the framework of the assigned

duties it comprises several committees for risk

governance, management and control.

3.2.3. STRATEGIC RISK PROCESSES

The objective of the strategic risk processes is the

identification, measurement, monitoring, control and

reporting of risks. To this end, the processes include

four key elements, which are developed below: The

Top risk events (identification and assessment), the

Corporate Risk Catalogue (identification, taxonomy

and definition), the risk appetite framework

(monitoring) and the Risk Assessment.

The result of strategic processes is reported at least

annually, first to the Global Risks Committee and then

to the Risks Committee, before finally being

submitted to the Board of Directors for approval.

TOP RISK EVENTS

The competitive and social context is decisive in the

Group's strategy and development. In this regard, the

Group identifies as ‘top risk events’ the most relevant

adverse events to which the Group is exposed

beyond its own business model in the short to

medium term and which could have a significant

impact on its financial position, reputation, strategy

or any other area. Consequently, should any of these

significant risk events occur, they would manifest

through one or more risks outlined in the Catalogue.

In this regard, the severity of the impact of these

events can be mitigated through risk management.

In 2025, the top risk events were grouped into five

main families of risk events:

Shocks arising from the geopolitical and

macroeconomic environment

This family includes a pronounced and persistent

downturn in the macroeconomic outlook, coupled

with episodes of heightened volatility in financial

markets, which could result from global events such

as the escalation of armed conflicts, persistent

diplomatic tensions, trade wars, supply chain

disruptions, international sanctions or cyberattacks

affecting global stability, the weakening of

multilateral institutions and the loss of international

coordination in response to global crises, among

others. All of these may be driven by, or exacerbated

by, ESG factors such as migratory pressures or

energy crises. They could also stem from domestic

events such as asset bubbles, persistent

macroeconomic imbalances, or an intensification of

political and territorial tensions in Spain.

These events may result in financial market

disruptions, operational or regulatory restrictions,

deterioration of investor confidence, increased

political and economic uncertainty, inflationary

pressures, materialisation of systemic economic

crises or prolonged recessions that significantly

affect economic activity and the stability of the

financial system in Spain. The potential

consequences include a widespread deterioration in

credit quality, a reduction in business volumes, an

increase in non-performing loans, deposit outflows,

losses on investment portfolios, an increase in the

country risk premium (funding costs), and pressure

on costs (due to inflation).

Mitigating: the Group understands that such risks are

sufficiently managed by its levels of provisions,

solvency and liquidity, validated by compliance with

both external and internal stress exercises, and

reported in the annual internal capital and liquidity

adequacy assessment processes (ICAAP and ILAAP,

respectively).

Arrival of new competitors and application of

new technologies

There is an expectation that the competition of

newcomers will increase, such as fintech companies

(such as digital banks), big techs and neobanks with

disruptive proposals or technologies. Depending on

the degree of intensity of this event, a new entrant

could gain a significant market share at the expense

of incumbent institutions. This could also lead to

intense disaggregation and the disintermediation of

part of the value chain, which in turn could affect

margins and cross-selling, given that banks would be

competing with more agile, flexible companies with

generally low-cost proposals for the consumer. All of

this could be exacerbated if the regulatory

requirements applicable to these new competitors

and services were not the same as those in place at

present for credit institutions.

However, the gradual normalisation of interest rates

and actions aimed at reducing liquidity by central

banks have led to lower investment in fintechs,

emphasising profitability over their ability to pursue

aggressive growth strategies. However, the

normalisation of interest rates into positive territory

has also led to the emergence of commercial

deposit-taking offers by digital banks that have a

banking licence, which could help them to expand

their customer base. Meanwhile, big techs continue

to expand their positioning along parts of the value

chain of financial institutions in other jurisdictions.

Alongside the developments of new entrants, there

are also initiatives driven by regulatory authorities

that could facilitate the entry of other players into

the financial business. One such initiative is the

launch of a digital euro, which, pending a specific

design, could allow non-bank players to intermediate

the management of digital euro portfolios. Further

examples include the legislative proposals for a

European digital ID, PSD3 and Open Finance, which

will allow for the sharing of financial data with third

parties and reduce the costs of switching financial

service providers.

With regard to new technologies, it is worth

highlighting recent advances in generative artificial

intelligence, a technology that can drive competitor

growth, cost reduction and new ways of engaging

with customers. Its degree of application can lead to

competitive advantages or disadvantages.

Mitigating: The Group considers new entrants to be a

low risk, as they are not only a potential threat, but

also an opportunity as a source of collaboration,

learning and stimulus for the achievement of the

digitalisation and business transformation objectives

set out in the Strategic Plan. For this reason, the

Group regularly monitors the performance of the

main newcomers and big tech movements within

the industry. Furthermore, an internal sandbox space

has been in place since 2020 to technically analyse

—in a streamlined and secure way— the solutions of

certain fintech companies with which there are

partnership opportunities.

Furthermore, the Group possesses Imagin, which

serves as an outstanding value proposition, and it will

continue to capitalise on this to counter competition

from neobanks. Regarding competition from big

techs, the Group is committed to improving the

customer experience with the added value of the

Group’s social sensitivity (‘bits and trust’), as well as

exploring possible collaborative approaches (open

banking) and entering into agreements in certain

cases (such as Apple or PayPal).

Regarding the application of generative artificial

intelligence, CaixaBank is actively implementing

various use cases and intends to enhance its

technological infrastructure to integrate this

technology extensively into its operations.

Cybercrime and information security

Year after year, cybercrime evolves criminal

schemes to try to profit from different types of

attacks. However, the Group's introduction of these

advanced technologies and services to customers

also opens up new vulnerabilities that cybercriminals

aim to exploit, increasing the complexity of their illicit

activities.

This constant evolution of criminal vectors and

techniques puts pressure on the Group to constantly

reassess the model for preventing, managing and

responding to cyberattacks and fraud in order to be

able to respond effectively to current and emerging

risks. An example of this is the adoption of generative

artificial intelligence by cybercriminals in order to be

more efficient and effective when constructing and

executing their attacks and fraud attempts, to which

the Group is responding with new security

capabilities and strategies.

Relentless efforts among cybercriminals to

impersonate different companies and official bodies

have led to numerous cybersecurity events at many

companies and organisations. In parallel, regulators

and supervisors in the financial field have made this

a top priority. The DORA Directive (Digital Operational

Resilience Act) took effect in January 2025 and is

aimed precisely at strengthening the digital

resilience of the financial sector.

Taking into account the global context, existing

cybersecurity threats and recent attacks received by

other entities, the exploitation of such events in the

Group's digital environment could have serious

impacts of various kinds, including massive data

corruption, unavailability of critical services (e.g.

ransomware), attacks on the supply chain, leakage

of confidential information or fraud in digital

channels. Should these impacts directly related to

banking transactions occur, they could entail

significant sanctions by the competent

organisations and potential reputational damage for

the Group.

Mitigating: The Group is also very aware of the

importance and level of threat that exists at this time

and therefore constantly reviews the technological

environment and applications in terms of the

integrity and confidentiality of information, as well as

the availability of systems and business continuity,

both with planned reviews and through continuous

auditing by monitoring the defined risk indicators.

In addition, the Group keeps its security protocols

and mechanisms up to date to adapt them to

current and emerging threats (e.g. generative

artificial intelligence), continuously monitoring the

risks to which the Bank is exposed in the course of its

business. The evolution of security protocols and

measures are included in the strategic information

security plan, in line with the Group's strategic targets

to remain at the forefront of information security and

in accordance with the best market standards. The

Group also has an International Security Advisory

Board (ISAB), whose functions include reviewing

information security strategy and providing external

expertise to strengthen operational resilience.

Unfavourable changes to the legal, regulatory

or supervisory framework

The risk of increased pressure from the legal, fiscal,

regulatory or supervisory environment is one of the

risks identified in the risk self-assessment exercise

that may have the greatest impact in the short to

medium term. Specifically, we have observed a need

to continue to uphold constant monitoring of new

regulatory proposals and their implementation,

given the high activity of legislators and regulators in

the financial sector. Various stakeholder groups

(supervisors, regulators, governance bodies, etc.) are

becoming increasingly concerned over geopolitical

and cybersecurity risks, as well as with regard to ESG

aspects, despite a consensus on the need to temper

such expectations. More precisely, particular

importance is being attached to the risks arising

associated with the increase in taxes levied on the

banking sector, especially where this leads to a loss

of competitiveness vis-à-vis other European players.

Among the legislative initiatives at the European

level, the level 2 developments of the final Basel III

reforms, the reform of the bank crisis management

framework (CMDI – Crisis Management and Deposit

Insurance) and the revision of the securitisation

framework stand out. In relation to ESG aspects,

highlights in the period include the law-making

process of the Sustainability Omnibus package,

which seeks to streamline reporting requirements

(CSRD – Corporate Sustainability Reporting Directive)

and due diligence obligations (CSDDD – Corporate

Sustainability Due Diligence Directive). In addition, the

ESG regulatory environment continues to evolve, with

new guidelines such as the EBA's ESG Risk Guide

reinforcing expectations on how institutions should

integrate ESG factors into their risk management and

decision-making. In the digital area, the

development of the digital euro, the progress of the

payments package (PSD3/PSR - Payment Services

Directive and Regulation), aimed at modernising

digital payments in the EU and introducing anti-fraud

measures, as well as the regulation on data sharing

in the financial sector (FIDA - Financial Data Access)

are closely monitored. In addition, the creation of the

European Digital Identity Wallet will be disruptive,

enabling the identification and authentication of

individuals across the EU. Moreover, with the recent

launch of the Savings and Investments Union

initiative (SIU), special attention is given to the

finalisation of the Retail Investor Strategy (RIS - Retail

Investment Strategy). In Spain, the transposition of

the Consumer Credit Directive is still pending, along

with the approval of the draft bill to establish the

Independent Administrative Authority for the

Protection of Financial Consumers, the draft Organic

Law on the protection of consumers’ rights and

interests, and the draft bill on credit servicers and

credit purchasers. In the supervisory realm, the

period saw heightened pressure on risk

management (for example, the ECB’s review of

institutions’ practices in relation to environmental

risks, or the ECB Guide on governance and risk

culture). The configuration of the new tax framework,

which incorporates a structural levy on net interest

income and a supplementary tax for large groups,

has significantly increased the tax burden on credit

institutions, affecting their tax efficiency and

strategic capital planning.

Further highlights included the implementation of

Law 11/2023 of 8 May, transposing EU Directives on the

accessibility of certain products and services; DORA

(Digital Operational Resilience Act); and, in the field of

artificial intelligence, Regulation (EU) 2024/1689,

known as the AI Act; and on the subject of

sustainability, the EBA Guidelines on the

management of ESG risks. In the markets area, the

implementation of EMIR 3.0, which reinforces control

and transparency in derivatives, as well as the

modification of MiFID/MiFIR. At Spanish level, this

includes the introduction of the digital ID for in-

person identification, which has a significant internal

impact, and, lastly, Organic Law 1/2025 on procedural

efficiency, which ushers in new requirements relating

to judicial efficiency and mandatory mediation.

Mitigating: Regulatory proposals impacting the

Group are managed and tracked by various

divisions, coordinated by the Regulatory Committee.

Furthermore, given the increase in legislative activity,

relations with the authorities have been stepped up

in order to anticipate possible new legislative

initiatives and, in turn, to be able to represent and

convey CaixaBank’s interests to the authorities in an

efficient manner.

Concerning the regulations that have been

approved, the Regulatory Implementation

Management team is responsible for the centralized

oversight and monitoring of those impacting the

Group before they become effective. The goal is to

ensure timely and effective implementation by

adjusting policies, processes, contracts, and internal

regulations to comply with the new rules. This

process is supported by an external provider to carry

out a double control of these regulations. Regulatory

implementation processes are submitted to each of

the relevant internal committees (such as the

Transparency Committee for the adaptation of the

new regulation on contracts, rules, policies and

internal procedures). In addition, the status and

evolution of the implementation is reported to the

Global Risks Committee and the Risks Committee on

a regular basis.

Extreme events

Given their nature, they are events with a low

probability of occurrence, but with a high potential to

cause significant consequences, such as

pandemics, events of an environmental nature or

with an impact on the supply chain (e.g. power,

water, gas outages, service shutdowns, etc.). The

rarity of such events historically complicates

predicting their impact on each risk listed in the

Catalogue, as well as determining the specific

measures that would need to be implemented to

manage or mitigate the event's effects on the

economies of the impacted countries. Taking

COVID-19 as a reference, there may be high volatility

in the financial markets. Furthermore,

macroeconomic perspectives may get significantly

worse and with notable uncertainty in the

prospective scenarios.

Mitigating: capacity for effective implementation of

management initiatives to mitigate the effect on the

risk profile caused by the deterioration of the

economic environment in case of an extreme

operational event. Moreover, business continuity

plans continue to be strengthened with a view to

effectively mitigating the scenarios identified in the

risk analysis across the various areas (corporate

centres, branch network and international network).

Procedures to ensure an accurate estimation of

losses are also being enhanced, and efforts are

under way to make the Group more resilient to

extreme events.

CORPORATE RISK CATALOGUE

The Corporate Risk Catalogue is the Group's

taxonomy of material risks. It ensures a consistent

Group-wide approach to the monitoring and internal

and external reporting of risks, and undergoes

regular reviews (at least once a year). Following an

analysis, the material risks for CaixaBank are included

in the Risk Catalogue.

Non-material risks are inventoried and reviewed

periodically in successive identification and

materiality exercises, in order to detect any potential

changes in their nature, magnitude, recurrence or

trend that might warrant their inclusion in the

catalogue.

OPERATIONAL RISK

FINANCIAL RISKS

Actuarial

Credit

Conduct and

compliance

Legal and

regulatory

Technology

Other

operational

risks

Structural

interest

rate

Liquidity and

funding

Market

Business profitability

Own funds and solvency

TRANSVERSAL RISKS

Model

Reputational

TOP RISK EVENTS

Shocks arising from

the geopolitical and

macroeconomic

environment

Arrival of new

competitors and

application of new

technologies

Cybercrime and

information security

Unfavourable changes

to the legal, regulatory

or supervisory

framework

Extreme events

Risks affected by the transversal

sustainability factor (ESG)

¹It is important to note that the objectives are not only reflected in risk tolerance levels, but the RAF also includes minimum risk appetite statements, such as the

monitoring of tax risk as part of the legal and regulatory risk included in the Corporate Risk Catalogue.

The definition of each risk is set out below:


Transversal risks				Obtaining results below market expectations or Group targets that, ultimately, prevent the company from reaching a level of sustainable returns greater than the cost of capital.
				Risk caused by a restriction of the CaixaBank Group’s ability to adapt its level of capital to regulatory requirements or to a change in its risk profile.
				Potential adverse consequences for the Group that could arise from decisions based primarily on the results of models with errors or biases in their design, conception, application or use.
				Potential financial loss or lower income for the Group as a result of events that negatively affect the perception that interest groups have of the CaixaBank Group.

Financial risks				Loss of value of the assets of the CaixaBank Group vis-à-vis a customer due to the impairment of their ability to honour their commitments to the Group. Includes the risk generated by transactions in the financial markets (counterparty risk).
				Risk of a loss or adverse change to the value of the commitments assumed through insurance or pension contracts with customers or employees due to the differences between the estimate for the actuarial variables used in the pricing model and reserves and the actual performance of these.
				Negative impact on the economic value of balance sheet items or on the net interest margin due to changes in the structure of interest rates over time and the impact thereof on asset and liability instruments and off-balance sheet items not held in the trading book.
				Risk of insufficient liquid assets or limited access to market financing to meet the contractual maturities of liabilities, regulatory requirements, or the investment needs of the Group.
				Loss of value, with impact on results and solvency, of a portfolio (set of assets and liabilities), due to adverse movements in prices or market rates.

Operational risk				The application of criteria that run contrary to the interests of its customers and stakeholders, or acts or omissions by the Group that are not compliant with the legal or regulatory framework, or with internal policies, regulations or procedures, or with codes of conduct, ethical standards and good practice.
				Potential losses or decreases in the CaixaBank Group's profitability as a result of legislative changes, the incorrect implementation of said legislation in the CaixaBank Group’s processes, the misinterpretation of legislation applied to transactions, incorrect handling of court or administrative rulings or of claims or complaints received.
				Risks of losses due to hardware or software inadequacies or failures in technical infrastructure, due to cyberattacks or other circumstances that could compromise the availability, integrity, accessibility and security of the infrastructures and data.
				Risk of loss or damage caused by errors or shortcomings in processes, due to external events or due to the accidental or intentional actions of third parties outside the Group. This includes risk factors related to outsourcing, business continuity and external fraud.

Business

profitability

Own funds

and solvency

Model

Reputational

Credit

Actuarial

Structural

interest rate

Liquidity and

funding

Market

Conduct and

compliance

Legal and

regulatory

Technology

Other

operational

risks

Risks affected by the transversal

sustainability factor (ESG)

There was no change during the period in the 13 level

1 risks that make up the Corporate Risk Catalogue.

The only change is that the definition of model risk is

adjusted to accommodate the possibility that

models may include biases in their design or

conception. Moreover, in the 2025 review exercise,

conduct and compliance risk was identified as being

materially affected by the transversal sustainability

(ESG) risk factor. Previously, business profitability risk,

reputational risk, credit risk, legal and regulatory risk,

and certain other operational risks had been

identified.

RISK APPETITE FRAMEWORK

The Risk Appetite Framework (hereinafter Risk

Appetite Framework or “RAF”) is a comprehensive and

forward-looking tool with which the Board of

Directors determines the risk typology and thresholds

(risk appetite) it is willing to accept in order to

achieve the Group's strategic objectives 1. These

objectives are formalised through the Risk Appetite

Statement, which consists of qualitative statements

(risk philosophy) that make explicit the Board's

positioning and aspiration in relation to risk appetite

and risk preferences, the purpose of which is to

reflect the Group's specific propensity towards each

of the risks in the Corporate Catalogue.

Maintain a moderate-to-low risk profile, with a comfortable level of capital, with the aim of building trust among customers and

other stakeholders through financial strength.

Balanced and diversified generation of income and capital, supported by a sound balance sheet structure, preserving economic

value and the quality of the credit portfolio and insurance activity.

Be permanently in a position to meet its obligations and funding needs in a timely manner, even under adverse market conditions.

Have a stable and diversified funding base to preserve and protect the interests of its depositors.

Operate in the financial markets, primarily focused on serving clients.

Ensure that the business strategy and relationships with stakeholders satisfy responsible conduct criteria, applying the highest

ethical and sustainability standards and taking into account impacts and their transmission through transversal ESG risk factors.

To place integrity at the core of our relationship with stakeholders, complying with the highest standards of conduct and regulatory

compliance, with special attention to the prevention of money laundering, the financing of terrorism and other legal and regulatory

obligations.

Pursue excellence, quality and operational resilience to continue to provide financial services to customers in line with their

expectations, even under adverse conditions.

Manage the use of models under a robust control and governance framework to ensure informed and consistent decision-making,

taking into account data ethics and avoiding bias.

Promote sound internal governance, based on the three lines of defence model in risk management, and a strong risk culture

embedded in management through policies, communication, training and staff remuneration.

Qualitative statements

Level 1

Level 2

Level 3

Statements and

core metrics

Metrics that

complement and

provide a forward-

looking vision

Other metrics

relevant to

risk management

Transversal risks

Cost-to-income ratios

Regulatory solvency ratios

Quantitative metrics on non-financial

risks: model and reputational

Detailed metrics

that help to

complement the

monitoring of all the

risks featured in the

Catalogue, thus

ensuring end-to-end

coverage and

providing a forward-

looking perspective.

Management and

follow-up metrics

Limits to risk-taking

Recovery indicators

not included in level

1 or 2

Other relevant

metrics

Business profitability

Own funds and solvency

Model

Reputational

Financial risks

Calculations based on advanced models

and approaches

Accounting figures (cost of risk and NPL

ratio)

Indicators that encourage diversification

(e.g. by borrower, sector)

Regulatory and internal liquidity metrics

that oversee the upholding of

comfortable liquidity levels

Credit

Actuarial

Structural interest rate

Liquidity and funding

Market

Equivalence in the Risk Catalogue

Operational risk

Quantitative metrics on non-financial

risks: (i.e. operational)

Metrics of number of compliant

incidents

Conduct and compliance

Legal and regulatory

Technology

Other operational risks

Thresholds

Reference threshold

or full traffic-light

classification

Appetite

Tolerance

Non-compliance

Recovery

Plan

Reporting

Trend in metrics

and forecast

Monthly by the Global Risks Committee

and Risks Committee

Quarterly to the Board of Directors

Monthly by the

Global Risks

Committee

Quarterly by the

Risks Committee

Global Risks

Committee and

specialised

committees

Reporting and alert system

Non-compliance

They are escalated to: Global Risks Committee, Risks Committee and

Board of Directors

Risk preferences outline the Bank's stance on various

risk types in an understandable manner. They are

established for all primary risks within the Catalogue

and are meant to encapsulate the current

understanding, perspectives, and capabilities

concerning these risks, thereby directing the

company's management strategies.

To determine the appetite thresholds, as applicable,

the references taken into account are current

applicable regulatory requirements, historical

developments and standardised and structural

approaches, and strategic objectives with a

sufficient additional margin to allow for early

management to prevent non-compliance.

RISK ASSESSMENT

The Group conducts a risk self-assessment process

every six months, seeking to:

| Assess the inherent risks assumed by the Group

according to the environment and business

model.

| Make a self-assessment of its risk management

and control capacity, as a tool to help detect

best practices and weaknesses in relation to

risks.

This process makes it possible to determine the

status of each of the risks identified in the Corporate

Risk Catalogue and, also taking into account the

internal governance assessment, to determine the

Group's risk profile.

3.2.4. RISK CULTURE

The Group’s risk culture is embodied in the Risk

Culture Framework, which serves as the reference

document for entrenching a robust, consistent and

transversal culture across the entire organisation.

This framework develops in depth the principles,

roles, responsibilities and mechanisms that guide

prudent risk management, aligning corporate values,

risk appetite and supervisory expectations.

Risk culture guides management and employee

decision-making towards behaviours that support

prudent management and are consistent with the

organisation’s risk appetite. It also promotes a

proactive and comprehensive approach to risk

management and control in all businesses and

typologies, with a forward-looking vision that

facilitates the analysis of trends in different horizons

and scenarios, favouring the identification and

management of emerging risks.

This culture is underpinned by a high level of risk

awareness, risk management, a strong governance

structure, open and critical dialogue within the

organisation and the absence of incentives for

unwarranted risk taking.

Thus, actions and decisions involving an assumption

of risk are:

| Consistent with the corporate values and the

core principles of the Group's activity.

| Consistent with the Group's risk appetite and risk

strategy.

| Based on exhaustive knowledge of the risks

involved and how to manage them, including

environmental, social and governance factors.

The Framework enshrines the strategic pillars on

which the risk culture is built:

ACCOUNTABILITY

CaixaBank’s Board of Directors fosters a strong risk

culture, acting as a role model and practising and

conveying the expected values and behaviours in

relation to risk across the entire organisation. It

encourages this culture to be present in the entity's

decision-making processes and management,

periodically reviewing its adequacy and promoting

improvements when deemed necessary.

All employees must be fully aware of their

responsibility towards risk management. This risk

management that is not the sole responsibility of risk

experts or internal control functions. The business

units are primarily responsible for the day-to-day

management of risks in compliance with the bank's

policies, procedures and controls and will promptly

report, within or outside the bank, any cases of non-

compliance identified.

COMMUNICATION

Effective, proactive, accessible and transversal

communication on risk is actively encouraged,

promoting transparency, diversity of views, and the

escalation of alerts within a constructive

environment. CaixaBank's management assists the

governing bodies in establishing and

communicating the risk culture to the rest of the

organisation, ensuring that all members of the

organisation are aware of the fundamental values

and associated expectations in risk management, an

essential element for maintaining a robust and

coherent framework aligned with the Group's risk

profile.

In this regard, the Risk Culture project, aiming to raise

awareness of the importance of all employees in risk

management (credit, environmental, etc.) in order to

be a solid and sustainable bank, has marked a

turning point in the dissemination of the risk culture

throughout the entity. Various actions intended to

raise awareness of the risk culture among all

CaixaBank employees within the framework of this

project, by publication on the intranet, as well as

other places, of news related to risk projects.

As in previous years, during 2025, content on the

most relevant projects was published on the

intranet's risk news channel, providing general

information on risk management concepts and

activities organised for the teams, as well as

participation in various events. Approximately 80 to

90 news items have been disseminated over the

course of the year, generating reactions and

comments. Among other notable projects, updates

were provided on the assisted sale initiative—aimed

at supporting customers looking to sell their

mortgaged property—and on progress towards the

project to transform credit risk analysis functions and

tools. In addition, regular updates were provided on

the progress being made towards the Strategic Plan.

The 'virtual café' initiative continued take shape

during the period, offering thematic discussions on

various facets of risk management or other

significant organisational topics. Last but not least,

interviews with executives and other key individuals

were published to highlight their functions and roles

within the Bank. In particular, this year, visibility has

been given to those responsible for admission and

recovery in the territory.

Furthermore, the corporate risk intranets (business

and retail) comprise a dynamic environment for

directly communicating key updates in the risk

environment. They are notable for their content on

news, institutional information, sector information,

training and FAQs.

TRAINING

Skills development is driven by continuous and

quality training, tailored to the role and

competencies of each employee. Training is the

fundamental mechanism for embedding the risk

culture and ensuring that all employees have the

necessary knowledge to identify, manage and report

the risks associated with their activities. CaixaBank

fosters transversal and up-to-date training, aligned

with regulatory and business developments.

In the area of Risks, the Bank defines different training

pathways for Board/Senior Management support

functions, with specific content geared towards help

high-level decision-making, as well as the rest of the

organisation's functions, especially as regards

branch network personnel. This is carried out to

ensure: communication of the RAF throughout the

whole organisation; the decentralisation of decision-

making; the updating of risk analysis competencies;

and optimisation of risk quality.

The Group structures its training programme through

the Risk School. In this way, training is conceived as a

strategic tool designed to support business areas

while also serving as the channel for conveying the

Group’s risk culture and policies. It offers a specialist

pathway linked to professional development,

covering profiles ranging from Retail Banking to

specialists in complex risks. The training includes

modules on financial and non-financial risks, ESG

factors and is updated in line with regulatory and

business developments.

During 2025, the Risk team continued its ongoing

training, this year focusing on credit risk policies, from

their creation, presentation to committees and finally

their implementation. To this end, a specialised

course has been developed for all risk analysts, both

for those in Central Services and those deployed in

the rest of the territories.

Likewise, analysts from the regional departments

have conducted internships at Central Services to

gain in-depth knowledge on site of the risk policies

and procedures the Bank implements for all

territories.

The weekly newsletter covering risk and business

news continued to be distributed, and new sessions

of the Risk School were arranged for the entire

network.

The figures for the Group's main training initiatives in

the field of promoting risk culture are as follows:


_RISK TRAINING AND CULTURE
Course	Title	Group trained	Number of people (cumulative)
Postgraduate Diploma in Bank Risk Analysis	University diploma	Business network branch deputy managers and managers and other stakeholders who, given their role, may be involved in approving asset transactions or may require in-depth knowledge of risk	Employees certified: 2,538 retail customer employees and 1,275 corporate customer employees. 420 in progress (corporate customer employees)
Specialist training in risks for AgroBank branches	Expertise	Employees that make up the AgroBank branch network	2.165
Specialist training in risks for Private Banking branches	Expertise	Employees that make up the Private Banking network	1.032
Training in Property Credit Contract Act 5/2019	Certificate of specialisation from Pompeu Fabra University – BSM	A refresher course on the new act 5/2019 intended for employees that comprise the retail, business and risk network	30.653
Training in document compliance and data quality	Internal training	Aimed at all employees to improve awareness of risk aspects such as document integrity and the quality of data entered into the systems	27.147
Basic course on economic–financial analysis	Internal training	Intended for the retail and company centre network collective, including Welcome Business	600
Risk Management and Company Banking Circuits training	Internal training	A specific training course on risk policies and circuits continues to be developed for the group of professionals in the risk department arising from the merger with Bankia	842

² ä See section “06. Sustainability information – E – Environment – E1 – Climate change – Risk management and monitoring” of the consolidated Management

Report for more information on the risks arising from climate change for the Group’s financial position.


_RISK TRAINING AND CULTURE
Course	Title	Group trained	Number of people (cumulative)
Risk-Adjusted Return (RAR)	Internal training	This training has been completed by virtually the entire corporate customers segment and has been run continuously since 2024.	3.621
New management platform for Economic Groups	Internal training	Training during 2024 for directors, analysts and coordinators of the risk acceptance area	357
Higher course in recovery management	Advanced course in recovery management – Universidad Camilo José Cela	NPL team managers	668
Financial projection training	Internal training	Training on financial projections and sensitivity analysis for risk analysts in the regional branches, analysts at headquarters and managers in the sales area	916

Likewise, from a compliance risk perspective, training

is delivered as detailed in the consolidated

Management Report, under section “06.

Sustainability information – G – Governance –

Corporate culture and corporate culture and

business conduct policies”.

PERFORMANCE ASSESSMENT AND REMUNERATION

The Group seeks to keep the motivation of its

employees in line with the risk culture, and with

compliance of the risk levels that the Board is

prepared to take on. Thus, responsibility for risk

management will be embedded, as appropriate, in

the duties performed by employees, including their

personal goals, performance appraisal and

remuneration structures. To this end, the Risk

Management and Compliance functions

respectively ensure that the frameworks applicable

to each of the Bank's employees include aspects

that promote risk management and control in their

particular area of activity.

Without prejudice to the foregoing, for senior

management and those groups whose activities

have a significant impact on the risk profile (the so-

called “Identified Staff”), an additional ex post

adjustment applies to their remuneration schemes in

order to strengthen the linkage to risk, following

observation of performance during the year against

the main risk metrics over which they have influence,

as detailed in the Annual Remuneration Report.

3.2.5. ESG RISK FACTORS 2

Sustainability risks (ESGs) are classified into three

categories: Environmental, Social and Governance.

ESG risks encompass financial or reputational effects

stemming from traditionally non-financial factors.

There are channels of transmission from ESG risks to

credit risk and other risks in the Corporate Risk

Catalogue (business profitability, reputational,

conduct and compliance, legal and regulatory and

other operational risks) that support their treatment

as risk factors rather than as stand-alone or

independent risks. To better understand how ESG

factors affect the risks in the Catalogue, CaixaBank

has conducted a materiality analysis that

emphasises the qualitative evaluation of significant

impacts across different portfolios. Furthermore, the

qualitative analyses have been complemented by

quantitative analyses that have confirmed the

qualitative conclusions. Nevertheless, in light of the

current state of progress towards quantification

methodologies and existing data, these exercises are

expected to continue to evolve and should ultimately

produce increasingly refined results.

The climate risk materiality assessment is based on

climate change scenarios and takes into account

various time horizons. In line with supervisory

expectations and prevailing regulations, CaixaBank

has taken into account in its assessment the impact

of the physical and transition risks of the following

climate scenarios established by the Network for

Greening the Financial System (NGFS). i) orderly

transition; ii) disorderly transition; and iii) hot house

world. Out of the three scenarios identified, the

orderly transition scenario has been selected as the

base scenario for the materiality assessment, given

that it is consistent with the commitments assumed

by CaixaBank. Furthermore, this scenario is still

considered the most likely in the European Union.

In a scenario of an orderly transition, the main

impacts of climate risk relate to the long term in legal

persons' credit portfolios, whereas the impact on the

other risks from the Catalogue is lower or

circumstantial.

Following the most recent ESG risk materiality

exercise carried out in 2025, climate risk was flagged

as material in its intersection with credit risk and is

therefore included as a Level 2 risk within the broader

category of credit risk. Furthermore, climate risks

have an impact on business profitability risk,

reputational risk, conduct and compliance risk, legal

and regulatory risk, and other operational risks.

Nature-related risks also happen to have an impact

on business profitability risk, reputational risk, credit

risk, and conduct and compliance risk, although they

are not identified as material in any of these

intersections. However, the relevance of these risks in

the overall context of sustainability justifies detailed

analyses and comprehensive monitoring, even

though they are not considered material to the Bank

at this time.

The financial materiality assessment in respect of

social and governance risks found that these risks

carry a low or moderate-low level of risk for credit risk

across various portfolios, as well as for legal and

regulatory risk, reputational risk and business

profitability risk, across all time horizons and for all

risks.

Considering the proportionality principle set out in

the EBA Guidelines on ESG risks and the outcome of

the analysis of the materiality of ESG risks, priority is

given to climate risk management. In addition,

although the impact of environmental risk on the

risks included in the catalogue is not considered

material for the Bank, non-climate environmental

risks are also addressed, given the increasing

attention they receive from the Bank’s stakeholders.

The Bank’s management of risks associated with

climate change is part of the risk planning, corporate

strategic processes, risk catalogue, risk appetite

framework and risk assessment, and it is established

in the risk management policies, frameworks and

risks processes.

The Corporate ESG/Sustainability Risk Management

Policy sets out the guidelines for integrating ESG

analysis into customer onboarding, credit financing

approvals for legal entities, proprietary investments

in fixed-income and equity securities, and the

management of the equity investment portfolio.

This policy specifies general and sector-specific

exclusions for activities that could significantly affect

the environment, including issues related to climate

change and biodiversity, as well as social concerns

like human rights, where CaixaBank opts not to take

on credit risk. The general exclusions apply to all

customers, while sector-specific exclusions affect

certain activities in the energy, mining, infrastructure,

transportation, agriculture, fisheries, livestock,

forestry, defence and security sectors. This policy

undergoes annual revision to keep it aligned with

evolving regulations and expectations of

stakeholders.

For effective execution of the policy, CaixaBank has

established a centralized team of specialist analysts

who conduct customer evaluations according to

established procedures and operational guidelines.

CaixaBank also has specific controls in systems and

dashboards with key risk indicators (KRIs) to monitor

the effectiveness of the assessment processes.

3.3. TRANSVERSAL RISKS

3.3.1. BUSINESS PROFITABILITY RISK

The business profitability risk refers to obtaining

results below market expectations or the Group's

targets that, ultimately, prevent the company from

reaching a sustainable profitability level exceeding

the cost of capital.

The profitability targets, based on a financial

planning and monitoring process, are defined in the

Group's Strategic Plan, for a three-year term, and are

specified annually in the Group's budget and in the

challenges for the commercial network.

The Group has a Corporate Policy on Business

Profitability Risk Management. Management of this

risk is founded on four visions of management:

| Group vision: the overall aggregated return at

the level of CaixaBank Group.

| Businesses/Territories vision: the return from

businesses/territories.

| Financial-accounting vision: the return from

different corporate businesses.

| Commercial-management vision: the return

from the business network's management.

| Pricing vision: the return from setting prices for

CaixaBank products and services.

| Project vision: profitability of the Group's

significant projects.

The risk management strategy for business

profitability is closely integrated with the capital

adequacy and liquidity management strategy of the

Group and is supported by the strategic risk

processes (in particular, Risk Assessment and RAF).

3.3.2. CAPITAL AND SOLVENCY RISK

The risk of own funds and capital adequacy

responds to the potential restriction of the CaixaBank

Group to adapt its volume of own funds to regulatory

requirements or a change to its risk profile.

The Group has set an objective of maintaining a

medium-low risk profile and a comfortable level of

capital to strengthen its position. Capital adequacy

to cover eventual unexpected losses is measured

from two different perspectives and using different

methodologies: regulatory capital and economic

capital.

Regulatory capital is the metric required by

regulators and used by analysts and investors to

compare financial institutions. It is governed by the

European framework that incorporates Basel III,

initially through Regulation 575/2013 (CRR) and

Directive 2013/36/EU (CRD IV), adapted to Spain by

Law 10/2014 and complementary regulations.

Subsequently, reforms were introduced with CRR II

and CRD V (2019), completed in Spain in 2022. Since

then, the Basel Committee and other competent

bodies have issued additional rules on the

calculation of own funds. In 2024, further

amendments were approved (CRR III and CRD VI),

published in June and largely applicable from

January 2025, affecting credit, market and

operational risks, as well as ESG requirements.

Regulatory changes are in a state of constant

development and the Group is continuously

adapting processes and systems to ensure that the

calculation of capital consumption and deductions

from equity is fully aligned with the new

requirements.

Meanwhile, the economic capital measures the

internal criteria for own funds and capital

requirements for all risks derived from its activity. This

measure complements the regulatory vision of

capital adequacy, allows for it to better offset the risk

assumed by the Group and includes risks that have

not been factored in at all or only partially by the

regulatory measures. In this context, beyond the risks

addressed in Pillar 1 (credit, market, and operational

risks), we incorporate additional risks listed in the

Corporate Risk Catalogue. These additional risks

encompass actuarial and structural interest rate

risks, along with transversal risks like business

profitability risk, reputational risk, and model risk.

Moreover, climate risk is integrated into various risk

categories, notably credit risk. This vision is used for i)

the self-assessment of capital, subject to

presentation and periodical review in the Group’s

corresponding bodies; ii) as a control and

monitoring tool; iii) risk planning; and iv) to calculate

the Risk-Adjusted Return (RAR) and the pricing. In

contrast with regulatory capital, economic capital is

an internal estimate which is adjusted according to

the level of tolerance to risk, volume, and type of

business activity.

The Group has a Corporate Policy for Own Funds and

Capital Adequacy Risk that covers a broad concept

of own funds, including both eligible own funds under

prudential regulations and eligible instruments for

hedging MREL minimum requirements, the purpose of

which is to lay down the principles on which capital

objectives are determined in the Group, as well as to

lay down a common set of guidelines in relation to

the monitoring, control and management of own

funds that allow this risk to be mitigated, among

other aspects. Similarly, the main processes

comprising the management and control of capital

adequacy and own funds risk are as follows: i)

continuous measurement and internal and external

reporting of regulatory capital and economic capital

using relevant metrics; and ii) capital planning under

different scenarios (normal and stressed, including

ICAAP, EBA Stress Test, and Recovery Plan), included in

the corporate financial planning process, which

includes the projected balance sheet, statement of

profit or loss, capital requirements, and the Group’s

capital and solvency. All of this is accompanied by

monitoring of the capital regulations applicable at

present and over the coming years.

For further information on the risk management of

own funds and capital adequacy (ä see Note 4 –

Capital adequacy management).

3.3.3. MODEL RISK

In the Corporate Model Risk Management Policy,

model risk is defined as the possible adverse

consequences for the Group that may arise from

decisions founded chiefly on the results of models,

due to errors or biases in their design, construction,

application or use.

In particular, the sub-risks identified under model risk

that are subject to management and control are as

follows:

| Methodological risk: shortcomings in model

building due to the methodology used

(methodological choice, accuracy of

assumptions made, stability or sensitivity and

performance results) or model obsolescence.

| Risk of integration into management:

inappropriate use of the model and reporting of

its results.

| Technology implementation risk: insufficient or

defective quality and robustness of information

and defects in the implementation of the model

in systems.

| Replicability risk: defects or deficiencies in the

documentation associated with the model

making it impossible to replicate or trace.

The general model risk strategy is based on the

following pillars:

| Identification of the model risk, using the

Corporate Inventory of Models as a key element

to set the scope of the models. In order to

manage model risk, it is necessary to identify

existing models, their quality and the use made

of them in the Group. This is why the CaixaBank

Group has such an Inventory, which identifies the

models and uses a homogeneous taxonomy

that includes, in addition to other attributes, their

relevance and the assessment of their quality

and the risk assumed by using them.

| Governance and model control framework,

addressing key issues such as:

| The identification and definition of the most

relevant phases of the model lifecycle and

the definition of roles and responsibilities in

the model risk management framework.

| The concept of model risk management, i.e.

the way in which the control framework of

the models can be modulated according to

the importance of the models within the

company's or group's operational processes.

| The definition of standards for the

governance of the models, so that changes

or evolutions of these are traceable and are

governed under homogeneous standards

(approval by competent bodies, roles and

responsibilities) that offer the different

owners the necessary flexibility and agility to

change the affected models in compliance

with current regulations.

| The definition of monitoring standards for

model owners so that they give their opinion

in a recurrent, homogeneous and

comparable way.

| The definition of internal validation standards

to ensure the issuance of consistent and

comparable opinions for monitoring

purposes, together with the proper

application of controls for model validation

by an independent unit.

| To ensure compliance with the guidelines

associated with the model life cycle, carry

out the necessary controls for the proper

management of model risk, and report to the

relevant bodies in the event of material

breaches.

| Monitoring, which addresses key issues such as:

| Follow-up: with a forward-looking approach

to model risk that enables it to be kept within

the parameters defined in the Group’s risk

appetite framework, through the periodic

calculation of RAF metrics and other model

risk–specific indicators (KPIs).

| Ongoing review of the currency of the level 2

risks in the Corporate Risk Catalogue into

which model risk is broken down and use of

metrics at a granular level to enable

measurement and monitoring of these level

2 risks with a forward-looking approach.

| Proposal and monitoring of mitigating

actions and action plans for model risk

management.

| Periodic exercise to assess the model risk

(Risk Assessment) assumed by the Group.

In 2025, the governance of models has been

expanded, preparing for the inclusion in 2026 of

those with artificial intelligence (AI) components. This

change has required adapting the model risk tool,

both in terms of inventory and functionality, to

capture key elements of AI. In addition, the Corporate

Model Risk Management Policy and its reference

framework have been updated, notably including the

improvements made to the model risk rating. This will

allow for greater sensitivity to the relevance and

inherent risk of models and will facilitate the

adaptation of management as the number and

range of models in the corporate inventory increase.

With regard to the Validation function, highlights

included the move towards greater automation in

generating reports, covering an increasingly broad

range of models. This progress has made it possible

to generate additional value added and enhance

the depth of review, contributing to the completion

of 2025 with the issuance of 100 % of the opinions

planned for the year.

3.3.4. REPUTATIONAL RISK

Reputational risk is defined as the potential

economic loss or lower revenues for the Group as a

result of events that negatively affect stakeholders'

perception of the CaixaBank Group.

Some of the risk areas identified by the Group in

which this perception could worsen include, among

others, inadequate product design and marketing,

poor customer service, inappropriate

communication, operational or technological

failures, non-compliance with new regulations or

regulatory standards, or a lack of integration of ESG

factors into the business, including climate change,

talent development, work-life balance, diversity and

occupational health.

The Group has a Corporate Reputational Risk

Management Policy, based on the three lines of

defence model, which defines the principles

governing the prevention, management and control

of this risk. It covers the regulatory framework, action

principles and strategy governing reputational risk

management, governance framework, control

framework and functions, as well as the reporting

and disclosure framework for this risk. Its scope

covers all CaixaBank Group companies.

Specifically, the Group's reputational risk

management and control strategy includes:

| The regular identification and assessment of

reputational risks, for which there is a specific

taxonomy and regular assessment and analysis

processes (half-yearly risk assessment, review of

the Corporate Risks Catalogue, regular analysis

of perceptions and social sensitivity,

identification of crisis milestones, studies and

market benchmarks).

| Management and prevention policies and

procedures which include, in addition to the

creation of the aforementioned policy, the

development of a culture of reputational risk in

all the Group's companies , the regular

assessment of the control environment with all

the transversal divisions and internal procedures

for managing reputational crises with detection

protocols, severity scales and actions to mitigate

or eliminate potential negative effects.

| Reputation management and enhancement

through the use of communication channels

and dialogue with stakeholders, analysing

business transactions from this perspective, and

developing communication initiatives that

strengthen the visibility and recognition of

corporate values among stakeholders.

| The monitoring and control of risk through both

internal and external indicators that measure

stakeholders’ perceptions and expectations, RAF

reputation metrics, reviews of the control

framework, compliance with standards, and the

development of periodic systems for risk control

and mitigation. In addition, the second and third

lines of risk defence conduct regular reviews of

the risk management and control environment.

| Lastly, regular reporting to the governing bodies,

to the Bank’s Senior Management, as well as to

the supervisors, for informed decision-making in

this area.

3.4. FINANCIAL RISKS

3.4.1. CREDIT RISK

OVERVIEW

Credit risk corresponds to a decrease in value of the

Group's assets due to uncertainty about a

customer's ability to meet its obligations to the

Group. Includes the risk generated by transactions in

the financial markets (counterparty risk). This

includes the most significant risk item from the

Group's financial activity, based on banking and

insurance commercial activity, treasury transactions

and long-term equity investments (equity portfolio).

The maximum exposure to credit risk is the gross

carrying amount, except in the case of derivatives,

which is the exposure value according to the mark-

to-market method, which is calculated as the sum of:

| Current exposure: the highest value between

zero and the market value of a transaction or of

a portfolio of transactions in a set of transactions

that can be offset with a counterparty that

would be lost in the event of non-payment of the

counterparty, assuming that none of the value of

the transactions will be recovered in the event of

insolvency or settlement beyond the collateral

received.

| Potential risk: variation of the credit exposure as

a consequence of the future changes of the

valuations of transactions that can be offset with

a counterparty during the residual term until

maturity.

The maximum credit risk exposure of the financial

instruments included under the financial instruments

headings on the asset side of the balance sheet,

including counterparty risk, are set out below:


_MAXIMUM EXPOSURE TO CREDIT RISK
(Millions of euros)
				31-12-2025		31-12-2024		31-12-2023
			Note	Maximum exposure	Impairment allowances	Maximum exposure	Impairment allowances	Maximum exposure	Impairment allowances
Cash and cash balances at central banks and other demand deposits			10	43,316		47,402		35,443
	Cash balances at central banks			42,140		45,955		33,704
	Other demand deposits			1,176		1,447		1,739
Financial assets held for trading			11	1,421		821		649
	Equity instruments			641		415		303
	Debt securities			780		406		346
Non-trading financial assets mandatorily at fair value through profit or loss			11	21,320		17,248		13,385
	Equity instruments			21,318		17,248		13,385
	Debt securities			2
Financial assets designated at fair value through profit or loss			11	5,698		6,498		7,240
	Debt securities			5,698		6,498		7,240
Financial assets at fair value through other comprehensive income			11	71,182		68,767		66,590
	Equity instruments			611		579		1,340
	Debt securities			70,571		68,188		65,250
Financial assets at amortised cost			11	485,440	(6,344)	453,495	(6,705)	444,535	(7,354)
	Debt securities			88,944	(20)	80,060	(19)	80,940	(24)
	Loans and advances			396,496	(6,324)	373,435	(6,686)	363,595	(7,330)
		Credit institutions		14,850	(6)	14,958	(8)	11,893	(11)
		Customers		381,646	(6,318)	358,477	(6,678)	351,702	(7,319)
Trading derivatives and hedge accounting (1)				3,569		3,437		2,982
Assets under reinsurance contract			14	60		53
TOTAL ACTIVE EXPOSURE				632,006	(6,344)	597,721	(6,705)	570,878	(7,354)
Guarantees given and contingent commitments (2)				175,112	(416)	167,270	(422)	159,585	(446)
TOTAL				807,118	(6,760)	764,991	(7,127)	730,463	(7,800)
(1) For the purpose of comparison with the different credit risk exposure openings based on the accounting procedures for the preparation of the financial statements, the credit risk exposure of the derivative positions in this table has been determined in accordance with the provisions of Article 274 of the Regulatory Capital Regulation (CRR) on an offsetting group basis.
(2) CCFs (Credit Conversion Factors) for guarantees given and credit commitments amounted to 131,822 million, 107,769 million and 104,600 million euros at 31 December 2025, 2024 and 2023, respectively.

CREDIT RISK CYCLE LINKED TO BANKING AND OTHER

ACTIVITIES

The Group gears its lending activity towards meeting

the finance needs of households and businesses

and providing value-added services, within the

medium–low risk profile set as a target in the RAF.

The Corporate Credit Risk Management Policy,

approved by the Board of Directors, establishes the

general framework and basic principles consistent

with the Group's overall risk appetite and strategy

and effective risk management at each stage of the

credit risk management cycle.

The full credit risk management cycle covers the

entire life of the transaction, from feasibility studies

and the approval of risks as per established criteria,

to monitoring solvency and returns and, ultimately, to

processing and recovering non-performing assets.

Thus, the principles set out in the Corporate Credit

Risk Management Policy serve as a reference and

minimum standard in the identification, assessment,

approval, monitoring and mitigation of credit risk, as

well as the criteria for quantifying the coverage of

expected credit risk losses, both for accounting and

capital adequacy purposes.

The main principles and policies governing credit risk

management in the Group are as follows:

| The credit risk management policy and strategy,

as well as the frameworks and limits for

controlling and mitigating this risk, are integrated

and consistent with the overall risk strategy and

appetite.

| Clear definition and allocation of responsibilities

to the different areas participating in the cycle of

granting, managing, monitoring and controlling

credit risk, in order to guarantee effective

management of this risk.

| The business lines and units that generate credit

risk are primarily responsible for managing the

credit risk generated by their activities

throughout the credit life cycle. Such business

lines and units have adequate internal controls

to ensure compliance with internal policies and

applicable external requirements. The risk

management function is responsible for

assessing the adequacy of these controls.

| Strict independence is maintained between the

areas comprising the Credit Risk Underwriting

and Monitoring Department and the business

units (commercial areas). Likewise, the Risk

Management and Compliance Division

maintains the same principle of independence

from the business units, as well as from the

Credit Risk Underwriting and Monitoring Division.

| As a general rule, lending is based on the

borrower’s repayment capacity, offering

customers financing solutions that best meet

their needs. Guarantees, whether personal or in

rem, do not replace a lack of repayment

capacity or an uncertain purpose of the

transaction, with the exception of those cases in

which, due to the special nature of some

financing products, the structure of the

transaction is based precisely on the guarantee.

| An adequate assessment is conducted both on

guarantees and assets received in payment of

debt.

| The pricing system is adjusted to the risk

assumed in the transactions, in such a way as to

ensure the appropriate relationship of the risk/

profitability duality and in which the guarantees

act as a mitigation element, especially in long-

term transactions.

| The development of internal models for rating

exposures and borrowers, as well as to measure

risk parameters for the purposes of consumption

of regulatory capital or provisions, ensures the

establishment and standardisation of key

aspects of these models according to a

methodology adapted to suit the characteristics

of each portfolio.

| There is an independent system of internal

validation and regular review of credit risk

models used for both management and

regulatory purposes, for which materiality criteria

are applied.

| There is a monitoring framework that ensures

that information on credit risk exposures,

borrowers and collateral are relevant and kept

up-to-date throughout the life cycle of credit

exposures, and external reports are reliable,

complete, up-to-date, and drawn up within the

established time limits.

| Accounting classification criteria of transactions

and for the quantitative assessment of expected

losses and capital requirements for credit risk

that accurately reflect the credit quality of the

assets.

| The recovery process is governed by the

principles of anticipation, objectivity,

effectiveness, and customer orientation. The

recovery circuit has been designed in such a

way as to be articulated based on early

detection of the possibility of default and

appropriate measures have been provided for

effectively claiming debts.

The policies, frameworks, procedures or

methodologies that are developed from this policy:

| They take into account the principles of

responsible lending and therefore the lending

criteria consider each borrower's specific

situation, needs, interests and specific financial

capacity, in order to avoid causing undue

hardship or over-indebtedness.

| They take into account environmental, social and

corporate governance factors, reputational risk

and related risks, adopting a holistic approach.

| They are designed to minimise the risk of internal

or external fraud.

| They cover all lending activities, asset classes,

customer segments, products and specific

credit instruments, as well as credit risk

management practices, associated

responsibilities and controls, with a level of detail

commensurate with the size, degree of

complexity and risk profile of the different market

segments related to lending activities.

| They set out the criteria for the approval of credit

transactions and decision-making, establishing

authorisation levels consistent with the defined

risk appetite and limits; the requirements for

creditworthiness assessment, exposure

aggregation, the acceptance and use of

collateral or risk mitigating, the proper

documentation of decisions taken, and the

treatment of overruns or exceptions.

| They specify the monitoring requirements for

lending activities, including the classification of

transactions and the estimation of coverage, as

well as the actions to be taken in the event of

non-payment.

| They feature control mechanisms with measures

to avoid incurring unacceptable risks.

Approval and granting

The underwriting function is the first step in the credit

risk management process, and the application of

rigorous methodologies in the application, analysis

and granting processes will largely determine the

successful repayment of exposures. The process is

based on an analysis of the creditworthiness of the

parties involved and the characteristics of the

transaction. The empowerment system assigns

approval levels to specific employees, corresponding

to the standard level of responsibility defined for

each position.

According to the risk of the transactions

Analysis according to the following characteristics:

1. Borrower: analysis based on internal knowledge of the customer, information requested from the customer and its

profitability.

2. Guarantee: group of assets and/or funds pledged to secure fulfilment of a repayment obligation.

3. Deadline: transaction duration, which must relate to its purpose.

4. Amount: calculation of the accumulated risk for each of the title holders of the transaction and their economic group.

Depending on the segment, the following is defined:

Product-weighted loss: based on the expected loss. This is used when the principal borrower is a legal person.

Nominal: This includes the nominal amount and collateral. It applies to individuals.

Other characteristics taken into consideration: aspects such as the rate of effort, monitoring alerts and ratings, and

belonging to certain sectors (i.e.: ESG risks, for which the Environmental Risk Report is needed to determine compliance

with the Corporate Policy on sustainability/ESG risk management) or concentration limits.

Board of Directors

Transaction approval levels: subject to

the following signatures: business-

business or business-risks

Executive Committee

Standing Loan Committee

Specialised Corporate Service centres

Corporate risks

Company risk

Property developer risk

Commercial real estate risk

Tourism and agri-food risk

Project Finance

Institutional banking

Financial sector and country risk

Specialised centres: Risk Approval Centre

Personal Loan Approval Centre (CARP): For individuals and the self-

employed, centralised in Corporate Services.

Risk Approval Centres (CAR): for legal entities, distributed throughout the

territory

Commercial network: it will resolve requests that require approval

levels within its powers; in general, with business-to-business

signature concurrence.

Approval by a business manager and a risk manager.

If the level of risk required

exceeds the applicant centre's

remit, the request will be

passed on to a higher level.

According to the pricing of the transactions

Analysis in terms of the costs associated with the transaction, which are essentially the following: Structure costs,

financing costs and risk costs.

The transactions must provide a minimum contribution to capital requirements, which will be calculated net of tax.

It is analysed using pricing tools and RAR (Risk-Adjusted Return).

Transaction approval levels:

In the business divisions, subject to a system of powers aimed at obtaining a minimum remuneration and,

additionally, at establishing margins according to the different businesses.

In order to ensure an adequate level of protection of

the banking service customer, there are policies,

methods and procedures for studying and granting

loans, or responsible lending, as required in Act 2/2011

on Sustainable Economy and Order EHA/2899/2011 on

transparency and protection of customers of

banking services, or the more recent Property Credit

Contract Regulatory Act 5/2019, of 15 March.

Mitigation of the risk

The Group’s credit risk management profile is

characterised by a prudent approvals policy, at a

price in line with the conditions of the borrower and

adequate coverage/ guarantees. In any case, long-

term transactions must have more robust

guarantees due to the uncertainty deriving from the

passing of time. These guarantees should never be

used to substitute a lack of repayment capacity or

an uncertain outcome for the transaction.

For accounting purposes, effective guarantees or

collateral are collateral and personal guarantees

that can be demonstrated as valid as risk mitigators,

according to: i) the amount of time required for their

enforcement; ii) the ability to realise the guarantees;

and iii) the experience in realising the same. The

different types of guarantees and collateral are as

follows:

| Personal guarantees or those constituted due to

the solvency of holders and guarantors: most of

these relate to risk transactions with companies

in which the collateral provided by the

shareholders, irrespective of whether they are

individuals or legal entities, is considered

relevant. For individuals, collateral is estimated

on the basis of asset declarations. Where the

backer is a legal entity, it is analysed as the

borrower for the purposes of the approval

process.

| Collateral, main types:

| Pledged collateral: they notably include the

pledge of liability transactions or

intermediate balances. To be admitted as

collateral, financial instruments must, among

other requirements: i) should be

unencumbered, ii) its contractual definition

should not prevent it from being pledged

and iii) its credit quality should not be

related to the holder of the loan. The pledge

remains in place until the loan matures, it is

repaid early, or it is derecognised.

| Mortgage guarantees on properties. A real

right on immovable property given as

security for an obligation, on which,

according to internal policy, the following is

established:

| The procedure for approval of

guarantees and the requirements for

arranging transactions, such as the

documentation that must be supplied by

the holders and the mandatory legal

certainty of this documentation.

| The review processes for the appraisals

registered, in order to ensure proper

monitoring and control of the

guarantees. Regular processes are also

carried out to test and validate the

appraisal values to detect any

anomalies in the procedures of the

appraisal entities acting as Group

suppliers.

| The outlay policy, mainly concerning real

estate development and self-

development arrangements.

| The loan-to-value (LTV) of the

transaction. The capital to be granted in

mortgage transactions is limited to

percentages of the value of the

guarantee, which is defined as the

lowest of the appraisal value and the

value shown on the official deed or the

accredited value of the property. IT

systems calculate the level of approval

required for each type of transaction.

| Credit derivatives: guarantors and counterparty.

The Group occasionally uses credit derivatives

arranged with entities with a high credit level

and protected by collateral contracts, to hedge

against credit risk.

A breakdown of the guarantees received in the

approval of the Group's lending transactions

corresponding to its banking activity and other is

provided below, specifying the maximum amount of

the collateral that can be considered for the

purposes of calculating impairment: the estimated

fair value of property according to the latest

appraisal available or an update on the basis of the

provisions of applicable regulations in force. In

addition, the remaining collateral is included as the

current value of the collateral that has been pledged

to date, not including personal guarantees:


_CATEGORISATION BY STAGE OF THE CREDIT INVESTMENT AND AFFECTED GUARANTEES *
(Millions of euros)
	31-12-2025			31-12-2024			31-12-2023
	Gross amount	Provision	Collateral value **	Gross amount	Provision	Collateral value **	Gross amount	Provision	Collateral value **
Stage 1	346,241	(676)	400,650	323,235	(688)	392,348	311,016	(660)	396,629
Unsecured loans	183,485	(574)		168,555	(556)		159,262	(533)
Real estate mortgage secured	158,798	(95)	392,832	150,893	(124)	385,285	147,868	(121)	389,515
Other collateral	3,958	(7)	7,818	3,787	(8)	7,063	3,886	(6)	7,114
Stage 2 + POCI w/o impairment	24,908	(861)	38,309	23,346	(938)	32,907	28,804	(1,165)	35,403
Unsecured loans	9,600	(597)		9,733	(495)		13,038	(664)
Real estate mortgage secured	15,000	(256)	37,556	13,341	(432)	32,389	15,487	(492)	34,912
Other collateral	308	(8)	753	272	(11)	518	279	(9)	491
Stage 3 + POCI with impairment	8,120	(4,779)	8,972	9,693	(5,047)	10,720	10,035	(5,490)	10,963
Unsecured loans	3,956	(2,789)		4,099	(2,527)		3,990	(2,649)
Real estate mortgage secured	4,115	(1,953)	8,938	5,499	(2,415)	10,674	5,921	(2,748)	10,911
Other collateral	49	(37)	34	95	(105)	46	124	(93)	52
TOTAL	379,269	(6,316)	447,931	356,274	(6,673)	435,975	349,855	(7,315)	442,995
(*) Includes loans and advances to customers from “Financial assets at amortised cost” (Note 1 1).
(**) It reflects the maximum amount of the effective collateral that can be considered for the purposes of the impairment calculation, i.e. the estimated fair value of real estate properties based on their latest available valuation or an update of that valuation based on the applicable standard in force. In addition, the remaining collateral is included as the current value of the collateral that has been pledged to date, not including personal guarantees:

On the other hand, counterparty risk mitigation measures are specified at the end of this section.

³ The different categories of monitoring rating are:

|Insignificant risk: all customer transactions are performing correctly and there are no indications that call the repayment capacity into question.

|Low risk: the payment capacity is adequate, although the customer or one or more of their transactions shows some minor indication of weakness.

|Medium risk: there are indications of customer impairment, nonetheless, these weaknesses do not currently put at risk the debt repayment capacity.

|Medium-high risk: the customer's credit quality has been seriously weakened, although there is no objective evidence of impairment. Further impairment could

result in default.

|Non-performing: there is objective evidence of sustained impairment or non-performance as regards the customer capacity to meet their obligations.

|No rating: there is insufficient information to assign a monitoring rating.

Monitoring and measurement of credit risk

The Group has a monitoring and measurement system to guarantee coverage for any borrower or transaction

through methodological procedures adapted to the nature of each obligor and risk:

Defining the accounting

classification

Borrower monitoring processes

Defining the accounting

provision

Quantifying and assessing

credit risk

Staging: assessment of

the existence of SICR

and default

Based on the expected

loss

Scope

Rating methodology

Monitoring

Individualised

SINGLE NAMES (SN)

Borrowers that, due to

their exposure volume

or associated risk,

require customised

and expert treatment.

SN file and continuous

and proactive

management

through triggers.

MAJOR RISKS

By economic group of

borrowers

1. General portfolio

Exposure > 300 million euros

Exposure <= 300 million

euros, but with a

component of the group

classified under SN High

Risk* or with non-performing

loans **

Calculation of the

provision based

on expert opinion

MANUAL

Expert allocation of

the monitoring

rating for each

borrower.

2. Specialised financings

Exposure > 50 million

euros

Exposure <= 50 million

euros, but with a

component of the group

classified under SN High

Risk* or with non-

performing balances **

OTHER (NON-SN)

Classification

through automatic

processes.

There is alignment

between the

monitoring rating

and accounting

classification.

Monitoring

Coverage

determined

through statistical

models based on

the Group’s

experience and

forecasts of

relevant variables.

3. Public sector and

financial entities

Monitoring

Collective

OTHER TRANSACTIONS/

BORROWERS

AUTOMATIC

Model based on

statistical patterns,

(Early Alert Model, EAM),

the PD calibrated with a

forward-looking view

and other relevant

alerts.

* SN High Risk: Borrowers with total exposure of more than 10 million euros for two consecutive months or exceeding 12 million euros per month, with

certain weaknesses: i) >>arrears of more than 45 days; ii) refinancing; iii) balance sheet deterioration; iv) high PD; v) adverse rating; vi) arrears with

other institutions; vii) a current monitoring classification of medium risk or worse; and viii) project finance exposures with a DSCR below 1.05x or

deviations of more than 15 % between actual and projected revenues.

** Borrowers with total exposure > 5 million euros, of which more than 5 % of the total is classified as non-performing.

Borrower monitoring processes

The aim is to determine the quality of the risk

assumed with the borrower (“Monitoring Rating”) and

actions that need to be taken according to the result,

including the estimation of impairment. The targets

of risk monitoring are the borrowers that hold the

debt instruments and off-balance sheet exposures

that bear credit risk, and the results are a yardstick

guiding future underwriting policy.

The Credit Risk Monitoring Policy is prepared based

on the type and specific nature of the exposure,

segregated into differentiated areas, in accordance

with the various credit risk measurement methods.

The Monitoring Rating is an assessment of each

customer’s situation and risks. Each borrower has an

associated monitoring rating that classifies them

into five categories, 3which are, from best to worst:

insignificant risk, low risk, moderate risk, moderate-

high risk or non-performing; and they can be

generated manually (in the case of the scope of

borrowers under individualised monitoring) or

automatically (for all others).

⁴ Aside from those borrowers, exposures classified as low credit risk will also require an individual estimation of credit risk losses where they are deemed to be non-

performing, despite being considered to involve no appreciable risk. Applying materiality criteria, the individual estimate of expected losses will be performed whenever

a borrower represents an exposure of more than > 1 million euros and more than > 20 % of that exposure is considered non-performing.

According to the scope of monitoring and rating

relating to the borrowers, monitoring can be:

| Individualised: applied to exposures of a

significant amount or that have specific

characteristics. The monitoring of major risks

leads to the issuance of group monitoring

reports, concluding in a monitoring rating for the

borrowers in the group.

The Group defines individually significant

borrowers (Single Names) as those that meet the

following thresholds or characteristics 4:

| Borrowers with an exposure greater than 10

million euros for two consecutive months or

greater than 12 million euros for one month,

meeting at least one of the following criteria:

| having been refinanced (refinanced risk

greater than 5 % of total risk),

| early non-performing loans (defaults in

excess of 45 days),

| with a restrictive approval preventive

plan,

| with an unfavourable rating,

| with a high PD (or Slotting equal to or

worse than Weak if they belong to

Specialised Financing segment),

| with a current monitoring rating of

medium risk or lower,

| with balance sheet impairment,

| with defaults in other entities,

| belonging to the Specialised Financing

segment and maintaining a debt service

coverage ratio of under 1.05 or with

deviations of more than 15 % of actual

revenues compared to projected

revenues or if the project is in the

process of being restructured.

| Exposure of greater than 5 million euros with

non-performing transactions (objective or

subjective) representing more than 5 % of

the total risk of the borrower.

| Borrowers not segmented as Specialised

Lending with an exposure greater than 30

million euros for two consecutive months, or

greater than 36 million euros for one month

that belong to a group with a risk greater

than 300 million euros or a group with a risk

below 300 million euros with a component

identified as Single Name in one or other of

the two points previously mentioned.

| Borrowers segmented as a Specialised

Lending with a total exposure greater than

50 million euros.

| Collective: ratings are obtained using a

combination of a specific statistical model

known as the Early Warning Model (EWM), the

probability of default (PD) , rated with a forward-

looking vision (in line with that used in the

calculation of credit risk coverage) and various

significant alerts. Both the EWM and the PD are

updated with a minimum monthly frequency;

daily in the case of alerts.

In addition, MAT and PD models are subject to the

Corporate Policy on Regulatory Approaches and

Credit Risk Models.

Quantification and rating of credit risk

Credit risk quantifies losses that might derive from

failure by borrowers to comply with their financial

obligations, based on two concepts: expected loss

and unexpected loss.

| Expected Loss (EL): This is the average or

mathematical expectation of potential

anticipated losses calculated by multiplying the

three following factors: probability of default (PD),

exposure (EAD for exposure at default) and

severity (LGD for loss given default).

| Unexpected loss: potential unforeseen loss

caused by variability in losses with respect to the

estimated expected loss. It can occur due to

sudden changes in cycles or alterations in risk

factors, and the dependence between the credit

risk for the various debtors. Unexpected losses

have a low probability and large amount, and

should be absorbed by the Group's own funds.

The calculation of unexpected loss is also mainly

based on the transaction's PD, EAD and LGD.

Credit risk parameters are estimated based on the

historical default experience. To do so, the Bank has a

set of tools and techniques for the specific needs of

each type of risk, described below according to how

they affect the three factors for calculating the

expected loss:

| EAD: an estimate of the outstanding debt in the

event of default by the customer. This

measurement is significant for financial

instruments with a repayment structure that

varies according to customer drawdowns (in

general, any revolving credit product).

The estimate is based on observing internal

default experience, relating the drawdown levels

upon default to drawdown levels over the 12

preceding months. To build the model, several

variables are considered, such as product type,

term to maturity and customer characteristics.

| PD: the Group has management assistance tools

to predict the probability of default (PD) of each

borrower that covers practically all of the lending

activity.

These tools, implemented in the branch network

and the risk monitoring and granting channels,

were developed on the basis of NPL experience

⁵ ä See Note 2.7, in reference to the fact that sales of exposures with a significant increase in credit risk do not compromise the business model of holding assets to

receive contractual cash flows.

⁶ ä See Note 24.3, detailing the sales of the non-performing and written-off loan book.

⁷ ä See Note 2.7.

and include the measurements required to fine-

tune the results both to the business cycle, with a

view to securing relatively stable measures in the

long term and to recent experience and future

projections. The models can be classified

according to their orientation toward the

product or customer:

| Product-oriented tools are used mainly

within the scope of authorisation of new

retail banking transactions (approval

scorings) and take into account the debtor’s

characteristics, information deriving from

the customer relationship, internal and

external alerts, as well as the specific

characteristics of the transaction to

determine the probability of default. An

advanced machine learning methodology is

used for its estimation.

| Customer-oriented tools assess the debtor’s

probability of default. They are integrated by

performance scorings to monitor the risk of

individuals and by company ratings. Rating

tools for companies vary considerably

according to the customer segment.

| In particular, for micro-enterprises, SMEs

and SME property developers, an

advanced machine learning

methodology is also used.

| In the case of large companies, the

Group has models that require the

expert judgement of analysts and whose

objective is to replicate and be

consistent with the ratings of rating

agencies.

Customer scorings and ratings are updated

monthly to keep the credit rating up-to-date,

with the exception of the large company rating,

which is updated with a minimum annual

frequency or in response to significant events

that could affect credit quality. As for legal

entities, regular actions are carried out to

update financial statements and qualitative

information in order to achieve the maximum

level of coverage of the internal rating .

| LGD: quantifies the unrecoverable debt in the

event of customer default.

The historic loss given default is calculated using

internal information, taking into account the

cash flows associated with contracts from the

moment of default. These models also throw up

severity based on the collateral, the relationship

of the amount of the loan with the value of the

collateral (LTV or Loan to Value), product type,

the borrower’s creditworthiness and, where

required by legislation, the recessionary phases

of the economic cycle. An estimate is also made

of the indirect expenses (office staff,

infrastructure costs and similar) associated with

the recovery process.

It should be highlighted that the Group considers

through the severity of the income generated

from the sale of breached contracts as one of

the possible future flows generated to measure

the expected losses from the impairment of the

loan value. This income is calculated on the basis

of the internal information of the sales carried

out by the Group 5. The sale of these assets is

considered to be reasonably predictable as a

method of recovery, thus, as part of its strategy

for reducing non-performing balances, the

Group considers portfolio sales as one of the

recurring tools. In this sense, there is an active

impaired debt market that ensures with high

probability the possibility of generating future

debt sale transactions 6.

In addition to regulatory use to determine the

Group’s minimum capital requirements and the

calculation of provisions, the credit risk parameters

(PD, LGD and EAD) are used in a number of

management tools, such as in the risk-adjusted

return calculation tool, the pricing tool, the customer

pre-qualification tool, monitoring tools and alert

systems.

Determination of accounting classification

The accounting classification among the different

stages of IFRS 9 7 of transactions with credit risk is

determined by the occurrence of events of default,

impairment of the customer's ability to pay and, in

short, by the set of criteria described in Circular

4/2017 and in the EBA GL/2016/07 guide on the

application of the definition of default.

Generally, loan origination transactions will initially be

categorized as Stage 1. Their classification will shift to

Stage 2 or 3 if there are events of default or

Significant Increases in Credit Risk (SICR) since the

transaction was first recognised.

A SICR shall be deemed to have occurred since initial

recognition and such transactions shall be classified

as stage 2, when weaknesses are present that could

lead to losses significantly in excess of those

expected at the time of origination. To identify it, the

Group relies on the monitoring and rating processes

described in .

Transactions in stage 1 or 2 can also be classified as

stage 3 when additional default criteria are met or if,

under an individual or collective analysis, there is

reasonable doubt as to the ability to pay or there is

credit impairment of the transaction or borrower.

The set of classification criteria is described below:

Stage 3

Stage 2

Amounts past due by >90 days exceeding

materiality thresholds, evaluated at

transaction level for individuals and at

customer level for legal entities. For individuals,

the entire customer is impacted when amounts

overdue >90 days exceed 20 % of the total

exposure

Transactions with

past due amounts

Amounts overdue by more than 30

days

Transactions of the

holders in insolvency

proceedings with no

liquidation petition

If at least 25 % of the insolvency claims have

been paid, or two years have elapsed since

the insolvency proceedings were filed with

the Companies Registry.

Does not meet the conditions of stage 2

Refinancing, refinanced or restructured

transactions classifiable as non-performing

according to fixed criteria set forth in Note 2.8

– Refinancing transactions

Refinanced or restructured transactions that

should not be reclassified as non-performing

and that are still in the trial period

Refinanced/

restructured

transactions

Overall alerts: Financial difficulties of the client, breach of contractual clauses, etc.

Single

Names –

individual

review

Market alerts (external ratings)

Specific alerts (sector)

In the case of borrowers with large

exposures that are monitored but do not

meet the criteria to be classified as Single

Names, if after an individual review there are

doubts about their repayment

Deterioration of the rating: the borrower has

decreased their rating to a moderate risk or

worse since the transaction's initial

recognition. Or its current rating is medium-

high risk or worse.

Other transactions

Rest of

portfolio –

collective

and

individual

review

Similarly, for other transactions, if collective

reviews reveal difficulties and uncertainties

regarding repayment capacity

Its current lifetime PD exceeds 20 % or shows a

relative increase in PD:

The annualized lifetime PD is greater than 0.3

The current lifetime PD is three times higher

than the estimated lifetime PD at the start of

the contract.

Transactions in the probationary period:

which in the last three months have been

classified in stage 3 and are past due by

less than 30 days

Defining the accounting provision

The aim of the IFRS 9 requirements as regards

impairment is to ensure recognition of the expected

credit losses of transactions, assessed collectively or

individually, considering all the reasonable and

substantiated information available, including

forward-looking information.

Principles for measuring expected credit losses for

the purpose of defining the credit risk loss coverage

The calculated accounting hedging or provision is

defined as the difference between the gross carrying

amount of the transaction and the estimated value

of future expected cash flows, discounted at the

original effective interest rate of the transaction,

considering the effective guarantees received.

The Group estimates the expected credit losses of a

transaction so that these losses reflect the following:

| a weighted and non-biased amount, determined

through the assessment of a series of possible

results;

| the time value of the money; and

| the reasonable and substantiated information

available at the reference date, without incurring

disproportionate cost or effort, about past

events, current conditions and predictions of

future conditions.

⁸ The existence of collateral, particularly for individualised analysis, is not used for the assessment of the credit quality of borrowers, although, for activities closely

related to collateral such as real estate development, the decrease in the value of such collateral is analysed to assess the increase or deterioration of the borrower's

risk.

The collective analysis of the automatic rating is generated from the combination of a rating by (i) risk models and (ii) rating by alerts. Considering that the Bank’s

policy in relation to asset transactions follows the criterion of customer repayment, and not recovery via the allocation of guarantees, the collective analysis is focused

on assessing the credit quality of borrowers and not the collateral provided. In this regard, the main guarantees (or collateral) of the Group are mortgage-related, with

no significant value fluctuations that could be considered evidence of a significant risk of credit risk in mortgages.

⁹ As indicated, the analysis of the Single Names portfolio is carried out on an individual basis for all exposures, with the stage determined using expert judgement for

each of the instruments analysed, based on knowledge of the borrowers and experience. When required, the coverage calculation also uses this individualised

approach.

The credit loss of the instruments of the portfolio that are monitored individually, and which are classified individually in stage 1, is calculated collectively on the basis of

the knowledge of the borrowers and experience. This way of estimating expected losses would not have led to material differences in their totality, compared with an

estimate using individual estimates. This is due to the fact that, in general, the information to be considered in performing the collective calculation would have been

equivalent to that used for individual estimates.

In line with applicable rules, the coverage calculation

method is set according to whether the borrower is

individually significant and its accounting category 8.

| If, in addition to being individually significant, the

customer has transactions that are non-

performing (whether for reasons of delinquency

or for other reasons) or in stage 2 9, the specific

allowances for the non-performing transactions

will be estimated through a detailed analysis of

the borrower's status and their capacity to

generate future flows.

| In all other cases, coverage is estimated

collectively using internal methodologies, subject

to the Corporate Policy on Regulatory

Approaches and Credit Risk Models in force,

based on own historical experience of portfolio

defaults and recoveries and taking into account

the discounted and adjusted value of effective

collateral. Additionally, future economic

condition predictions will be considered under

various scenarios.

To establish coverage for credit losses on

portfolios using group analysis, models to

estimate PD are used; in addition to models to

assess the probability of rectification of default

(specifically the supplementary metric, the

probability of no cure or PNC); LGD (loss given

default); models of the recoverable amount of

mortgage loans (haircuts); in addition to

adjustments to obtain lifetime or forward-

looking estimates according to the accounting

classification of the contract. It should be noted

that the set of models of haircuts and PNC are

LGD models.

The models used are re-estimated or re-trained

every six months (or at least annually), and they

are executed monthly in order to properly reflect

the current economic environment at any given

time. This makes it possible to reduce the

differences between estimated loss and recent

observations. The models include an unbiased

forward-looking view to determine the expected

loss, taking into account the most relevant

macroeconomic factors: (i) GDP growth; (ii)

unemployment rate; (iii) 12-month Euribor; and

(iv) growth in housing prices. In this regard, the

Group generates a baseline scenario as well as

a range of potential scenarios that allow it to

adjust in a weighted manner expected loss

based on probability.

The calculation process is structured in two steps:

| Determining the basis for the calculation of

allowances, is carried out in two steps:

| Calculation of the exposure amount, which is

the sum of the gross carrying amount at the

time of calculation and off-balance sheet

amounts (available or exposure) expected to

be disbursed when the borrower fulfils the

conditions to be considered non-performing.

| Calculation of the recoverable value of the

effective guarantees linked to the exposure.

In order to establish the recoverable value of

these guarantees, for real estate collateral

the models estimate the amount of the

future sale of the collateral, which is

discounted from the total expenses incurred

until the moment of the sale.

| Determining the hedging to be applied on the

basis for the calculation of allowances:

This calculation considers the probability of

default of the transaction holder, the likelihood

of regularisation or recovery for the secured

portfolio, and the Loss Given Default (LGD) for

the unsecured portfolio.

For insignificant portfolios where it is considered

that the internal model approach is not suitable

due to the processes involved or a lack of past

experience, the Group may use the default

coverage rates established by prevailing

national legislation.

Transactions classified as not bearing appreciable

risk and those that due to the type of guarantor are

classified as not bearing appreciable risk, could have

0 % accounting provision. In the case of the latter, this

percentage will only be applied to the guaranteed

part of the risk.

The coverage estimated individually or collectively

must be consistent with the way in which the

categories into which the transactions can be

classified are processed. That is, the coverage level

for a transaction must be higher than it would be if it

were classified in another lower credit risk category.

During the reviews, the necessary improvements

detected in the retrospective comparison exercises

(backtesting and benchmarking) are also included.

Similarly, the models developed are documented so

they can be replicated by a third party. The

documentation contains key definitions, information

regarding the process of acquiring samples and

data processing, methodological principles and

results obtained, as well as the comparison of said

results with those of previous years.

CaixaBank has a total of 66 models with the aim of

obtaining the parameters necessary to calculate the

coverage using a collective analysis. For each of the

risk parameters, different models can be used to

adapt to each type of exposure. Specifically, the

models include those indicated below:

| 18 parameter models of scoring and rating

| 20 PD parameter models

| 10 EAD parameter models

| 7 PNC parameter models

| 8 LGD parameter models

| 2 parameter models of haircut

| 1 LT/FL transformation parameter model (lifetime/

forward-looking)

Other subsidiaries, such as BPI and CaixaBank

Payments & Consumer, also have additional internal

models.

Inclusion of forward-looking information into the

expected loss models

The Group has taken into account macroeconomic

scenarios of various levels of severity, consistent with

internal management and monitoring processes.

These stages have been benchmarked and found to

be broadly aligned with those issued by public

bodies.

The projected variables considered are as follows:


_FORWARD-LOOKING MACROECONOMIC INDICATORS *
(% Percentages)
		31-12-2025						31-12-2024						31-12-2023
		Spain			Portugal			Spain			Portugal			Spain			Portugal
		2026	2027	2028	2026	2027	2028	2025	2026	2027	2025	2026	2027	2024	2025	2026	2024	2025	2026
GDP growth
	Baseline scenario	2.0	1.9	1.7	2.0	2.0	2.0	2.3	2.1	2.0	2.3	2.2	2.1	1.4	2.0	2.0	1.8	2.5	2.4
	Upside scenario	3.4	2.7	1.6	3.4	2.8	2.3	3.8	3.1	1.8	3.7	2.9	2.3	3.1	3.6	2.7	4.0	3.2	3.0
	Downside scenario	(0.4)	0.1	1.7	(0.4)	0.2	1.8	(0.7)	0.6	2.6	0.6	1.4	1.9	(1.3)	0.2	1.8	(0.8)	1.2	1.8
Unemployment rate
	Baseline scenario	10.2	9.7	9.3	6.4	6.4	6.4	11.1	10.8	10.5	6.5	6.5	6.5	11.8	11.4	11.0	6.5	6.3	6.1
	Upside scenario	9.6	8.5	8.4	6.0	5.8	5.7	10.2	9.4	9.2	6.1	6.0	5.9	10.6	9.5	9.4	6.2	5.9	5.6
	Downside scenario	13.4	14.5	13.8	8.4	9.6	9.3	14.0	14.9	13.8	8.4	8.3	8.2	14.1	15.6	14.6	9.1	8.8	8.4
Interest rates
	Baseline scenario	2.07	2.32	2.53	2.07	2.32	2.53	2.90	2.71	2.68	2.90	2.71	2.68	3.57	3.10	2.95	3.57	3.10	2.95
	Upside scenario	2.62	2.89	2.91	2.62	2.89	2.91	3.10	2.91	2.84	3.10	2.91	2.84	3.11	2.56	2.42	3.11	2.56	2.42
	Downside scenario	1.48	1.60	1.90	1.48	1.60	1.90	2.10	1.86	1.98	2.10	1.86	1.98	4.31	3.78	3.39	4.31	3.78	3.39
Evolution of property prices
	Baseline scenario	5.7	3.3	2.4	4.1	2.8	2.1	2.8	2.6	2.4	2.4	2.5	2.8	1.4	2.2	2.4	(0.1)	1.2	2.5
	Upside scenario	6.9	6.0	3.7	7.2	3.0	2.8	4.2	5.7	3.8	4.8	4.9	3.0	2.8	5.1	3.3	3.4	3.1	2.6
	Downside scenario	0.5	(5.3)	0.1	1.7	(6.6)	(0.1)	(0.9)	(4.4)	0.5	(0.3)	(4.7)	0.5	(1.0)	(3.0)	0.1	(4.5)	(3.7)	1.6
(*) Source: CaixaBank Research. At the date of authorisation for issue of these financial statements, there are updates to the macro data for employees in the calculation of the provisions after the year-end (as presented in Note 3.1) that have no material impact on the provisions posted by the Group (see Sensitivity analysis).

The range downside of the variables used in the

calculation of provisions incorporates deficiencies in

structural reforms that lead, together with other

macroeconomic dynamics, to falls in productivity

and, therefore, in GDP. Thus, the estimated drop

reflects the potential impact of an exacerbated

climate risk which, through various mechanisms (e.g.

increased production costs, increased commodity

prices, etc.), would eventually affect long-term

economic growth. The consolidated management

report details the Group's sustainability strategy,

including its environmental and climate strategy.

The weighting of the scenarios considered in each of

the financial years for each sector is as follows:


WEIGHTING OF THE OCCURRENCE OF THE FORESEEN SCENARIOS
(% percentages)
	31-12-2025			31-12-2024			31-12-2023
	Baseline scenario	Upside scenario	Downside scenario	Baseline scenario	Upside scenario	Downside scenario	Baseline scenario	Upside scenario	Downside scenario
Spain	60	20	20	60	20	20	60	20	20
Portugal	60	20	20	60	20	20	60	20	20

Assumptions and adjustments to models

The macroeconomic table and scenario weighting

presented above are used in the latest November

2025 half-yearly model recalibration. In addition, the

Group maintains a collective provision fund, mainly

for Post Model Adjustment (PMA), amounting to 311

million euros at 31 December 2025 (28 million euros

less than the amount at 31 December 2024).

The collective fund is temporary in nature,

underpinned by guidelines issued by supervisors and

regulators, supported by well-documented

processes and subject to strict governance.

Under prevailing accounting regulations, the

coverage level factors in a forward-looking vision (12

months) or a lifetime vision, based on the accounting

classification of exposure (12 months for stage 1 and

lifetime for stages 2 and 3).

Sensitivity analysis

There is dependence between the various variables

that measure or quantify the economic situation,

such as gross domestic product growth and the

unemployment rate. These interrelationships make it

difficult to establish clear causality relationships

between a specific variable and an effect (e.g.

expected credit losses), as well as making it difficult

to interpret the sensitivities to calculations

performed using expected credit loss models when

these sensitivities are applied to various variables

simultaneously.

Interest rates, which also form part of the group of

forward-looking indicators, have only a minor impact

on the calculation of expected credit losses and

apply only to the portfolio of consumer loans, among

the significant portfolios.

The estimated sensitivity to a 1 % fall in gross

domestic product and, additionally, to a 10 % fall in

real estate asset prices in the expected credit risk

losses at the end of 2025, broken down by type of

portfolio for the businesses in Spain and Portugal, is

shown below:


_SENSITIVITY ANALYSIS –31-12-2025
(Millions of euros)
	Increase in the provision
	1 % drop in GDP		10 % drop in real estate asset prices
	Spain	Portugal	Spain	Portugal
Financial institutions	1
Non-financial corporations and individual entrepreneurs	55	2	20
Project finance	14		5
Financing for real estate construction and development	6		4
Financing civil engineering work	4		1
Other project finance	4
Purposes other than project finance	41	2	15
Large corporates	14		1
SMEs	24	2	11
Individual entrepreneurs	3		3
Households (excluding individual entrepreneurs)	85	4	182	1
Home purchases	69	2	159	1
Home purchase (main residence)	64	2	151	1
Purchase of a secondary residence	5		8
Consumer credit	9	2	5
Other purposes	7		18
TOTAL	141	6	202	1

The models and the estimates on macroeconomic

variations are periodically reviewed to detect

possible impairment in the quality of the

measurements. This continual risk assessment

provides information on the distribution of risk

exposure in the various portfolios with respect to

creditworthiness, expressed as a probability of

default.

NPL management

The recovery and NPL management function is

aligned with the Group's risk management

guidelines. The mission of CaixaBank’s Arrears and

Recoveries Division is to minimise losses arising from

customers’ failure to honour their payment

obligations. To this end, the management priority is

based on four basic principles:

| Prevention: involves detecting customers at risk

of non-payment before an actual default occurs.

The aim is to take early action and return the

situation to normal before a default takes place.

| Customer management: debt recovery

management is carried out with a customer-

centric approach; a holistic view that considers

all of the customer’s positions and applies a

recovery management model tailored to the

segment and the stage of default.

| Search for a solution: the aim is to maximise debt

recovery as quickly as possible and at the lowest

cost to the Bank, prioritising a recovery

agreement through ongoing negotiation with

the customer.

| Risk powers: decisions on recovery solutions

require an appropriate level of authority aligned

with the risk policies.

These principles are there to prevent a default event

from occurring or from exposures becoming

classified as Stage 3, with the ensuing impact on the

statement of profit or loss.

Furthermore, proactive monitoring is conducted on

the portfolio classified as Stage 3 for reasons other

than default in order to remediate it, designing

specific management plans geared towards the

reasons that caused its switch to that accounting

classification.

To carry out recovery activities, CaixaBank operates

a unified NPL management structure, with an end-to-

end view of the recovery management process and

of the stages the customer goes through. This

structure features a high degree of expertise and

capillarity, thus allowing the best possible solution to

be offered according to the customer’s profile and

situation, through a territorial model with teams

supporting the branch network depending on the

stage of delinquency. Management is divided into:

| Preventive/anticipatory delinquency

management for customers who are current on

their payments, handled directly from branch

offices to foresee various non-payment

scenarios.

| Early non-performing loan management with

past-due payments between 1 and 90 days old.

In this regard, specialised teams exist to

coordinate and support the branch network and

collection agencies on a centralised basis in

recovery management prior to the entry into

accounting default. In the current economic

outlook, the capillarity of the branch network and

its proximity to customers continues to be key to

identifying the situation and needs of customers,

especially situations of social vulnerability.

| Lastly, when a customer acquires NPL status for

accounting purposes (arrears exceeding 90

days), management is transferred to specialised

teams through a network of Recovery Centres

located across the territory, with differentiated

management for retail clients and corporate

clients. The team of specialists is geared towards

seeking final solutions in more advanced

situations of non-payment.

All this management has been subject to the

application of the policies and procedures in force

which, in accordance with accounting and

regulatory standards, lay down the guidelines for the

suitable classification of borrowings and estimation

of coverage.

In periods of cyclical stress, such as the pandemic,

the energy crisis or the current geopolitical situation,

CaixaBank has adapted its NPL and recoveries

management to mitigate the impact, adopting an

approach focused on providing sustainable

solutions to customers with viable debt, while

ensuring their continued access to financing in the

face of temporary income declines. Notably, the

Bank has continued to pursue existing measures and

policies aimed at protecting vulnerable borrowers by

stepping up its adherence to state initiatives such as

the Codes of Good Practice, moratoria schemes and

the ICO-COVID and Ukraine credit facilities, as a

further illustration of CaixaBank’s commitment to

financial stability and to protecting its most

vulnerable customers.

Foreclosed assets

BuildingCenter is the Group's company responsible

for the management of real estate assets in Spain,

which basically originate from streamlining of the

Group's credit activity through any of the following

ways: i) acquisition at auctions held after assets

have been foreclosed, mainly in relation to mortgage

loans; ii) Acquisition of mortgaged real estate assets

of individuals, with the subsequent subrogation and

cancellation of the debts; iii) acquisition of real

estate assets granted to companies, including real

estate developers, with the subsequent subrogation

to cancel their debts; and iv) foreclosure through

insolvency proceedings.

The acquisition process includes conducting full

legal and technical reviews of the properties using

the committees appointed for such purpose. In all

cases, purchase prices are based on appraisals

performed by appraisal firms approved by the Bank

of Spain and in accordance with the parameters set

forth in the approved internal rules.

The strategies undertaken for the sale of these

assets are as follows:

| Individual sale: through a servicing contract for

multi-channel marketing activities through its

own branches, the external collaboration of the

network of real estate agents and an active

online presence. This marketing activity comes in

addition to a key factor: support in prescribing

properties generated by the branch network.

| Institutional sales: the Group takes into account

institutional transactions of sales of asset

portfolios to other specialised companies.

| Completion of housing developments: a number

of minor measures to improve some of these

developments are made to ensure they can be

sold. These procedures are conducted by taking

advantage of synergies within the Group.

| Rent: allows for the generation of recurring

income while creating added value for the

property in the event of a future sale.

The detail of foreclosed assets in Spain is shown in

Appendix 6.

Refinancing policies

The Corporate Credit Risk Management Policy and

the Refinancing and Recoveries Policy set out the

general principles issued by the European Banking

Authority in its Guidelines on non-performing and

forborne exposures, as well as the definitions set out

in Annex IX to Bank of Spain Circular 4/2017 and its

subsequent amendments.

Under prevailing legislation, these exposures relate to

transactions in which the customer has, or will

foreseeably have, financial difficulty in meeting its

payment obligations under the contractually agreed

terms and, therefore, has amended the agreement

and/or arranged a new transaction.

These transactions may derive from:

| The approval of a new transaction (refinancing

operation) that fully or partially cancels other

transactions (refinanced transactions)

previously extended by any Group company to

the same borrower or other companies forming

part of its economic group, to become up to

date on its payments for previously past-due

loans.

| The amendment of the contract terms of an

existing transaction (restructured transaction)

that changes its repayment schedule, reducing

the payment amounts (grace periods, extension

of loan maturities, reduction in interest rates,

change in the repayment schedule, extension of

all or part of the capital on maturity, etc.).

| The activation of contract clauses agreed at

origin that extend the debt repayment terms.

| The partial cancellation of the debt without any

contribution of customer funds, primarily through

the forgiveness of principal or ordinary interest

(on the credit granted to the customer).

Restructuring or refinancing shall be deemed to take

place in the following circumstances:

| The transaction was classified as non-

performing before the amendment or was

classified as non-performing without the

amendment.

| The amendment involves the partial cancellation

of the debt's balance, for reasons such as the

recognition of waivers or written-off amounts.

| At the same time as the additional financing is

granted by the Bank, or at a time close to this

additional financing being granted, the holder

has made payments of the principal and interest

of another transaction with the Bank classified as

non-performing or that would be classified as

non-performing had the additional financing not

been granted.

| The Bank approves the use of implicit

amendment clauses in relation to transactions

classified as non-performing, or that would be

classified as such if these clauses were not

enforced.

Restructuring or refinancing shall also be presumed,

in the absence of evidence to the contrary, in the

following circumstances:

| Even where the modified transaction is not

classified as non-performing, all or part of the

payments under the transaction have been

overdue for more than 30 days at least once in

the three months prior to its modification, or

would have been overdue for more than 30

days in the absence of such modification.

| At the same time as additional financing is

granted by the Bank, or at a time close to such

granting, the borrower has made payments of

principal or interest on another transaction with

the Bank that is not classified as non-

performing, the payments of which have been

past due, in whole or in part, for more than 30

days at least once in the three months prior to

the refinancing.

| The Bank approves the use of implicit

amendment clauses in relation to transactions

that are not classified as non-performing with

pending amounts past due for 30 days, of that

would be past due for 30 days if such clauses

were not exercised.

The existence of previous defaults is an indication of

financial difficulty. However, previous defaults are not

a requirement for a transaction to be classified as

refinanced or restructured.

The cancellation of a transaction, changes in the

contractual terms or the activation of clauses that

delay payments when the customer is unable to

meet future repayment obligations can also be

classified as refinancing/restructuring.

The cornerstone of management, which sustains all

actions undertaken by the Bank, shall be the global

analysis of the debtor's positions. To this end, the

repayment capacity thereof shall be identified and

the best solution shall be reached based on the

results of the checks performed.

When the financial circumstances of a customer

change, which may be alleviated by adjusting the

payment flows of their lending positions with their

current repayment capacity, the proposed solution

shall be either refinancing or restructuring the debt.

In contrast, debt renewals and renegotiations may

be granted when the borrower does not have, or is

not expected to have, financial difficulties; i.e. for

business reasons, not to facilitate repayments. For a

transaction to be classified as such, the borrowers

must have the capacity to obtain credit from the

market, at the date in question, for a similar amount

and on similar terms to those offered by the Bank. In

turn, these terms must be adjusted to reflect the

terms offered to borrowers with a similar risk profile.

The breakdown of refinancing by economic sector is

as follows:


_REFINANCING – 31-12-2025 *
(Millions of euros)
		Unsecured loans		Secured loans				Impairment due to credit risk
		No. of trans.	Gross amount	No. of trans.	Gross amount	Maximum amount of the collateral
		No. of trans.	Gross amount	No. of trans.	Gross amount	Real estate mortgage secured	Other collateral
General governments		109	26	85	1	1
Financial corporations and individual entrepreneurs		43	32	16	110	104		(37)
Non-financial corporations and individual entrepreneurs		14,954	1,687	4,025	899	591	6	(1,036)
	Of which: financing for real estate construction and development	163	8	489	133	77		(58)
Other households		39,612	277	43,658	2,144	1,459	6	(859)
TOTAL		54,718	2,022	47,784	3,154	2,156	11	(1,932)
Of which: at stage 3
General governments		59	10	62
Financial corporations and individual entrepreneurs		36	32	7	26	21		(37)
Non-financial corporations and individual entrepreneurs		11,202	1,161	2,737	546	262	2	(1,000)
	Of which: financing for real estate construction and development	110	5	360	97	42		(57)
Other households		20,202	156	29,400	1,458	841	1	(818)
TOTAL STAGE 3		31,499	1,359	32,206	2,030	1,124	3	(1,855)
(*) There is no financing classified as “Non-current assets and disposal groups classified as held for sale”.


_REFINANCING – 31-12-2024 *
(Millions of euros)
	Unsecured loans		Secured loans				Impairment due to credit risk
	No. of trans.	Gross amount	No. of trans.	Gross amount	Maximum amount of the collateral
	No. of trans.	Gross amount	No. of trans.	Gross amount	Real estate mortgage secured	Other collateral
General governments	163	31	632	4	2		(3)
Financial corporations and individual entrepreneurs	46	21	19	80	80		(17)
Non-financial corporations and individual entrepreneurs	18,352	2,540	5,997	1,488	1,027	23	(1,204)
Other households	43,213	278	63,432	2,967	2,068	6	(1,088)
TOTAL	61,774	2,870	70,080	4,539	3,176	28	(2,312)
Of which: Total stage 3	36,895	1,660	44,168	2,739	1,507	9	(2,205)
(*) There is no financing classified as “Non-current assets and disposal groups classified as held for sale”.


_REFINANCING – 31-12-2023 *
(Millions of euros)
	Unsecured loans		Secured loans				Impairment due to credit risk
	No. of trans.	Gross amount	No. of trans.	Gross amount	Maximum amount of the collateral
	No. of trans.	Gross amount	No. of trans.	Gross amount	Real estate mortgage secured	Other collateral
General governments	174	136	741	4	2		(3)
Financial corporations and individual entrepreneurs	49	21	21	85	82		(11)
Non-financial corporations and individual entrepreneurs	19,510	3,243	8,579	1,737	1,187	23	(1,304)
Other households	49,054	327	91,508	3,955	2,796	5	(1,233)
TOTAL	68,787	3,727	100,849	5,781	4,067	28	(2,551)
Of which: Total stage 3	37,427	1,698	53,230	3,079	1,604	15	(2,338)
(*) There is no financing classified as “Non-current assets and disposal groups classified as held for sale”.

CREDIT RISK CYCLE LINKED TO THE INSURANCE

ACTIVITY

The management principles of the instruments

related to the insurance activity are covered by the

Investment Risk Management Policy. This policy

stipulates that decision-making principles will ensure

prudent investment management practices and the

establishment of quantitative limits on assets and

exposures to ensure that managed assets perform

in a balanced and stable manner in the long term,

even under adverse market conditions.

As regards the credit risk associated with financial

instruments, rating scales are defined and minimum

levels of credit quality and diversification are

established, seeking a high degree of diversification

in sectors and issuers, with maximum risk limits per

issuer. In addition, socially responsible investment

criteria are applied in the management of

investments.

In general, cash and cash equivalents are held in

financial institutions with a high credit quality.

Regarding balances that remain receivable from

policyholders, there is no significant concentration of

credit risk with third parties.

Credit risk management is governed by the internal

compliance procedures approved by the VidaCaixa

Board of Directors. In this context, a universe of

securities is established in line with the corporate

guidelines defined by the CaixaBank Group, aligned

with the structure and focus of the investment

management of the insurance activity in relation to

the long-term nature of the investment and the

criticality of liquidity.

CONCENTRATION RISK

In the Corporate Risk Catalogue, concentration risk is

included under credit risk, as it is the main source of

risk, although it covers all types of assets, as

recommended by sectoral supervisors.

The Group has developed policies that lay down

guidelines for concentration risk and frameworks

that develop calculation methodologies that set

specific limits within management. Additionally,

mechanisms have been developed to systematically

identify the aggregated exposure and, wherever it is

considered necessary, limits on relative exposures

have been defined, under the RAF.

Concentration in customers or in “major risks”

The CaixaBank Group monitors compliance with

regulatory limits (25 % of Tier 1 capital) and the

internal thresholds defined in the RAF. At year-end, no

breach of the defined thresholds had been

observed.

The Group also monitors more stringent internal

limits than regulatory and RAF limits on a name-by-

name basis for corporate customers based on their

credit quality, among other drivers.

Concentration in countries

The Group has an internal model for assigning limits

to exposures to residents in different countries. This

internal model takes into consideration not only the

solvency of the group itself, but also the credit quality

and economic relations with the various countries. A

similar methodology is used to assign limits to

exposures to central, regional and local

governments.

Concentration by geographical area and

counterparty type

In addition, the Group monitors exposures,

segregated by geographic area, type of issuer/

counterparty and product, classified into loans and

advances, debt securities, equity instruments,

derivatives and guarantees granted.

The segmentation of financial exposures by geographical area and counterparty type is set out below:


_CONCENTRATION BY GEOGRAPHICAL AREA AND TYPE OF COUNTERPART
(Millions of euros)
			Total	Spain	Portugal	Rest of EU	America	Rest of the world
Central banks and credit institutions			73,474	44,039	3,189	11,950	5,172	9,124
General governments			158,409	115,006	3,612	34,663	3,395	1,733
	Central government		138,416	98,436	686	34,338	3,242	1,714
	Other public administrations		19,993	16,570	2,926	325	153	19
Financial corporations and individual entrepreneurs			43,634	11,033	1,174	25,742	2,421	3,264
Non-financial corporations and individual entrepreneurs			207,210	133,541	15,307	32,573	12,577	13,212
	Real estate construction and development		4,172	3,753	88		323	8
	Civil engineering		7,747	5,319	1,156	148	1,097	27
	Other		195,291	124,469	14,063	32,425	11,157	13,177
		Large corporates	137,149	77,803	6,738	30,592	10,305	11,711
		SMEs and individual entrepreneurs	58,142	46,666	7,325	1,833	852	1,466
Other households			179,964	158,730	18,397	1,206	472	1,159
	Homes		145,989	126,229	17,104	1,129	452	1,075
	Consumer		23,513	22,170	1,281	26	9	27
	Other purposes		10,462	10,331	12	51	11	57
TOTAL 31-12-2025			662,691	462,349	41,679	106,134	24,037	28,492
TOTAL 31-12-2024			626,293	448,903	40,624	87,215	23,174	26,377
TOTAL 31-12-2023			599,852	443,237	37,932	77,045	18,193	23,445

The following is a breakdown of the segmentation of Spain’s financial exposures by autonomous community:


_CONCENTRATION BY AUTONOMOUS COMMUNITY
(Millions of euros)
			Total	Andalusia	Balearic Islands	Canary Islands	Castile and León	Catalonia	Galicia	Madrid	Murcia	Valencia	Basque Country	Other *
Central banks and credit institutions			44,039	127			1	130	50	42,805		325	264	337
General governments			115,006	1,403	266	866	1,406	2,227	725	4,796	214	3,343	631	693
	Central government		98,436
	Other public administrations		16,570	1,403	266	866	1,406	2,227	725	4,796	214	3,343	631	693
Financial corporations and individual entrepreneurs			11,033	106	17	35	7	1,829	9	7,668	113	73	857	319
Non-financial corporations and individual entrepreneurs			133,541	10,356	4,944	4,207	3,390	21,820	3,115	58,642	2,609	10,532	4,072	9,854
	Real estate construction and development		3,753	401	247	141	99	861	9	1,287	58	230	214	206
	Civil engineering		5,319	439	188	109	155	671	155	2,624	102	311	139	426
	Other		124,469	9,516	4,509	3,957	3,136	20,288	2,951	54,731	2,449	9,991	3,719	9,222
		Large corporates	77,803	2,971	2,411	2,064	958	9,193	1,589	46,793	819	5,089	2,017	3,899
		SMEs and individual entrepreneurs	46,666	6,545	2,098	1,893	2,178	11,095	1,362	7,938	1,630	4,902	1,702	5,323
Other households			158,730	23,180	7,242	7,688	5,479	39,751	3,394	31,261	5,461	16,625	4,465	14,184
	Homes		126,229	17,862	5,957	5,770	4,436	31,083	2,623	25,824	4,429	13,162	3,771	11,312
	Consumer		22,170	3,538	918	1,509	699	5,727	576	3,526	735	2,440	495	2,007
	Other purposes		10,331	1,780	367	409	344	2,941	195	1,911	297	1,023	199	865
TOTAL 31-12-2025			462,349	35,172	12,469	12,796	10,283	65,757	7,293	145,172	8,397	30,898	10,289	25,387
TOTAL 31-12-2024			448,903	32,955	11,906	12,218	9,909	60,473	6,864	147,012	8,296	28,539	9,736	24,319
TOTAL 31-12-2023			443,237	32,248	12,495	12,028	9,589	57,985	6,629	141,096	8,430	28,963	9,746	24,525
(*) Includes autonomous communities that combined represent no more than 10 % of the total

Concentration in economic sectors

Risk concentration by economic sector is subject to

RAF limits, differentiating between private business

economic activities and public sector financing, in

addition to internal reporting channels. Particularly,

for the private business sector, a maximum

concentration limit in any economic sector is

established by aggregating the accounting positions

recognised, excluding treasury repo/depo

transactions and those of the trading book.

The Group also operates a model that assigns

maximum exposures to sectors based on their

economic outlook and contribution to the portfolio’s

profitability and credit rating objectives.

Total gross loans to customers by activity were as

follows (excluding advances):


_ CONCENTRATION BY ACTIVITY OF LOANS TO CUSTOMERS – 31-12-2025
(Millions of euros)
			Total	Of which real estate collateral	Of which other collateral	Collateralised loans - Loan to value
			Total	Of which real estate collateral	Of which other collateral	≤ 40%	> 40% ≤ 60%	> 60% ≤ 80%	> 80% ≤100%	>100%
General governments			17,638	259	204	190	127	46	74	26
Financial corporations and individual entrepreneurs			18,323	1,433	570	688	886	296	2	131
Non-financial corporations and individual entrepreneurs			157,602	25,819	2,487	10,258	8,748	4,507	1,586	3,207
	Real estate construction and development		3,994	3,324	39	1,124	1,103	664	220	252
	Civil engineering		6,382	557	119	207	249	81	26	113
	Other		147,226	21,938	2,329	8,927	7,396	3,762	1,340	2,842
		Large corporates	94,919	8,465	1,012	3,215	2,734	1,493	664	1,371
		SMEs and individual entrepreneurs	52,307	13,473	1,317	5,712	4,662	2,269	676	1,471
Other households			179,390	147,899	1,159	46,550	43,860	40,761	13,537	4,350
	Homes		145,987	142,975	353	43,608	42,448	40,130	13,231	3,911
	Consumer		23,513	1,565	385	1,104	450	219	109	68
	Other purposes		9,890	3,359	421	1,838	962	412	197	371
TOTAL			372,953	175,410	4,420	57,686	53,621	45,610	15,199	7,714
Memorandum items: Refinancing, refinanced and restructured transactions			3,244	2,228	20	791	654	449	225	129


_ CONCENTRATION BY ACTIVITY OF LOANS TO CUSTOMERS – 31-12-2024
(Millions of euros)
	Total	Of which real estate collateral	Of which other collateral	Collateralised loans - Loan to value
	Total	Of which real estate collateral	Of which other collateral	≤ 40%	> 40% ≤ 60%	> 60% ≤ 80%	> 80% ≤100%	>100%
General governments	16,216	314	227	162	211	49	85	34
Financial corporations and individual entrepreneurs	13,457	880	24	162	479	180	30	53
Non-financial corporations and individual entrepreneurs	150,447	24,848	3,010	10,332	8,322	4,850	1,322	3,032
Other households	169,481	140,719	771	45,483	42,974	37,854	10,375	4,804
TOTAL	349,601	166,761	4,032	56,139	51,986	42,933	11,812	7,923
Memorandum items: Refinancing, refinanced and restructured transactions	5,097	3,257	31	1,038	1,171	601	249	229


_ CONCENTRATION BY ACTIVITY OF LOANS TO CUSTOMERS – 31-12-2023
(Millions of euros)
	Total	Of which real estate collateral	Of which other collateral	Collateralised loans - Loan to value
	Total	Of which real estate collateral	Of which other collateral	≤ 40%	> 40% ≤ 60%	> 60% ≤ 80%	> 80% ≤100%	>100%
General governments	17,536	353	223	157	267	58	49	45
Financial corporations and individual entrepreneurs	11,527	788	428	192	280	495	91	158
Non-financial corporations and individual entrepreneurs	145,252	23,749	2,731	9,834	8,218	3,808	1,341	3,279
Other households	168,225	141,024	799	47,503	44,266	35,524	8,827	5,703
TOTAL	342,540	165,914	4,181	57,686	53,031	39,885	10,308	9,185
Memorandum items: Refinancing, refinanced and restructured transactions	6,957	4,201	41	1,200	1,275	805	515	447

Total gross loans to customers by type were as follows (excluding advances):


_BREAKDOWN OF LOANS AND ADVANCES TO CUSTOMERS BY TYPE
(Millions of euros)
			31-12-2025			31-12-2024			31-12-2023
			Stage 1	Stage 2 + POCI w/o impair- ment	Stage 3 + POCI with impair- ment	Stage 1	Stage 2 + POCI w/o impair- ment	Stage 3 + POCI with impair- ment	Stage 1	Stage 2 + POCI w/o impair- ment	Stage 3 + POCI with impair- ment
	General governments		17,414	206	21	16,074	128	20	17,034	497	12
	Financial corporations and individual entrepreneurs		17,845	466	63	13,163	215	106	11,212	242	106
	Non-financial corporations and individual entrepreneurs		147,494	9,343	4,111	138,608	10,586	4,570	130,813	13,281	4,675
	Other households		163,488	14,893	3,925	155,390	12,417	4,997	151,957	14,784	5,242
		Homes	133,322	11,447	2,797	126,952	9,429	3,736	124,813	11,330	3,780
		Other	30,166	3,446	1,128	28,438	2,988	1,261	27,144	3,454	1,462
TOTAL			346,241	24,908	8,120	323,235	23,346	9,693	311,016	28,804	10,035


_BREAKDOWN OF PROVISIONS OF LOANS AND ADVANCES TO CUSTOMERS BY TYPE
(Millions of euros)
		31-12-2025			31-12-2024			31-12-2023
		Stage 1	Stage 2 + POCI w/o impair- ment	Stage 3 + POCI with impair- ment	Stage 1	Stage 2 + POCI w/o impair- ment	Stage 3 + POCI with impair- ment	Stage 1	Stage 2 + POCI w/o impair- ment	Stage 3 + POCI with impair- ment
General governments		(1)		(2)	(1)		(5)	(2)		(5)
Financial corporations and individual entrepreneurs		(11)	(2)	(38)	(7)	(1)	(19)	(15)	(6)	(12)
Non-financial corporations and individual entrepreneurs		(375)	(341)	(2,630)	(404)	(346)	(2,567)	(339)	(479)	(2,699)
Other households		(289)	(518)	(2,109)	(276)	(591)	(2,456)	(304)	(680)	(2,774)
	Homes	(70)	(205)	(1,304)	(95)	(335)	(1,632)	(93)	(378)	(1,796)
	Other	(219)	(313)	(805)	(181)	(256)	(824)	(211)	(302)	(978)
TOTAL		(676)	(861)	(4,779)	(688)	(938)	(5,047)	(660)	(1,165)	(5,490)
Identified individually			(77)	(1,171)		(91)	(1,286)		(209)	(1,204)
Identified collectively		(676)	(784)	(3,608)	(688)	(847)	(3,761)	(660)	(956)	(4,286)


_BREAKDOWN OF LOANS AND ADVANCES TO CUSTOMERS ACCORDING TO ARREARS STATUS AND RATES
(Millions of euros)
		31-12-2025	31-12-2024	31-12-2023
By arrears status
	With non-payment of less than 30 days or current with payments	373,069	349,278	342,270
	With non-payment of 30 to 60 days	762	1,011	1,235
	With non-payment of 60 to 90 days	439	594	725
	With non-payment of 90 days to 6 months	808	999	1,250
	With non-payment of 6 months to 1 year	1,172	1,363	1,480
	With non-payment of more than 1 year	3,019	3,029	2,895
By interest rate type
	Fixed	163,239	142,198	130,873
	Floating	216,030	214,076	218,982

Concentration by economic activity

The breakdown of loans and advances by economic activity, mainly related to banking and other activities, is

shown below:


_CONCENTRATION BY ECONOMIC ACTIVITY OF NON-FINANCIAL COMPANIES (ANALYTICAL CNAE)
(Millions of euros)
	31-12-2025			31-12-2024			31-12-2023
	Gross amount	Of which: Stage 3	Provision	Gross amount	Of which: Stage 3	Provision	Gross amount	Of which: Stage 3	Provision
Agriculture, forestry and fishing	3,256	130	(88)	2,942	171	(100)	2,940	180	(126)
Mining and quarrying	594	6	(4)	591	11	(8)	559	17	(11)
Manufacturing industry	32,359	865	(544)	31,501	887	(544)	29,993	867	(503)
Supply of electricity, gas, steam and air conditioning	17,679	176	(156)	17,492	267	(175)	17,891	204	(110)
Water supply	1,916	8	(13)	2,240	18	(17)	2,156	13	(11)
Building	11,517	450	(368)	10,428	629	(381)	10,160	657	(430)
Wholesale and Retail	21,450	831	(642)	21,363	932	(597)	20,982	927	(582)
Transport and storage	17,254	281	(197)	16,254	351	(240)	14,734	477	(337)
Hospitality	10,805	279	(181)	9,688	358	(187)	9,721	428	(207)
Information and communications	7,616	112	(169)	6,617	74	(116)	4,248	31	(69)
Financial and insurance activities	3,162		(100)	3,306	12	(60)	2,359	20	(18)
Real estate activities	15,518	228	(135)	15,359	261	(226)	13,234	319	(182)
Professional, scientific and technical activities	3,575	263	(164)	3,645	164	(179)	3,297	125	(208)
Administrative activities and auxiliary services	6,186	86	(77)	5,716	64	(95)	5,444	40	(76)
Public administration and defence; compulsory social security	141		(3)	173		(5)	1,519		(1)
Education	647	62	(41)	616	52	(60)	505	14	(41)
Health and social services activities	2,099	26	(26)	1,987	21	(41)	1,553	9	(32)
Artistic, recreational and entertainment activities	1,143	35	(29)	1,075	32	(48)	1,015	52	(67)
Other services	2,847	52	(387)	1,785	54	(184)	2,842	15	(728)
TOTAL	159,764	3,898	(3,325)	152,780	4,359	(3,262)	145,152	4,395	(3,739)

Concentration according to credit quality

The methodology applied to assign credit ratings to

fixed income issuances is based on:

| Fixed-income instruments: the regulatory

banking criteria defined in the CRD IV regulation

and the CRR on capital requirements, and

therefore, the second best rating of all those

available is used, if more than two ratings are

available. In this context, for example, as at 31

December 2025 , Spain’s sovereign debt rating

stands at A.

| Loan book: alignment of internal ratings with the

Standard & Poor’s methodology.

The risk concentration by credit quality of credit risk

exposures associated with debt instruments for the

Group is reported below:


_CONCENTRATION BY CREDIT QUALITY – 31-12-2025
(Millions of euros)
	Banking and other business										Insurance activity *
	FA at amortised cost					FA held for trading – Debt sec.	FA at FV w/ changes in other comprehensiv e income	Financial guarantees, loan commitments and other commitments				FA at FV through OCI	FA at amortised cost - Debt Sec.
	Loans and advances to customers				Debt sec.
	Stage 1	Stage 2	Stage 3	POCI	Debt sec.			Stage 1	Stage 2	Stage 3
AAA/AA+/AA/AA-					15,514	45	5,234					4,024	414
A+/A/A-	65,088	154			60,326	556	4,383	38,661	45	1		48,735	3,325
BBB+/BBB/BBB-	65,209	712	1		5,418	179	728	32,592	366	1		7,369	717
INVESTMENT GRADE	130,297	866	1		81,258	780	10,345	71,253	411	2		60,128	4,456
Allowances for impairment	(124)	(7)			(3)			(16)
BB+/BB/BB-	80,899	8,204	6		23			38,178	2,548	1
B+/B/B-	21,782	7,554	43					8,593	1,728	4
CCC+/CCC/CCC-	747	3,652	104					105	319	9
No rating	114,893	4,626	7,839	133	3,191		1	50,680	514	767		97	17
NON-INVESTMENT GRADE	218,321	24,036	7,992	133	3,214		1	97,556	5,109	781		97	17
Allowances for impairment	(554)	(854)	(4,659)	(120)	(18)			(94)	(71)	(236)
TOTAL	347,940	24,041	3,334	13	84,451	780	10,346	168,809	5,520	783		60,225	4,473
_CONCENTRATION BY CREDIT QUALITY – 31-12-2024
(Millions of euros)
	Banking and other business										Insurance activity *
	FA at amortised cost					FA held for trading – Debt sec.	FA at FV w/ changes in other comprehensiv e income	Financial guarantees, loan commitments and other commitments				FA at FV through OCI	FA at amortised cost - Debt Sec.
	Loans and advances to customers				Debt sec.
	Stage 1	Stage 2	Stage 3	POCI	Debt sec.			Stage 1	Stage 2	Stage 3
AAA/AA+/AA/AA-	238				13,036		4,728	2,179				4,619	491
A+/A/A-	61,935	32	1		52,883	270	3,111	34,568	28	1		46,551	3,141
BBB+/BBB/BBB-	52,744	239	1		6,006	97	1,206	18,142	98	1		7,966	752
INVESTMENT GRADE	114,917	271	2		71,925	367	9,045	54,889	126	2		59,136	4,384
Allowances for impairment	(140)	(3)			(3)			(14)
BB+/BB/BB-	94,371	6,335	3		13		2	49,578	2,483	4
B+/B/B-	18,484	7,833	45		102			7,923	1,811	8
CCC+/CCC/CCC-	947	4,108	127		128			231	395	11
No rating	96,719	4,793	9,323	199	3,504	39	5	48,781	156	872			3
NON-INVESTMENT GRADE	210,521	23,069	9,498	199	3,747	39	7	106,513	4,845	895			3
Allowances for impairment	(553)	(935)	(4,869)	(178)	(15)			(74)	(55)	(279)
TOTAL	324,745	22,402	4,631	21	75,654	406	9,052	161,402	4,971	897		59,136	4,387


_CONCENTRATION BY CREDIT QUALITY – 31-12-2023
(Millions of euros)
	Banking and other business										Insurance activity *
	FA at amortised cost					FA held for trading – Debt sec.	FA at FV w/ changes in other comprehensive income	Financial guarantees, loan commitments and other commitments				FA at FV through OCI	FA at amortised cost - Debt Sec.
	Loans and advances to customers				Debt sec.
	Stage 1	Stage 2	Stage 3	POCI	Debt sec.			Stage 1	Stage 2	Stage 3
AAA/AA+/AA/AA-	17,897	3			13,266	3	2,799	13,593	3			2,445	460
A+/A/A-	45,372	92		15	54,922	142	3,357	14,475	17			46,641	2,339
BBB+/BBB/BBB-	62,488	556			5,859	181	1,863	24,959	255			8,065	765
INVESTMENT GRADE	125,757	651		15	74,047	326	8,019	53,027	275			57,151	3,564
Allowances for impairment	(194)	(7)			(5)		(1)	(16)
BB+/BB/BB-	77,581	7,461	2		559	2	19	47,235	3,601	28		46
B+/B/B-	14,307	9,812	29					7,811	1,994	2
CCC+/CCC/CCC-	965	4,694	181		5			246	452	13
No rating	94,253	6,179	9,550	265	2,749	18	1	43,945	122	834		15	16
NON-INVESTMENT GRADE	187,106	28,146	9,762	265	3,313	20	20	99,237	6,169	877		61	16
Allowances for impairment	(470)	(1,158)	(5,256)	(234)	(19)			(86)	(79)	(265)
TOTAL	312,199	27,632	4,506	46	77,336	346	8,038	152,264	6,444	877		57,212	3,580
DEBT SEC.: Debt securities; FA: Financial assets
(*) Financial assets designated at fair value through profit or loss are not included, as they mainly include investments linked to the operation of life insurance products when the investment risk is assumed by the policyholder (Unit-linked).

Concentration in sovereign risk

The Group’s position in sovereign debt is subject to

the general risk-taking policy, which ensures that all

positions taken are aligned with the target risk profile,

and are monitored and controlled through the RAF:

| The position in public, regional and local debt is

subject to the general concentration and

country risk limits established. Regular control

procedures are in place for preventing new

positions in countries in which there is a high risk

concentration, unless express approval is given

by the pertinent authority.

| For fixed-income securities, a framework is in

place regulating the solvency, liquidity and

geographic location of all of the fixed-income

issues and any similar transaction implying

payment in cash for the buyer and the

assumption of the issuer’s credit risk or related

collateral. This control is exercised during the risk

acceptance phase and throughout the life of the

position in the portfolio.

| Public debt positions held on the Treasury Desk

are subject to the framework for market risk

control and limits.

The risk associated with exposures to sovereign risk,

whether direct exposure or assets with sovereign

backing, is continuously monitored in view of publicly

available information, which includes the ratings of

public agencies.

Furthermore, as specified in the table “Maximum

exposure to credit risk” in Note 3.4.1, there are no

material impairments of debt securities.

The carrying amount of the relevant information

relating to the Group's exposure to sovereign risk is

presented below:


_ EXPOSURE TO SOVEREIGN RISK – 31-12-2025
(Millions of euros)
Country / Agency	Banking and other business					Insurance activity *
Country / Agency	Residual maturity **	FA at amortised cost	FA held for trading	FA at FV through OCI	FL held for trading - Short positions		FA at FV through OCI	FA at amortised cost
Spain	< 3 months	2,586	70				265	25
	Between 3 months and 1 year	11,503	32		(94)		2,231	204
	Between 1 and 2 years	17,760		1,016	(35)		2,446	184
	Between 2 and 3 years	7,328	33	1,293			2,122	194
	Between 3 and 5 years	13,676	27	20	(16)		4,473	332
	Between 5 and 10 years	14,140	92	233	(37)		7,235	310
	Over 10 years	2,088	27		(75)		22,822	909
	TOTAL	69,081	281	2,562	(257)		41,594	2,158
Italy	< 3 months	182					2
	Between 3 months and 1 year	243					238	7
	Between 1 and 2 years						111
	Between 2 and 3 years	1,037					784	8
	Between 3 and 5 years	1,577		534			389	12
	Between 5 and 10 years	1,101		65			1,013	36
	Over 10 years	52					3,411	114
	TOTAL	4,192		599			5,948	177
Portugal	< 3 months	64	122	150			54
	Between 3 months and 1 year	276	16	148			33	7
	Between 1 and 2 years	90					32
	Between 2 and 3 years	645					14
	Between 3 and 5 years	194					137	6
	Between 5 and 10 years	537
	Over 10 years	797
	TOTAL	2,603	138	298			270	13
USA	Between 3 months and 1 year	323
	Between 1 and 2 years	126
	Between 2 and 3 years	127
	Between 3 and 5 years	125		2,190
	TOTAL	701		2,190
Japan	Between 1 and 2 years	272
	Between 2 and 3 years	191
	TOTAL	463


_ EXPOSURE TO SOVEREIGN RISK – 31-12-2025
(Millions of euros)
Country / Agency	Banking and other business					Insurance activity *
Country / Agency	Residual maturity **	FA at amortised cost	FA held for trading	FA at FV through OCI	FL held for trading - Short positions		FA at FV through OCI	FA at amortised cost
France	< 3 months							7
	Between 3 months and 1 year						1
	Between 2 and 3 years	605		1,184
	Between 3 and 5 years	1,900	5				51	12
	Between 5 and 10 years	1,883		269			40
	Over 10 years						5
	TOTAL	4,388	5	1,453			97	19
European Union	Between 3 months and 1 year	852
	Between 1 and 2 years	1,116
	Between 2 and 3 years	589
	Between 3 and 5 years	847		615
	Between 5 and 10 years	1,056		638
	Over 10 years			897
	TOTAL	4,460		2,150
Austria	Between 3 and 5 years	830						10
	Between 5 and 10 years	1,440
	TOTAL	2,270						10
Belgium	< 3 months						18
	Between 3 months and 1 year			98				10
	Between 1 and 2 years	393		275
	Between 2 and 3 years							10
	Between 3 and 5 years	175		128
	Between 5 and 10 years	799
	Over 10 years						128
	TOTAL	1,367		501			146	20
Netherlands	Between 2 and 3 years	136					2
	Between 3 and 5 years	211
	Between 5 and 10 years	1,416					3
	TOTAL	1,763					5
Germany	Between 3 months and 1 year	3
	Between 3 and 5 years	433
	Between 5 and 10 years	1,023		211			7
	Over 10 years			171
	TOTAL	1,459		382			7
Other ***	< 3 months	67
	Between 3 months and 1 year	13		1
	Between 1 and 2 years	214						10
	Between 2 and 3 years	59
	Between 3 and 5 years	51
	Between 5 and 10 years	939
	Over 10 years	274
	TOTAL	1,617		1				10
TOTAL		94,364	424	10,136	(257)		48,067	2,407
Of which: Debt securities		75,555	424	10,135	(257)		0	0
FA: Financial assets; FL: Financial liabilities; FV: Fair value
(*) Financial assets designated at fair value through profit or loss are not included, as they mainly include investments linked to the operation of life insurance products when the investment risk is assumed by the policyholder (unit-linked).
(**) The segregation by maturity of sovereign debt securities corresponding to the insurance activity strictly reflects the maturity of the aforementioned securities, without considering financial swaps ( ä see Note 11) arranged to align cash flows with the management of obligations with policyholders.
(***) Mainly includes positions in Saudi Arabia.


_ EXPOSURE TO SOVEREIGN RISK – 31-12-2024
(Millions of euros)
Country/Agency	Banking and other business				Insurance activity *
Country/Agency	FA at amortised cost	FA held for trading	FA at FV through OCI	FL held for trading - Short positions		FA at FV through OCI	FA at amortised cost
Spain	65,908	196	2,906	(154)		41,593	2,200
Italy	4,179	31	588			5,659	178
Portugal	2,899	32	223			251	16
USA	620		2,359
France	2,852		343			26	7
Japan	524
European Union	3,758		1,844			52	20
Rest **	2,865		183	(6)		12	20
TOTAL	83,605	259	8,446	(160)		47,593	2,441
Of which: Debt securities	66,935	259	8,446	(160)		47,593	2,441
FA: Financial assets; FL: Financial liabilities; FV: Fair value
(*) Financial assets designated at fair value through profit or loss are not included, as they mainly include investments linked to the operation of life insurance products when the investment risk is assumed by the policyholder (Unit-linked).
(**) Includes positions in Austria, Germany, the Netherlands, and Luxembourg.


_ EXPOSURE TO SOVEREIGN RISK – 31-12-2023
(Millions of euros)
Country / Agency	Banking and other business				Insurance activity *
Country / Agency	FA at amortised cost	FA held for trading	FA at FV through OCI	FL held for trading - Short positions		FA at FV through OCI	FA at amortised cost
Spain	69,243	131	3,275	(22)		41,788	1,848
Italy	3,910	21	857	(16)		5,592	154
Portugal	2,904		76			268	25
USA	452		2,218			210
France	2,076					30	7
Japan	547
European Union	5,373		412			159	20
Other	2,349		157	(15)		22	19
TOTAL	86,854	152	6,995	(53)		48,069	2,073
Of which: debt securities	69,000	152	6,995	(53)		48,069	2,073
FA: Financial assets; FL: Financial liabilities; FV: Fair value
(*) Financial assets designated at fair value through profit or loss are not included, as they mainly include investments linked to the operation of life insurance products when the investment risk is assumed by the policyholder (Unit-linked).

COUNTERPARTY RISK GENERATED BY

TRANSACTIONS WITH DERIVATIVES AND SECURITY

FINANCING TRANSACTIONS

Monitoring and measurement of counterparty

risk

Counterparty risk is credit risk generated by

derivatives and security financing transactions. It

quantifies the losses derived from the counterparty's

potential default before the cash flows are settled.

The approval of new transactions involving assuming

counterparty risk in the Group is subject to an

internal framework that has been approved by the

Global Risks Committee and that enables rapid

decision making, for both financial and other

counterparties.

In the case of transactions with financial institutions,

the Group has a specific internal framework that

reflects the methodology used for the granting of

facilities. The maximum credit risk exposure

authorised with an entity is determined mainly based

on their external rating and the analysis of their

financial statements. The abovementioned

framework also includes the model for determining

limits and calculating consumer risk for central

counterparties (CCPs).

In transactions with other counterparties, including

retail customers, derivative transactions relating to

asset applications (loan interest rate risk hedging)

are approved jointly with the asset transaction. All

other transactions subject to counterparty risk do

not require explicit approval, provided that the

consumption does not exceed the allocated risk limit

of said counterparty. Otherwise, an individual study

will be requested. Approval of transactions

corresponds to the risk areas responsible for credit

risk analysis and approval.

The definition of limits for counterparty risk is

complemented by internal concentration limits,

mainly for country and large exposure risks.

For derivatives transactions, the exposure to

counterparty risk is calculated on the basis of the

market value of the transactions (loss incurred if the

counterparty defaults at the current time) and their

potential future value (potential loss in an extreme

market price scenario, based on historical series).

Derivative equivalent credit exposure is defined as

the maximum potential loss over the life of the

transactions that the bank could incur if the

counterparty were to default at any time in the

future. This is calculated using Monte Carlo

simulation with portfolio effect and offsetting of

positions, as applicable, at a 95 % confidence interval,

based on stochastic models incorporating the

volatility of the underlying asset and all of the

characteristics of the transactions.

In securities financing transactions, exposure to

counterparty risk is calculated in the Group as the

difference between the market value of the

securities/cash granted to the counterparty and the

market value of the securities/cash received from

the counterparty as collateral, considering the

volatility adjustments in each case.

When calculating the exposure of derivatives and

securities lending, the mitigating effect of collateral

received under Framework Collateral Agreements is

considered.

In general, the counterparty risk exposure calculation

methodology described above is applied at the time

of admission of new transactions, as well as in the

recurring calculations in subsequent days.

Counterparty risk in the Group for financial

counterparties is monitored through an integrated

system that provides real-time data on the available

exposure limit for any counterparty, product and

maturity. For the remaining counterparties,

counterparty risk is monitored through corporate

applications, which contain both the limits of the

lines of derivatives risk (if any) and credit exposure of

transactions.

Measures to mitigate counterparty risk

The main risk mitigation measures employed for

counterparty risk with financial institutions involve:

| ISDA/CMOF contracts: standardised contracts for

global derivative transactions with a

counterparty, which explicitly provide for the

possibility of offsetting the flows of outstanding

collections and payments between the parties

for all derivatives trading hedged by the

contracts. Therefore, in the event of default of the

counterparty, a single payment or collection

obligation is established in relation to all

derivatives closed out with the counterparty.

| CSA Appendix (ISDA) / Appendix III (CMOF):

agreements whereby each of the parties

undertake to provide collateral (usually a cash

deposit) as security for the net counterparty risk

position arising from the derivatives traded

between them. The calculation of the collateral

to be exchanged takes into account the

compensation clauses included in the ISDA or

CMOF contracts.

| GMRA/CME/GMSLA contracts: agreements

whereby the parties undertake to deliver

collateral for the net counterparty risk position

arising from repo or securities lending

transactions, calculated as the deviation that

may occur between the value of the amount

accrued for the simultaneous purchase and sale

of securities and the current market value of

these securities.

| CTA contracts: Agreements whereby the parties

undertake to deliver collateral to mitigate the

potential future exposure (initial margin) of

derivatives entered into after the entry into force

of the exchange obligation of initial margin.

| Break-up clauses: provisions in derivative

contracts that enable, at a certain point in the

contract, the early termination by free decision

of one of the parties. This mitigates counterparty

risk by reducing the effective duration of the

transactions subject to the clause.

| Delivery-versus-payment in securities settlement

systems: systems that eliminate settlement risk

with a counterparty, since clearing and

settlement occur simultaneously and in an

inseparable fashion. At CaixaBank, when viable,

the Continuous Linked Settlement (CLS) is used,

for delivery against payment in the case of

simultaneous collection and payment flows in

different currencies.

| Central counterparties (CCPs): the use of CCPs in

derivatives and securities lending transactions

can mitigate the associated counterparty risk, as

these entities perform interposition functions on

their own account between the two bilateral

counterparties involved in the transaction,

assuming the role of counterparty to each of

them and, consequently, the corresponding

counterparty risk.

EMIR Regulation 3 sets out a number of obligations

for all investors trading in derivatives contracts. It is

worth highlighting the mandatory use of an

authorised central counterparty when trading

certain derivative contracts, the requirement to hold

active accounts with EU CCPs, the centralised

validation by the EBA of pro forma models (initial

margin), and the reporting of all derivative contracts

traded to trade repositories authorised or

recognised by ESMA.

For non-financial counterparties, the mitigation

techniques for counterparty risk involve: ISDA/CMOF

contracts, CSA contracts/CMOF Appendix III and

specifically break-up clauses , pledges of financial

guarantees and guarantees issued by

counterparties with a higher credit quality than the

original counterparty in the transaction.

The Group has signed collateral agreements, mainly

with financial institutions. Risk is quantified daily, in

most cases, by marking to market all outstanding

transactions, subject to the collateral framework

agreement, and comparing this amount to the

current guarantee received/delivered. This entails

modification, where applicable, of the collateral

delivered by the debtor. In the event of a

hypothetical reduction in the Group's rating, the

impact on collateral would not be significant as most

of the collateral agreements do not include

franchises related to the Group's external credit

rating.

More precisely, the management of financial

derivatives in the insurance activity involves using

counterparties. For the insurance activity, the

subsidiaries are financial institutions subject to

supervision by the supervisory authorities of the EU

Member States and are sufficiently solvent. Most of

these subsidiaries contract derivatives with

CaixaBank, so their counterparty risk is not significant.

However, there are specific contractual guarantees

providing for the possibility of terminating the

transaction at any time, either through settlement or

transfer to third parties. This settlement is

guaranteed by a commitment by CaixaBank (or

other minority counterparties) to publish daily strike

prices together with a clear explanation of the

valuation method used.

Since these derivatives are intragroup positions, they

are not included in the consolidated financial

statements. The overall management of the

associated risk that the business transfers to

CaixaBank through these derivatives is integrated

into CaixaBank's overall risk management. In

particular, the risk positions accepted in the

insurance activity are entirely closed to the market,

with CaixaBank using the third-party counterparties

external to the Group mentioned in the preceding

paragraphs, managed in the same way as all other

derivative positions.

RISK ASSOCIATED WITH THE INVESTEE PORTFOLIO

The risk associated with equity investments (or

“investees”) is included under credit risk for

investments that are not classified in the held-for-

trading book. More specifically, the Corporate Risk

Catalogue contemplates it as a specific credit risk

item that reflects the potential loss over a medium

and long-term time horizon, generated by

unfavourable movements in market prices or

impairment of the value of the positions that make

up the portfolio of the CaixaBank Group companies’

equity investments.

Following the entry into force of CRR III in 2025, capital

consumption is calculated under the standardised

approach, differentiating between two types of

equity holdings: i) equity exposures in Collective

Investment Schemes (CISs), whose risk weighting is

determined using a look-through (transparency)

approach (where detailed information on the

underlying investments is available, with risk

assigned according to the underlying portfolio), a

mandate-based approach (where the fund’s

investment policy and limits are known), or an

alternative fall-back approach (where capital

consumption is subject to deductions from own

funds or a fixed risk weight of 1,250 % when sufficient

information is not available); and ii) other equity

exposures, where risk weights are assigned

depending on whether they are short-term

speculative investments (400 %), exposures to central

banks (0 %), exposures incurred under legislative

programmes aimed at stimulating specific sectors

of the economy (100 %), or other cases (250 %).

As regards management, a financial analysis and

control exercise are conducted on the main

investees by specialists exclusively responsible for

monitoring changes in economic and financial data

and for understanding and issuing alerts in the event

of changes in regulations and fluctuations in

competition in the countries and sectors in which the

investees operate. These analysts also interact with

the Investor Relations departments of the listed

investees and compile the information needed,

including third-party reports (such as investment

banks and rating agencies) needed for an overview

of possible risks to the value of the shareholdings.

In general, with the most significant shareholdings,

both the estimates of and actual data on investees’

contributions to income and equity (where

applicable) are updated regularly by these analysts.

In these processes, the outlook for listed companies

and analysts’ views (e.g. recommendations, target

prices, ratings) are shared with Senior Management

for regular comparison with the market.

3.4.2. ACTUARIAL RISK

OVERVIEW

The European regulatory framework of reference for

insurance companies, known as Solvency II, is

transposed into to the Spanish legal system through

Act 20/2015 and Royal Decree 1060/2015, which are

known, respectively, as LOSSEAR and ROSSEAR. This

framework is supplemented by the technical

standards approved by the European Commission

(ITS), which are directly applicable to the insurance

group, and guidelines published by EIOPA (European

Insurance and Occupational Pensions Authority),

which have been adopted by the Directorate

General for Insurance and Pension Funds (DGSFP) as

their own.

In line with the European Solvency II Directive,

actuarial risk is defined in the Corporate Risk

Catalogue as the risk of loss or adverse modification

of the value of commitments taken on via insurance

contracts or pensions with customers or employees,

derived from the divergence between the estimate

for actuarial variables employed in pricing and

reserves and their real evolution. In this scope, the

processes used in the course of business are

categorised according to the following risks that

comprise the actuarial risk:

| Mortality risk: the risk of loss or adverse change in

the value of commitments under life insurance

or pension contracts due to variations in the

level, trend or volatility of mortality rates, where

an increase in the mortality rate leads to an

increase in the value of the commitments

undertaken.

| Longevity risk: risk of loss or adverse change in

the value of commitments under life insurance

or pension contracts due to variations in the

level, trend or volatility of mortality rates, where a

decrease in the mortality rate leads to an

increase in the value of the commitments

undertaken.

| Disability or morbidity risk: risk of loss or adverse

change in the value of commitments under life

insurance or pension contracts resulting from

changes in the level, trend or volatility of

disability, sickness and morbidity rates.

| Lapse risk: risk of loss or adverse change in the

value of expected future profits or increase in

expected future losses resulting from changes in

the level, trend or volatility of actual cancellation,

renewal and surrender rates exercised by

policyholders under insurance contracts,

compared to the applied lapse assumptions.

| Expense risk: risk of loss or adverse change in the

value of commitments under insurance

contracts due to changes in the level, trend or

volatility of the costs of executing insurance or

reinsurance contracts with respect to the

surcharges set out in the pricing and

provisioning assumptions for the products.

| Catastrophe risk: risk of loss or adverse change in

the value of commitments under life insurance

or pension contracts resulting from significant

uncertainty in pricing and provisioning

assumptions relating to extreme or extraordinary

events.

Actuarial risk is inherent to the activity relating to the

subscription of insurance products which, within

CaixaBank Group, is centralised in the subgroup of

companies headed by VidaCaixa. Besides the

subscription activity, actuarial risk also derives from

the defined benefit pension commitments of Group

companies with their employees. At CaixaBank, the

risks inherent to these agreements are transferred

for management by the VidaCaixa Group, whereas

in the defined benefit commitments for Banco BPI

employees they are implemented through a Pension

Fund managed by BPI Vida e Pensões, a VidaCaixa

Group company ( ä see Note 20).

This risk management seeks to uphold the payment

capacity of commitments to borrowers, optimise the

technical margin and preserve the economic value

of the balance sheet, within the limits laid down in

the RAF.

ACTUARIAL RISK CYCLE

Actuarial risk monitoring and measurement

Actuarial risk assumed as a result of the life

insurance contract subscription activity are

managed in conjunction with the inherent risks

arising from the financial assets acquired for

hedging.

With the aim of ensuring correct risk management,

CaixaBank has a Corporate Policy for managing

financial-actuarial risk, which lays down the general

principles, governance framework, control

framework and information reporting framework,

which are applicable to all Group companies with

exposure to such risk. Furthermore, the VidaCaixa

Group companies have management policies and

frameworks for proprietary financial-actuarial risks

that serve to implement that Corporate Policy.

Actuarial risk management established in these

policies seeks the long-term stability of the actuarial

factors that affect the technical evolution of

subscribed insurance products. Among the actuarial

risk factors, mortality and longevity risks are

particularly significant in the life insurance sector.

VidaCaixa addresses these by integrating a partial

internal model into its management practices. This

model adheres to the standards set by the Solvency

II Directive and is submitted annually to the

regulatory authority. The model is based on data

from historical experience that provides a more

adapted vision of the risk profile of the insured group.

On this note, and for each line of business, the

VidaCaixa policy of underwriting and provision of

reserves identifies various parameters for risk

approval, measurement, rate-setting and, lastly, to

calculate and set aside reserves covering

underwritten policies. Additionally, general operating

procedures are set to control the underwriting

process.

Systems for measuring actuarial risk, from which the

sufficiency of the technical provisions are quantified

and assessed policy-by-policy, are integrated into

the management of the insurance activity. In this

sense, production transactions, irrespective of the

channel, are recorded in the systems using the

various contracting and benefits management

applications that are directly integrated or

connected via automated interfaces with

provisioning and capital requirement calculation

applications. Investment management software is

used to manage and control the investments

backing the company's insurance activity. All of the

applications are accounted for automatically in the

accounting support software.

There is a series of applications that perform

management support tasks within these integrated

and automated systems. It is worth noting

applications for data processing that are used for

the preparation of reporting information and risk

management. It also has a Datamart for risks and

solvency, as a support tool for compliance with all

the requirements established by the Solvency II

Directive.

The following assumptions are used to assess the

impact on insurance liabilities and reinsurance

assets.

Actuarial assumptions for the estimation of

mortality/longevity

In accordance with the Solvency II regulatory

framework, the Group has approved an internal

model for longevity and mortality underwriting risks,

with the purpose of obtaining the following results:

| The mortality table relating to the experience of

the insured population in the company

(generational table with calculation of the

improvement factors to be applied between

generations, with the exception of risk policies

where contractual limits are applied within the

current annual period in which the base table is

used).

| The percentages of shock for both longevity and

mortality (calibrated value at the 99.5th or 0.5th

percentile respectively).

The internal model is used extensively and plays a

fundamental role in assessing the impact of

potential decisions, where these impact the bank's

risk profile, including the impact on expected profits

or losses and the volatility arising from such

decisions. Its applications can be separated into two

blocks based on whether it is used for risk

management or management decision-making:

| Risk management: The results of the internal

model are taken into account when formulating

risk strategies, including the setting of risk

tolerance limits, reporting, etc.

| Management decision-making: the internal

model is used to support decisions on new

product launches, rate changes, group policy

pricing and product changes, capital allocation,

etc.

The own experience mortality table derived from the

statistical process of the partial internal mortality

and longevity model has been used to forecast the

best estimate of the flows of obligations to

policyholders under both Solvency II and IFRS.

Other actuarial assumptions

Also, within the framework of calculating the best

estimate of Solvency II and IFRS provisions, the Group

uses assumptions to assess other actuarial or

underwriting risks such as disability, morbidity,

portfolio decline and expenses. These assumptions

are based on the Group's own experience, i.e. on the

observation of historical claims, downturns and

expenses of the Group's portfolio.

Sensitivity analysis

Sensitivity has been calculated on the basis of the

positions of PVCF, RA and CSM at the end of

November 2025 (changes compared with December

2025 are not significant).

There are dependencies between different variables

that make it difficult to establish clear causal

relationships between a particular variable and an

effect. Therefore, when calculating each sensitivity,

all other assumptions remain unchanged except

where they are directly affected by the modified

sensitivity. The results include the impacts of

assumption changes in insurance contract liabilities.

The results are shown as a percentage change

against the corresponding base value indicated in

the appropriate column.

The following section presents a sensitivity analysis

at year-end 2025 to changes in insurance contract

risk variables based on changes in the best-estimate

assumptions used for the volatility of future cash

flows arising from insurance contract obligations:


_SENSITIVITY ANALYSIS TO CHANGES IN CONTRACT RISK VARIABLES – 2025
(Millions of euros)
	Impact on PVCF+RA	Impact on CSM	Impact on profit/(loss) before tax	Impact on equity
RISK
Mortality risk +5 %	7.21	(7.19)	(0.15)	0.13
Longevity risk +5 %	(6.80)	6.79	0.15	(0.13)
Disability and morbidity risk +5 %	14.52	(14.43)	(0.11)	0.02
Lapse risk +10 %	4.92	(4.70)	(0.12)	(0.09)
Lapse risk - 10 %	(4.63)	4.41	0.13	0.09
Expense risk +10 %	3.62	(3.58)	(0.03)	–
Expense risk -10 %	(3.20)	3.17	0.03	–
SAVINGS
Mortality risk +5 %	(111.29)	117.63	(0.69)	(5.65)
Longevity risk +5 %	117.64	(124.69)	0.68	6.37
Disability and morbidity risk +5 %	0.24	(0.11)	–	(0.13)
Lapse risk +10 %	23.11	(18.52)	0.73	(4.32)
Lapse risk - 10 %	(27.52)	21.75	(0.89)	5.36
Expense risk +10 %	36.98	(36.37)	(1.12)	0.31
Expense risk -10 %	(36.65)	36.18	1.11	(0.44)
DIRECT STAKE
Mortality risk +5 %	7.04	(7.15)	(0.09)	(0.10)
Longevity risk +5 %	(7.32)	7.45	0.08	0.10
Disability and morbidity risk +5 %	–	–	–	–
Lapse risk +10 %	23.02	(23.16)	(0.17)	(0.30)
Lapse risk - 10 %	(24.55)	24.71	0.13	0.30
Expense risk +10 %	33.64	(33.08)	(0.46)	–
Expense risk -10 %	(33.71)	33.16	0.45	–

Development of incurred claims

The following is a breakdown of the outstanding incurred claims obligation at year-end 2025 by year of

occurrence comprising the “Liability for claims incurred” compared with previous claims estimates:


_DEVELOPMENT OF INCURRED CLAIMS LIABILITIES - 2025
(Millions of euros)
		2020	2021	2022	2023	2024	2025	Total
Estimation of claim costs (1)
Number of years since reporting	At the end of the year of occurrence	232	278	257	275	353	2,088
	1 year later	322	368	349	384	466
	2 years later	339	384	373	396
	3 years later	348	394	378
	4 years later	352	396
	5 years later	353
Cumulative payments satisfied (-)		353	396	375	384	431	360
Liability for claims incurred (LIC) gross				4	12	34	1,728	1,778
Liabilities for claims incurred (LIC)								1,778
(1) Given the short-term nature of the Liability for Claims Incurred, provisions for claims occurring prior to the disclosed period are not considered significant.

Mitigation of actuarial risk

One of the Group's elements used to mitigate the

assumed actuarial risk consists of transferring part of

the risk to other companies, through reinsurance

contracts. To do so, the Group —and specifically its

insurance company— has a Reinsurance Policy

which is updated at least annually, which identifies

the extent to which risk is passed on, taking into

account the risk profile of direct insurance contracts,

and the type, suitability and effectiveness of the

various reinsurance agreements.

By doing so, an insurance company can reduce risk,

stabilise solvency levels, use available capital more

efficiently and expand its underwriting capacity.

However, regardless of the reinsurance taken out, the

insurance company is contractually liable for the

settlement of all claims with policyholders.

In that regard, the Group establishes tolerance limits

on the basis of the criteria that must govern the

selection of reinsurers and the maximum retained

risk.

3.4.3. STRUCTURAL INTEREST RATE RISK

STRUCTURAL INTEREST RATE RISK

Interest rate risk in the banking book for the

banking business

Risk defined as the negative impact on the economic

value of balance sheet items or on financial income

due to changes in the term structure of interest rates

and their impact on asset and liability instruments

and those off the Group's balance sheet not

recognised in the trading book.

The analysis of this risk is carried out by considering a

broad set of market rate scenarios, including

regulatory shocks and internal scenarios, and takes

into account all relevant sources of risk: Gap risk (with

its components of repricing risk and curve risk), basis

risk and optionality risk. The latter includes both

automatic optionality, linked to movements in

interest rates up to certain levels, and optionality

arising from customer behaviour, which is not solely

dependent on interest rates.

Credit risk spread in the banking book (CSRBB),

arising from changes in the market price of credit

risk, liquidity risk and potentially other characteristics

of instruments with interest credit risk, is taken into

account. This risk is explicitly and comprehensively

assessed and monitored in the structural risk

management processes.

The Group applies best practices in the market and

the recommendations of regulators in measuring

interest rate risk. It sets risk thresholds based on these

metrics related to net interest income and the

economic value of its balance sheet and considering

the complexity of the balance sheet.

It uses both static and dynamic measurements:

Static measurements: static measurements are

those that are not designed based on assumptions

of new business and refer to a specific point in time.

| Static gap: it shows the contractual distribution

of maturities and interest rate reviews for

applicable balance sheet or off-balance

aggregates at a particular date. GAP analysis is

based on comparing the values of the assets

and liabilities reviewed or that mature in a

particular period.

| Balance sheet economic value: this is calculated

as the sum of: i) the fair values of net interest-

rate sensitive assets and liabilities on the

balance sheet; ii) the fair value of off-balance

sheet products (derivatives); and iii) the net

carrying amounts of non-interest-rate sensitive

asset and liability items.

| Economic value sensitivity: the economic value

of sensitive balances on and off the balance

sheet is reassessed under the various stress

scenarios considered by the Group. The

difference between this value and the economic

value calculated at current market rates gives us

a numeric representation of the sensitivity of

economic value to the various scenarios

employed. On the basis of this sensitivity

measure and for certain interest rate scenarios

the Group defines risk thresholds that represent

limits for the management of its economic value.

| Value at Risk (VaR): the potential impact on

economic value is estimated by applying

historical variations in credit spreads at a given

confidence level, providing a prudent and

consistent measure of spread risk.

Dynamic measurements: these are based on the

balance sheet position at a given date and also take

into account the new business. Therefore, in addition

to considering the current on- and off-balance sheet

positions, growth forecasts from the Group's budget

are included.

| Net interest income projections: simulations are

carried out over 1-, 2- and 3-year horizons under

various interest rate scenarios to assess the

expected evolution of net interest income, taking

into account current market yield curves, the

projected development of the business,

wholesale funding issuance and expected

customer behaviour, including the possibility of

early repayment of loans and term deposits, and

potential migration of balances from sight

deposits to term deposits, among other factors.

| Sensitivity of net interest income: The difference

between projected margins in alternative

scenarios and the baseline scenario determines

the sensitivity. The Group then uses this sensitivity

measurement to define operating risk thresholds

for net interest income for particular interest rate

scenarios.

| Earnings at risk (EaR): the potential impact on net

interest income over a one-year horizon is

estimated by applying historical variations in

credit spreads at a given confidence level,

providing a prudent and consistent measure of

spread risk:

These calculations are complemented by a periodic

forward-looking analysis of the trend in balance

sheet sensitivity over a horizon of up to three years.

This projection factors in the successful achievement

of the planned new business and makes it possible

to analyse how sensitivity—both in economic value

and in margin—evolves as the balance sheet

structure changes, whether due to maturities,

renewal of positions or changes in the commercial

mix. This forward-looking approach provides an early

view of structural risk.

In addition, within the framework of the economic

capital self-assessment exercise, the sensitivity of

net interest income and the economic value of the

balance sheet is analysed under other simulated

scenarios based on adverse historical episodes,

selected at a given confidence level and designed to

capture significant movements in the yield curve—

both directional and non-parallel—as well as

observed changes in interbank market spreads,

providing a coherent and prudent basis for risk

assessment.

The following table presents, using a static gap, the

breakdown interest rate revaluations and maturities

of sensitive items on the Group's balance sheet,

without taking into account, where applicable, the

value adjustments or value corrections at the year-

end:


_MATRIX OF MATURITIES AND REVALUATIONS OF THE BALANCE SHEET SENSITIVE TO INTEREST RATES
(Millions of euros)
	=< 1 year	1–2 years	2–3 years	3–4 years	4–5 years	> 5 years	Total
Interbank and Central Banks	56,546			250			56,796
Loans and advances to customers	249,042	30,915	19,973	14,086	10,047	55,628	379,691
Fixed income portfolio	26,791	6,419	13,296	10,786	10,770	25,174	93,236
TOTAL ASSETS	332,379	37,333	33,269	25,123	20,816	80,803	529,723
Interbank and Central Banks	38,290	215	66	28	17	20	38,636
Customer deposits	220,597	35,553	29,289	28,206	23,991	95,644	433,280
Issuances	11,570	7,253	8,073	4,001	3,924	19,115	53,936
TOTAL LIABILITIES	270,457	43,021	37,428	32,235	27,932	114,778	525,851
DIFFERENCE: ASSETS – LIABILITIES	61,922	(5,688)	(4,159)	(7,112)	(7,116)	(33,976)	3,872
Hedges	(117,775)	38,370	46,554	20,714	1,385	11,851	1,099
TOTAL DIFFERENCE	(55,853)	32,682	42,395	13,602	(5,730)	(22,125)	4,971

Below is the sensitivity of the net interest income and

economic value to sensitive balance sheet assets

and liabilities for a scenario of rising and falling

interest rates of 100 basis points:


INTEREST RATE SENSITIVITY
(incremental % with respect to the market baseline scenario / implicit rates)
	+100 BP	-100 BP
Net interest income (1)	1.86 %	(1.91 %)
Economic value of equity for sensitive balance sheet aggregates (2)	(4.33)%	3.61%

(1) Sensitivity of the 1-year NII of sensitive balance sheet aggregates.
(2) Sensitivity of economic value for sensitive balance sheet aggregates on Tier 1.

As regards measurement tools and systems, the

Group obtains detailed transaction-level information

on interest rate-sensitive balance sheet positions

from the applications that manage the various

products. This information is consolidated in

databases with an appropriate degree of

aggregation, allowing for optimised calculations

without compromising quality and reliability.

The asset and liability projection application is

parameterised to reflect the specific financial

characteristics of balance sheet products,

incorporating behavioural models based on

historical information, such as prepayment models

and sight deposit models. The tool is also fed with the

growth forecasts included in financial planning

(volumes, maturities and margins for the different

balance sheet products), as well as with market

scenarios (interest rate and exchange rate curves),

enabling accurate risk estimates to be produced.

Static gaps, net interest income projections and the

economic value of the balance sheet are all

calculated on this platform.

As measures to mitigate structural interest rate risk,

the Group carries out active management through

the use of hedging instruments in the financial

markets, complementing the natural hedges arising

from the balance sheet structure. These hedges aim

to protect net interest income while preserving the

economic value of the balance sheet. As at 31

December 2025, CaixaBank uses hedging

arrangements on sight deposits, loans and

issuances.

The balance sheet interest rate risk assumed by the

Group remains below the levels considered

significant under current regulations.

Interest rate risk for the insurance activity

In particular, the insurance group has an Asset and

Liability Management Policy aimed at establishing

the asset and liability management strategy, based,

among other things, on ensuring compliance with

the obligations arising from insurance contracts

while limiting exposure to interest rate risk. In this

regard, the risk exposure is limited through financial

immunisation techniques commonly used in the

insurance market.

Furthermore, the perimeter of structural interest rate

risk in the insurance group covers the use of the

matching adjustment in the relevant risk-free

interest rate term structure in accordance with the

guidelines set out in the Solvency II Directive.

The redemption value and market value of the

assets allocated to the portfolios affected by the

flow matching adjustment stood at 45,352 million

euros and 49,047 million euros, respectively, as at 31

December 2025.

The following yield curves are used to discount the

estimated future cash flows of insurance contracts:


FINANCIAL RISK ASSUMPTIONS
(% weighted average rate)
	1 year	5 years	10 years	20 years	30 years
Risk	2.17%	3.00%	3.58%	3.66%	3.16%
Savings	2.90%	3.64%	4.16%	4.24%	3.79%
Direct interest	2.17%	3.00%	3.58%	3.66%	3.16%

The rates presented in the table above have been

calculated for the savings segment based on the

weighted average discount rate of managed funds.

Lastly, a sensitivity analysis of how a possible change

in interest rates and spread of credit could affect

“Other comprehensive income” derived from the

valuation of insurance contracts referenced to the

BBA model, as well as the “Financial assets at fair

value through other comprehensive income”

associated with this model, is presented:


_INTEREST RATE SENSITIVITY – 2025*
(incremental % with respect to the baseline scenario)
	+50 BP	-50 BP
Risk-free type	(0.11)%	0.16%
	+50 BP	-50 BP
Credit spread in Spanish debt	(0.16)%	0.21%
Credit spread in Italian debt	(0.11)%	0.12%
Credit spread in Portuguese debt	—%	—%
Credit spread in French debt	(0.17)%	0.18%
Credit spread in corporate	(0.17)%	0.18%
(*)The sensitivity variation applies to the yield curves for all durations.

The sensitivity calculation has been determined on

the basis of the positions at the end of November

2025 (changes compared to December 2025 are not

expected to be significant).

EXCHANGE RATE RISK IN THE BANKING BOOK

Exchange rate risk in the banking book refers to the

potential loss of value of a financial instrument or

balance sheet item in the event of adverse

movements in exchange rates.

The Group has foreign currency assets and liabilities

in its balance sheet as a result of its commercial

activity and its shares in foreign currencies, in

addition to the foreign currency assets and liabilities

deriving from the Group’s measures to mitigate

exchange rate risk.

The equivalent euro value of all foreign currency

assets and liabilities in the Group's balance sheet is

as follows:


_POSITIONS IN FOREIGN CURRENCIES
(Millions of euros)
	Banking and other business			Insurance activity
	31-12-2025	31-12-2024	31-12-2023	31-12-2025	31-12-2024	31-12-2023
Cash and cash balances at central banks and other demand deposits	466	467	569	219	421	294
Financial assets held for trading	1,465	1,957	1,814
Financial assets not designated for trading compulsorily measured at fair value through profit or loss				9,465	8,365	7,391
Financial assets designated at fair value through profit or loss				365	530	375
Financial assets through other comprehensive income	2,540	2,678	2,573	1,539	1,749	1,917
Financial assets at amortised cost	36,260	31,484	25,613	235	200	188
Investments in joint ventures and associates	138	176	161
Other assets	544	605	661
TOTAL FOREIGN CURRENCY ASSETS	41,413	37,367	31,391	11,823	11,265	10,165
Of which: Linked to investments on behalf of risk- bearing life-assurance policyholders *.				4,547	3,825	2,806
Financial liabilities designated at fair value through profit or loss				104	105	90
Financial liabilities at amortised cost	19,980	17,947	17,301
Other liabilities	1,288	1,741	1,653
TOTAL FOREIGN CURRENCY LIABILITIES	21,268	19,688	18,954	104	105	90
(*) Corresponds to assets linked to the unit-linked product, the risk of which is borne by the policyholders. The changes in the value of the assets of the unit-linked product are symmetrical to the change in the life insurance provision of these products.

The Group hedges its foreign exchange risk by

arranging spot transactions or financial derivatives

that mitigate the risk of on-balance sheet asset and

liability positions, but whose nominal amount is not

directly reflected in the balance sheet but in

memorandum accounts of financial derivatives. This

risk is managed by seeking to minimise the level of

exchange rate risk assumed in commercial activity,

which explains why the Group's exposure to this

market risk is low.

The remaining foreign currency positions in the

banking book and of the treasury activity are chiefly

held with credit institutions in major currencies. The

methods for quantifying these positions, which are

the same, are applied alongside the risk

measurements used for the treasury activity as a

whole.

The breakdown by currency of the main headings of

the balance sheet are set out below:


_ MAIN BALANCE SHEET ITEMS BY CURRENCY –31-12-2025
(Millions of euros)
	Banking and other business							Insurance activity
	USD	JPY	GBP	PLN	CHF	CAD	Other	USD	JPY	GBP	PLN	CHF	CAD	Other
Cash and cash balances at central banks and other demand deposits	131	20	57	86	11	17	144
Financial assets held for trading	865		516	3		72	9
Financial assets not designated for trading compulsorily measured at fair value through profit or loss								8,662	719	42		27		15
Financial assets designated at fair value through profit or loss								365
Financial assets through other comprehensive income	2,191		3				346	893		591		4	19	32
Financial assets at amortised cost	26,658	102	5,516	780	614	1,276	1,314	92		130		13
Financial liabilities designated at fair value through profit or loss								104
Financial liabilities at amortised cost	15,442	179	2,589	665	616	60	429
Other liabilities	774	1	385	15	24	63	26

Given the reduced exposure to exchange rate risk and considering the existing hedges, the sensitivity of the

balance sheet's economic value is not significant.

3.4.4. LIQUIDITY AND FUNDING RISK

OVERVIEW

Liquidity and financing risk refers to insufficient liquid

assets or limited access to market financing to meet

contractual maturities of liabilities, regulatory

requirements, or the investment needs of the Group.

The Group manages this risk in order to ensure

liquidity is maintained at levels that allow it to

comfortably meet all its payment obligations and to

prevent its investment activities from being affected

by a lack of lendable funds, operating at all times

within the RAF. The strategic principles to achieve the

management objectives are as follows:

| A decentralised liquidity management system

across three units (CaixaBank subgroup, BPI, and

CaixaBank Wealth Management Luxembourg,

S.A.), which includes a segregation of duties to

ensure optimal management, control and

monitoring of risks.

| Maintaining an efficient level of liquid funds in

order to meet obligations assumed, fund

business plans and comply with regulatory

requirements.

| Active management of liquidity through ongoing

monitoring of liquid assets and the balance

sheet structure.

| Sustainability and stability as principles of the

funding source strategy, which is based on: i) the

customer deposit-based funding structure; and

ii) capital market funding, complementing the

funding structure.

The liquidity risk strategy and appetite for liquidity

and financing risk involves:

| Identifying significant liquidity risks for the Group

and its liquidity management units;

| Formulating the strategic principles the Group

must observe in managing each of these risks;

| Establishing the relevant metrics for each of

these risks;

| The establishment of appetite, tolerance, breach

and, as the case may be, recovery thresholds

within the RAF;

| Setting up management and control procedures

for each of the risks, including mechanisms for

internal and external systematic monitoring;

| Definition of a stress testing framework and a

Liquidity Contingency Plan to ensure liquidity risk

management in moderate and severe crisis

situations; and

| a recovery planning framework, in which

scenarios and measures are devised for stress

conditions.

In particular, the Group holds specific strategies with

regard to: i) intraday liquidity management; ii) short-

term liquidity management; iii) management of

funding sources/concentrations; iv) management of

liquid assets; and v) management of collateralised

assets. The Group also has procedures in place to

minimise liquidity risks under stress conditions

through i) the early detection of circumstances

through which it can be generated; ii) minimising

negative impacts; and iii) active management to

overcome the potential crisis situation.

MITIGATION TECHNIQUES FOR LIQUIDITY RISK

Based on the principles mentioned in the previous

section, the Contingency Plan is drawn up, defining

an action plan for each of the crisis scenarios

established and detailing commercial, institutional

and communication measures to deal with this type

of situation, as well as the possibility of using the

liquidity reserve or extraordinary sources of

financing. In the event of a situation of stress, the

liquid asset buffer will be managed in order to

minimise liquidity risk.

The measures in place for liquidity risk management

and anticipatory measures feature:

| Delegation of powers to issue instruments by the

Annual General Meeting or, as the case may be,

the Board of Directors, depending on the type of

instrument.

| Availability of several facilities open with i) the

ICO, under credit facilities – mediation; ii) the

European Investment Bank (EIB); and iii) the

Council of Europe Development Bank (CEB). In

addition, there are financing instruments with the

ECB for which guarantees have been posted to

ensure that liquidity can be obtained

immediately:


_ AVAILABLE UNDER ECB FACILITY
(Millions of euros)
	31-12-2025	31-12-2024	31-12-2023
Value of guarantees delivered as collateral	75,707	74,250	78,570
CaixaBank	70,804	69,318	73,034
BPI	4,903	4,932	5,536
(-) Drawn down
(-) Interest on guarantees drawn down
TOTAL	75,707	74,250	78,570

| Maintenance of issuance programmes with a

view to reducing the time required to formalise

the issuance of securities to the market:


DEBT ISSUANCE CAPACITY 31-12-2025
(Million euros / Million dollars)
	Currency	Issuance capacity	Total issued
CaixaBank Fixed Income Programme (Spain)	EUR	30,000	4,250
CaixaBank EMTN programme (Ireland)	EUR	40,000	26,557
EMTN programme BPI (Luxembourg)	EUR	7,000	3,100
U.S. Programme MTN CaixaBank (Ireland)	USD	12,500	8,250
CaixaBank ECP programme (Ireland)	EUR	3,000	1,142
BPI Mortgage Covered Bonds Programme (Portugal)	EUR	9,000	6,800
BPI Public Sector Obligations Programme (Portugal)	EUR	2,000	600
EMTN: Euro Medium Term Note
U.S. MTN: U.S. Medium Term Note
ECP: Euro Commercial Paper

| Guaranteed securities issuance capacity:


_ COVERED BOND ISSUANCE CAPACITY – 31-12-2025
(Millions of euros)
	Issuance capacity *	Total issued
Mortgage covered bonds	49,748	56,300
Public sector covered bonds	4,770	2,000
(*) The liquid assets segregated in the liquidity buffer, if any, are not included in the calculation of the issuance capacity. The issuance capacity taking into account the liquidity buffer is 49,478 million euros for mortgage covered bonds and 4,770 million euros for regional covered bonds at the end of December 2025.

The degree of collateralisation and over-

collateralisation of mortgage covered bonds

issued by CaixaBank can be found at :


_COLLATERALISATION OF CAIXABANK MORTGAGE COVERED BONDS
(Millions of euros)
	31-12-2025	31-12-2024	31-12-2023
Mortgage-covered bonds issued (A)	56,300	60,362	56,840
Collateral portfolio for mortgage- covered bonds * (B)	111,350	109,296	103,418
Collateralisation (B/A)	198%	181%	182%
OVERCOLLATERALI- SATION ([B/A]-1)	98%	81%	82%
(*) The liquidity buffer is included in the coverage set. At year-end, no liquid assets were segregated for this portfolio, whereas in 2024 a buffer of 3,864 million euros had been set aside. In 2023 there was also no balance in the liquidity buffer, as there was no requirement.

To facilitate access to short-term markets,

CaixaBank currently maintains the following:

| Interbank facilities with a significant

number of (domestic and foreign) banks,

as well as central banks.

| Repo facilities with a number of domestic

and foreign counterparties.

| Access to Central Counterparty Clearing

Houses for repo trading (LCH SA - Paris, BME

CLEARING and EUREX - Frankfurt).

| The Contingency Plan and the Recovery Plan

provide for a wide range of measures to

generate liquidity in crisis situations of various

kinds. These include potential issuances of

secured and unsecured debt, use of the repo

market, and so on. For all these, viability is

assessed under different crisis scenarios and

descriptions are provided of the steps necessary

for their execution and the expected period of

execution.

LIQUIDITY SITUATION

The following table presents a breakdown of the Group's liquid assets based on the criteria established for

determining high quality liquid assets to calculate the LCR:


_LIQUID ASSETS
(Millions of euros)
	31-12-2025		31-12-2024		31-12-2023
	Market value	Applicable weighted amount	Market value	Applicable weighted amount	Market value	Applicable weighted amount
Level 1 assets	109,871	109,599	110,465	110,301	100,557	100,522
Level 2A assets	247	210	320	272	194	165
Level 2B assets	1,051	564	983	535	1,394	697
HIGH-QUALITY LIQUID ASSETS (HQLA)	111,169	110,374	111,768	111,109	102,145	101,384
Eligible available non-HQLA		61,456		60,259		58,763
TOTAL LIQUID ASSETS		171,830		171,367		160,147
(*) Assets included in the calculation of the LCR (Liquidity Coverage Ratio). It corresponds to high-quality liquid assets available to meet liquidity needs for a 30- calendar day stress scenario.

The Group's liquidity and financing ratios are set out below:


_LCR AND NSFR RATIOS
(Millions of euros)
		31-12-2025	31-12-2024	31-12-2023
High-quality liquid assets – HQLA (A)		110,374	111,109	101,384
Total net cash outflows (B)		54,507	53,754	47,067
	Cash outflows	70,387	66,459	59,861
	Cash inflows	15,880	12,705	12,794
LCR (LIQUIDITY COVERAGE RATIO) (%) - (A/B) *		202 %	207 %	215 %
NSFR (NET STABLE FUNDING RATIO) (%) **		146 %	146 %	144 %
(*) LCR: regulatory ratio whose objective is to maintain an adequate level of high-quality assets available to cover liquidity needs with a 30-day horizon, under a stress scenario. The liquidity coverage requirement for credit institutions, the regulatory minimum LCR ratio is 100 %.
(**) NSFR – regulatory balance sheet structure ratio that measures the ratio between the quantity of available stable funding (ASF) and the quantity of required stable funding (RSF). Available stable funding is defined as the proportion of own funds and customer funds that are expected to be stable in the time horizon of one year. The amount of stable funding required by an institution is defined in accordance with its liquidity and the residual maturities of its assets and its balance sheet positions. The regulatory minimum for the NSFR ratio at 100 %.

Key credit ratings are displayed below:


_CAIXABANK CREDIT RATINGS
	Issuer rating			Preferred senior debt		Rating of mortgage covered bonds	Last review date of mortgage covered bonds
	Long-term debt	Short-term debt	Outlook	Preferred senior debt	Assessment date	Rating of mortgage covered bonds	Last review date of mortgage covered bonds
S&P Global	A+	A-1	Stable	A	16-09-2025	AAA	18-09-2025
Fitch Ratings	A-	F1	Positive	A	07-10-2025
Moody’s	A2	P-1	Stable	A2	03-10-2025	Aaa	03-10-2025
DBRS	A (high)	R-1(middle)	Stable	A (high)	18-12-2025	AAA	09-01-2026

In the event of a downgrade of the current credit

rating, additional collateral is required for certain

counterparties or there are early repayment clauses.

The breakdown of the impact on liquidity deriving

from 1, 2 and 3-notch downgrading is shown below:


_LIQUIDITY SENSITIVITY TO CHANGES IN THE CREDIT RATING
(Millions of euros)
	1-notch downgrade	2-notch downgrade	3-notch downgrade
Trading in derivatives / repos (CSA / GMRA / GMSLA agreements) *	0	2.78	2.78
Deposits held at credit institutions *
(*) The balances shown are cumulative for each downgrade.

ASSET ENCUMBRANCE – ASSETS RECEIVED AND DELIVERED AS SECURITY

The following table presents the assets delivered and received as security:


_ASSETS DELIVERED AND RECEIVED AS COLLATERAL FOR TRANSACTIONS
(Millions of euros)
	31-12-2025		31-12-2024		31-12-2023
	Committed assets (A)	Non- commmitted assets (B)	Committed assets (A)	Non- commmitted assets (B)	Committed assets (A)	Non- commmitted assets (B)
Carrying amount of encumbered assets	75,266	505,405	80,521	472,083	81,327	452,507
Equity instruments		1,323		1,080		1,766
Debt securities *	35,252	60,325	29,079	56,035	21,774	63,945
Other assets **	40,014	443,757	51,442	414,968	59,553	386,796
Loans and items receivable	40,014	392,898	51,442	361,917	59,553	331,297
Other		50,859		53,051		55,499
Fair value of assets received ***	4,139	20,409	5,343	21,869	7,330	16,671
Debt securities	4,139	18,739	5,343	20,425	7,327	14,400
Other collateral		1,670		1,444	3	2,271
COLLATERALISED ASSETS RATIO [A/ (A+B)].	13.12%		14.81%		15.89%
Memorandum items: Own debt securities issued
Other than own covered bonds or own asset-backed securities ****		71		47		192
Unpledged own and secured bonds *****		62,409		64,041		66,519
(*) Relates mainly to assets assigned under repurchase agreements and ECB financing transactions.
(**) Relates mainly to assets delivered as security for securitisation bonds, mortgage covered bonds and public sector covered bonds. These issuances are chiefly used in relation to market issuing activity and as collateral in ECB funding arrangements.
(***) Mainly corresponds to assets provided in reverse repurchase agreements, securities lending transactions and derivatives.
(****) Senior debt treasury shares.
(*****) Relates to treasury shares issued in the form of securitisations and covered bonds (mortgage/public sector).

In 2025, the ratio of collateralised assets was 1.69

percentage points lower than the 2024 ratio, falling

1.69 percentage points, largely driven by lower

outstanding balances of guaranteed issuances

placed in the market and a reduction in collateral

posted as other forms of security. These effects were

partially offset by higher encumbrance arising from

repo transactions entered into.

Secured liabilities and the assets securing them are

as follows:


_SECURED LIABILITIES AND ASSETS SECURING THEM
(Millions of euros)
	31-12-2025		31-12-2024		31-12-2023
	Liabilities hedged, contingent liabilities or securities ceded	Assets, guarantees received and treasury instruments issued *	Liabilities hedged, contingent liabilities or securities ceded	Assets, guarantees received and treasury instruments issued *	Liabilities hedged, contingent liabilities or securities ceded	Assets, guarantees received and treasury securities issued *
Financial liabilities	49,580	59,859	51,223	65,178	55,649	71,761
Derivatives **	7,854	7,860	9,269	9,766	10,223	10,812
Deposits ***	31,284	35,532	25,195	29,190	27,436	31,893
Issuances ****	10,442	16,466	16,759	26,223	17,991	29,056
Other sources of charges	13,057	19,546	11,706	20,685	11,375	16,896
TOTAL	62,637	79,405	62,929	85,863	67,024	88,657
(*) Excluding encumbered covered bonds and asset-backed securities.
(**) Includes collateral provided to counterparties for the value of derivatives collateralised by fixed-income bonds or cash.
(***) Mainly includes the repo transaction in which fixed-income bonds are pledged as collateral and, to a lesser extent, issues of covered bonds recognised as deposits.
(****) Mainly includes issues of covered bonds secured by mortgage-covered bonds and, to a lesser extent, securitisations.

RESIDUAL MATURITY PERIOD

The following is a breakdown by maturity of the balances, including interest flows based on the market curves

of the reference date (implicit rates) for banking business and other:


_RESIDUAL MATURITY OF THE TRANSACTIONS –31-12-2025
(Millions of euros)
	On demand	=< 3 months	3 - 12 months	1 - 5 years	>5 years	Total
Interbank assets		53,993	2,589	383		56,965
Loans and advances - Customers	4,457	39,669	59,693	166,061	188,106	457,986
Debt securities		2,248	21,980	47,689	26,856	98,773
TOTAL ASSETS	4,457	95,910	84,262	214,133	214,962	613,724
Interbank liabilities		36,306	1,873	497	136	38,813
Customer deposits	128,093	29,970	63,247	117,432	95,669	434,411
Debt securities issued		3,634	7,206	31,201	21,865	63,905
TOTAL LIABILITIES	128,093	69,910	72,326	149,130	117,670	537,129
Of which are wholesale issues net of treasury shares and multi-issuers		2,245	4,863	24,575	19,333	51,016
Of which are other financial liabilities for lease	5	4	36	246	1,219	1,510
Drawable by third parties		6,169	17,953	49,463	53,826	127,411

The transaction maturities are projected according

to their contractual and residual maturity,

irrespective of any assumption that the assets or

liabilities will be renewed. Issuances and fixed-

income instruments are excluded from contractual

maturity and will instead be reported by reference to

their first call date, where applicable. In the case of

demand accounts with no defined contractual

maturity, the Group's internal behaviour models are

applied. In order to assess the negative gap in the

short term, the following aspects must be

considered:

| The Group has high and stable retail financing

with probable renewal.

| Additional guarantees are available at the

European Central Bank, and there is the capacity

to generate new deposits through asset

securitisation and the issuance of mortgage- or

public sector-covered bonds.

The calculation does not consider growth

assumptions, and consequently disregards internal

strategies for raising net liquidity, which are

especially important in the retail market. The

monetisation of available liquid assets is also not

included.

As regards issuances, the Group’s policies take into

account a balanced distribution of maturities,

preventing concentrations and diversifying financing

instruments.

In addition, its reliance on wholesale markets is

limited.

LIQUIDITY RISK OF INSURANCE ACTIVITY

In addition, the insurance group uses a decentralised

approach to manage its liquidity and funding risk

with respect to CaixaBank. This management is

based on its own management frameworks and

policies included in the strategic risk management

processes. The insurance group does not have a

significant exposure to this risk as its portfolio

investments are primarily long-term. However, there

is a risk of illiquidity with the inherent market risk of

assuming that an asset must be sold at a lower price

than the market price due to its lack of liquidity or

volatility at the time. Furthermore, there is a risk that

the company may not have sufficient cash to meet

immediate payments and honour its obligations

over certain time horizons, mainly in the short term.

The insurance group continuously monitors the

adequacy of the cash flows from investments and

the obligations under insurance contracts. As assets

are directly related to the liabilities that they cover,

managing this risk is closely linked to the

management of assets (ä see Note 3.4.1) and

liabilities inherent to the business (ä see Note 3.4.2).

While liquidity risk is inherent to any asset, monitoring

the evolution of probable flows provides sufficient

information to manage liquidity needs

comprehensively.

In addition, two analyses are carried out based on

the time horizon:

| Cash flow forecast: a one-month forecast that

analyses the need for liquidity to meet

immediate commitments.

| Forecast under different short/medium-term

liquidity stress test scenarios: an analysis of the

existing gap in cash inflows and outflows derived

from the insurance group's cash flow projection.

This second analysis considers the segmentation

of the business mainly according to interest rate

guarantee and redemption rights.

The insurance group regularly monitors the

matching of asset and liability flows to manage the

sensitivity of portfolios to changes in the profitability

and duration of assets and liabilities and to

anticipate possible cash flow mismatches.

Approximately 71% of the financial assets of the

insurance activity correspond to debt securities

issued by public administrations, the maturities of

which are outlined in Note 3 –3.4. Financial risks -

3.4.1. Credit risk - Concentration risk -

Concentration in sovereign risk.

The analysis by maturity of the insurance activity is

presented below:


_ RESIDUAL MATURITY OF THE TRANSACTIONS –31-12-2025
(Millions of euros)
	On demand	< 3 months	3 - 12 months	1 - 2 years	2 - 3 years	3 - 4 years	4 - 5 years	>5 years	Total
Liabilities under insurance contracts (1)	2	1,900	6,527	5,924	4,527	3,940	3,618	27,370	53,808
TOTAL LIABILITIES	2	1,900	6,527	5,924	4,527	3,940	3,618	27,370	53,808
(1) The amounts for Insurance Contract Liabilities do not include the Risk Adjustment for Non-Financial Risks, the CSM or contracts measured under VFA.

3.4.5. MARKET RISK

OVERVIEW

The Group identifies market risk as the loss of value,

impacting on performance or solvency, of a portfolio

(set of assets and liabilities), due to unfavourable

movements in prices or market rates. The market risk

of CaixaBank Group's trading book quantifies

possible losses that could arise due to fluctuations in

interest rates, exchange rates, credit spreads,

external factors or prices in the markets where it

operates.

Market risk encompasses almost all the Group’s

trading book, as well as the deposits and repos

arranged by trading desks for management.

Risk factors are managed according to the return-

risk ratio determined by market conditions and

expectations, the limits structure and the authorised

operating framework.

MARKET RISK CYCLE

Monitoring and measurement of market risk

On a daily basis, the Group monitors all transactions

arranged, calculating how market changes will

affect the profit and loss of positions held,

quantifying the market risk undertaken, and

monitoring compliance with limits. With the results

obtained from these activities, a daily report is

produced on positions, risk quantification and the

utilisation of risk thresholds, which is distributed to

Senior Management, the officers in charge of

managing them, to Model Validation and Risk and to

the Internal Audit division.

As a general rule, there are two types of

measurements which constitute a common

denominator and market standard for the

measurement of market risk:

Sensitivity

Sensitivity represents risk as the impact a slight

change in risk factors has on the value of positions,

without providing any assumptions about the

probability of such a change.

Value-at-risk (VaR)

The benchmark market risk measure is the 99 % VaR

with a one-day time horizon, for which the RAF

defines a limit for the Group’s trading activities.

Daily VaR uses the historical simulation methodology

which is based on the calculation of the impact on

the value of the current portfolio of historical

variations in risk factors: Daily changes observed

over the last year are taken into account, with a

confidence interval of 99 %. VaR by historical

simulation is suitable, given that it does not include

any assumptions on the statistical behaviour of the

risk factors, incorporating the consideration of non-

linear relationships between them.

Moreover, since a downgrade in the credit rating of

asset issuers can also give rise to adverse changes

in market prices, quantification of risk is completed

with an estimate of the losses arising from changes

in the volatility of the credit spread on private fixed-

income and credit derivative positions (spread VaR),

which constitutes an estimate of the specific risk

attributable to the security issuers. This calculation is

also based on a historical methodology with a 99 %

confidence interval and assuming daily changes in

the credit spreads .

The total VaR results from the aggregation of both

VaRs: the VaR calculated for fluctuations in interest

rates, exchange rates (and the volatility of both),

inflation, commodities (without current position), and

equities plus the Spread VaR.

Additional measures to VaR

As an analysis measurement, the Group completes

the VaR measurements with the following risk

metrics, updated weekly:

| Stressed VaR indicates the maximum loss on

adverse movements in market prices based on

a stressed historical period of one year, with a 99

% confidence level and a daily time horizon

(subsequently extrapolated to the regulatory

horizon of 10 market days, multiplying by the root

of 10). The stressed VaR calculation is leveraged

by the same methodology and infrastructure as

the historical VaR, with the only significant

difference being the historical window selected.

| The incremental default and migration risk

reflects the risk related to changes in credit

ratings or breach of positions in fixed-income

instruments and credit derivatives in the trading

book, with a confidence level of 99.9 %, a one-

year time horizon, and a quarterly liquidity

horizon, which is justified by the high liquidity of

portfolio issuances. The estimate is made using

Montecarlo simulation of possible future states

of external rating of the issuer and the issue,

based on transition matrices published by the

main rating agencies, where dependence

between credit quality variations between the

different issuers is modelled using Student's t-

distribution.

The maximum, minimum and average values of

these measurements in this year, as well as their

value at the close of the period of reference, are

shown in the following table.


_SUMMARY OF RISK MEASUREMENTS – 2025
(Millions of euros)
	Maximum	Minimum	Average	Latest
1-day VaR	2.2	0.6	1.1	1.5
1-day Stressed VaR	7.5	1.4	3.4	4.7
Incremental risk	37.2	11.3	20.4	20.5

Backtesting

To confirm the suitability of the estimates of the

internal model, daily results are compared against

the losses estimated under the VaR technique, which

is what is referred to as backtesting. The risk estimate

model is checked in two ways:

| Though net or hypothetical backtesting, which

relates the portion of the daily marked-to-market

result of open positions at the close of the

previous session to estimated VaR over a one-

day time horizon, calculated on the basis of the

open positions at the close of the previous

session. This backtesting is the most appropriate

means of performing a self-assessment of the

methodology.

| Gross (or actual) backtesting that compares the

total result obtained during the day (including

intraday transactions) to VaR for a one-day time

horizon, calculated on the basis of the open

positions at the close of the previous session. This

provides an assessment of the importance of

intraday transactions in generating profit and

estimating the risk.

The daily result used in both exercises of backtesting

does not incorporate margins, reserves, fees or

commissions.

No significant incidents were detected during 2025.

Stress test

Two stress testing techniques are used on the value

of the trading positions to calculate the possible

losses on the portfolio in situations of extreme stress:

| Systematic stress: this technique calculates the

change in value of the portfolio in the event of a

specific series of extreme changes in the main

risk factors. It considers parallel interest rate shifts

(rising and falling); changes at various points of

the slope of the interest rate curve (steepening

and flattening); variation of the spread between

the instruments subject to credit risk and public

debt securities (bond-swap spread); shifts in the

EUR/USD curve differential; higher and lower

volatility of interest rates; variation of the euro

with respect to the USD, JPY and GBP; and

variation in exchange rate volatility, share prices;

and higher and lower volatility of shares and

commodities.

| Historical scenarios: this technique addresses the

potential impact of actual past situations on the

value of the positions held.

| Reverse Stress Test: a technique that assumes a

high-vulnerability scenario given the portfolio's

composition and determines what variations in

the risk factors lead to this situation.

Based on the set of measures described above, the

management of market risk on trading positions in

markets is in accordance with the methodological

and monitoring guidelines.

MITIGATION OF MARKET RISK

As part of the required monitoring and control of the

market risks taken, there is a structure of overall VaR

limits complemented by the definition sublimits,

stressed VaR and incremental default and migration

risk, Stress Test and Stop Loss results and sensitivities

for the various management units that could

assume market risk.

The risk factors are managed using economic

hedges on the basis of the return/risk ratio

determined by market conditions and expectations,

always within the assigned limits.

Beyond the trading book, fair-value hedge

accounting is used, which eliminates potential

accounting mismatches between the balance sheet

and statement of profit or loss caused by the

different treatment of hedged instruments and their

hedges at market values. In the area of market risk,

limits for each hedge are established and monitored,

in this case expressed as ratios between total risk

and the risk of the hedged items.

3.5. OPERATIONAL RISK

OVERVIEW

Operational risk is defined as the possibility of

incurring losses due to the failure or unsuitability of

processes, people, internal systems and external

events. Given the heterogeneity of the nature of

operational events, CaixaBank does not record

operational risk as a single element in the Corporate

Risk Catalogue, but rather it has included the

following risks of an operational nature: conduct and

compliance, legal and regulatory, technology and

other operational risks. For each of these risks in the

Catalogue, the Group upholds the corresponding

specific management frameworks, without prejudice

to the additional existence of an operational

corporate risk management policy.

CaixaBank integrates operational risk into its

management processes in order to deal with the

financial sector's complex regulatory and legal

environment. The overall objective of managing this

risk is to improve the quality of business

management, supplying relevant information to

allow decisions to be made that ensure the

organisation's long-term continuity, optimisation of

its processes and the quality of both internal and

external customer service. This objective comprises a

number of specific objectives that form the basis for

the organisation and working methodology for

managing operational risk. These objectives are:

| To identify and anticipate existing or emerging

operational risks.

| To adopt measures to sustainably mitigate and

reduce operational losses.

| To promote the establishment of systems for the

ongoing improvement of the operating process

and of the control structure.

| To exploit operational risk management

synergies.

| To promote an operational risk management

culture.

| To comply with the current regulatory framework

and requirements for the applicability of the

management and calculation models chosen.

OPERATIONAL RISK MANAGEMENT CYCLE

Identification and measurement of

operational risk

The internal operational risk database is the

information structure housing data on the Group's

operational losses. Operational risks are classified

into four categories or hierarchical levels, from more

generic to more specific or detailed:

| Tiers 1 and 2 of the regulations: Tier 1 comprises 7

subcategories (Internal Fraud; External fraud;

Employment practices and security in workplace;

Customers, products and business practices;

Damage to physical assets; Business

interruptions and system faults; and Execution,

delivery and process management), while Tier 2

comprises 20 subcategories.

| Tier 3 Group internal: represents the combined

individual risk of all the business areas and Group

companies.

| Tier 4 individual risks: represents the

materialisation of particular Tier 3 risks in a

process or activity.

The technological environment of the operational

risk system provides all the functionality required and

is fully integrated into the bank’s transactional and

information systems.

Operational risk is measured with the following

aspects:

Quantitative measurement

The database of internal operational loss events

serves as a fundamental element in managing

operational risk and is the primary source of data for

calculating economic capital.

An operational event is the implementation of an

identified operational risk, an event that causes an

operational loss. It is the concept around which the

entire data model revolves in the Internal Database.

Loss events are defined as each individual economic

impact related to an operational loss or recovery.

The Group uses the standardised method for

calculating regulatory capital requirements for

operational risk (SMA, Standardised Measurement

Approach for operational risk) (ä see Note 4).

However, the measurement and management of the

Group’s operational risk are supported by risk-

sensitive policies, processes, tools and

methodologies, in line with market practices.

Accordingly, the measurement of minimum capital

requirements provided by the regulatory SMA

methodology (calculated as the average of the last

three financial years based on a services

component, an interest component and a financial

component, derived from relevant items in the

statement of profit or loss and the balance sheet) is

used for supervisory reporting purposes and to

ensure compliance with minimum solvency levels. As

a complement, the Group has aligned itself with

international practices and has developed a model

for calculating economic capital requirements,

which covers all the risks of the Corporate Catalogue

included in the set of operational risks.

Qualitative measurement

Operational risks are subjected to self-assessments

on an annual basis, which make it possible to: i)

obtain knowledge of the operational risk profile and

new critical risks; and ii) maintain a standardised

process for updating the operational risk taxonomy,

which is the basis for operational risk management.

Annually, workshops and expert meetings are held to

create and revise extreme operational loss

scenarios. The purpose is for these scenarios to be

used to detect areas of improvement in the

management and to supplement the available

external and internal historical data on operational

losses.

There are also Key Risk Indicators (KRI) enabling the

Bank to: i) anticipate the expected trend in

operational risks and foster a forward-looking

approach to operational risk management; and ii)

provide information on changes in the operational

risk profile and their underlying drivers. A KRI is a

metric that detects and anticipates changes in said

risk, and its monitoring and management is

integrated in the operational risk corporate

management tool. KRIs are not by nature a direct

result of risk exposure. They are metrics that can be

used to identify and actively manage operational

risk.

Monitoring and mitigation of operational risk

With the aim of contributing to the sustainable and

recurring reduction of operational risks, an annual

forecast of operational losses is carried out, covering

the entire scope of management and enabling

monthly monitoring to analyse and, where

applicable, correct any possible deviations. The

degree of compliance with the forecast is monitored

periodically by the Operational Risks Committee,

where the main deviations are analysed taking

account of the nature of the operational losses and

the most and least effective mitigating actions.

The generation of action and mitigation plans is one

of the links in the Group's operational risk

management chain. The action and mitigation plans

may originate from any of the operational risk

management tools or other sources: self-

assessments, extreme scenarios, external sources

(ORX, specialised press), KRIs, losses due to

operational events, internal audits and internal

validation reports.

Therefore, with the aim of monitoring and mitigating

the operational risk, the following have been defined:

action plans that entail appointing a centre to be in

charge, setting out the actions to be undertaken to

mitigate the risk covered by the plan, the percentage

or degree of progress, which is updated regularly,

and the final commitment date. This allows

mitigation by (i) decreasing the frequency at which

the events occur, as well as their impact; (ii) holding

a solid structure of sustained control in policies,

methodologies, processes and systems; and (iii)

integrating —into the everyday management of the

Group— the information provided by operational risk

management levers.

In addition, the corporate insurance programme for

dealing with operational risk is designed to cover

certain risks, and it is updated annually. Risk transfer

depends on risk exposure, tolerance and appetite at

any given time.

OPERATIONAL RISK

The Corporate Risk Catalogue risks that are identified

in the regulatory framework as operational risk, are

described below.

3.5.1. COMPLIANCE AND CONDUCT RISK

Insofar as operational risk is concerned, according to

the regulatory definition, conduct and compliance

risk is defined as the Group's risk arising from the

application of conduct criteria that run contrary to

the interests of its customers and stakeholders, or

acts or omissions that are not compliant with the

legal or regulatory framework, or with internal codes

and rules, or with codes of conduct and ethical and

good practice standards. The objective of the Group

is: i) to minimise the probability of occurrence of this

risk; and ii) if it occurs, to detect, report and address

the weaknesses promptly.

The management of compliance and conduct risk is

not limited to any specific area, but rather the entire

Group. All employees must ensure compliance with

prevailing regulations, applying procedures that

capture regulations in their activity.

In order to manage conduct and compliance risk,

the Group drives the awareness-raising and

promotion of the values and principles set out in the

Code of Business Conduct and Ethics, and its

employees and other members of its governing

bodies must ensure that they are compliant as a

core criterion guiding their day-to-day activities.

Therefore, as the first line of defence, the areas

whose business is subject to conduct and

compliance risk implement and manage first-level

indicators or controls to detect potential sources of

risk and act effectively to mitigate them. In turn, the

compliance function, as a second line of defence,

identifies, evaluates, supervises and reports on the

risks of sanctions or financial losses to which the

entity is exposed as a result of non-compliance or

defective/inadequate compliance with laws,

regulations, judicial or administrative requirements,

codes of conduct or ethical standards and good

practices relating to its sphere of activity. Finally, the

third line of defence, represented by Internal Audit,

independently reviews and assesses the

effectiveness of the system of control and

management of these risks.

3.5.2. LEGAL AND REGULATORY RISK

Legal and regulatory risk is defined as the potential

loss or decrease in the profitability of the Group as a

result of changes in the legislation, of the incorrect

implementation of this legislation in the Group's

processes, of the inappropriate interpretation of the

same in various transactions, of the incorrect

management of court or administrative injunctions,

or of the claims or complaints received.

It is managed according to certain operational

principles, with a view to ensure that the appetite

and risk tolerance limits defined in the Group's RAF

are respected.

In this regard, the Group constantly monitors and

tracks regulatory changes in defence of greater

legal certainty and legitimate interests, mainly those

described in Note 3.1 in relation to the regulatory

environment. In this regard, the activities are

coordinated by the Regulation Committee, the body

responsible for defining the Group's strategic

position in financial-regulation-related matters,

driving the representation of the Group's interests

and coordinating the regular assessment of the

regulatory initiatives and proposals that may affect

the Group.

The Group also undertakes regulatory

implementation, which involves creating or

modifying contracts, processes, and systems to

comply with new regulations. The Transparency

Committee is tasked with ensuring transparency in

the marketing of financial products and services. It

approves new products or services by adhering to

transparency and customer protection regulations.

Additionally, it refers significant products to the

Product Strategy Committee, which outlines

strategies for new products and services. Both

committees oversee adherence to consumer

protection and privacy laws for all initiatives. The

Privacy Committee specifically ensures compliance

with privacy regulations and the safeguarding of

customers' personal data.

To ensure the correct interpretation of the

regulations, in addition to studying case law and

decisions of the competent authorities in order to

adjust their actions to those criteria, consultations

are also made with the relevant administrative

authorities when necessary.

In relation to the claims filed with the Customer

Service Office, as well as the sustained flow of

existing litigiousness, the Group has policies, criteria,

analysis and monitoring procedures for these judicial

claims and processes. These enable the Group to

gain better knowledge of the activities that it

develops, to identify and establish ongoing

improvement in contracts and processes, to

implement measures to raise awareness on

regulations and early restoration of customers' rights

in the event of any incidents, through agreements

and establishing the appropriate accounting

provisions, in the form of provisions, in order to cover

hypothetical financial damages whenever they are

deemed likely.

3.5.3. TECHNOLOGICAL RISK

Also within the framework of operational risk,

technology risk in the Corporate Risk Catalogue is

defined as the risk of losses due to the inadequacy or

failures of the hardware or software of technological

infrastructure, due to cyber attacks or other

circumstances that may compromise the

availability, integrity, accessibility and security of

infrastructure and data. The risk is broken down into 5

categories affecting ICT (Information and

Communication Technologies): i) availability; ii)

information security; iii) change management and

operation; iv) data integrity; and v) governance and

strategy.

The current measurement is integrated into an

ongoing monitoring RAF indicator, which is

calculated through a thorough analysis of individual

indicators connected to various aspects of

technology risk. Regular reviews are carried out by

sampling, which make it possible to check the quality

of the information and the methodology used in

creating the indicators reviewed.

The internal governance frameworks associated with

different fields of technology risk have been

designed according to renowned international

standards and/or they are aligned with the

guidelines published by different supervisors:

| IT Governance: designed and developed

according to the ISO 38500 standard.

| IT contingency: designed and developed

according to the ISO 27031 standard.

| Governance of information and data quality:

designed and developed in accordance with

BCBS 239 (Basel Committee on Banking

Supervision).

| Information security: develops its reference

framework on the basis of the requirements

defined by international best-practice

information security standards, such as the ISO/

IEC 27001 family of standards. These standards,

together with the obligations established by

prevailing laws and regulations and the

requirements of local and sectoral supervisors,

make up the CaixaBank Group’s Information

Security Regulatory Framework. Compliance with

this framework is continuously monitored and

regularly reported to key stakeholders, both

internal and external to the organisation.

CaixaBank has recognised certifications,

including ISO/IEC 27001 for the group's

cybersecurity services and the National Security

Scheme (ENS) for certain services provided to

the public administration, which endorse its

commitment to information protection.

With the different frameworks of governance and

management systems, CaixaBank seeks to

guarantee:

| Compliance with recommendations issued by

regulators: Bank of Spain, European Central Bank,

etc.

| Maximum security in its transactions, both in

regular processes and in one-off situations.

And it also demonstrates to its customers, investors,

and other stakeholders:

| Its commitment to the governance of

information technologies, and business security

and continuity.

| The implementation of management systems

according to most renowned international

standards.

| The existence of different cyclical processes

based on ongoing improvement.

Similarly, CaixaBank has been designated a critical

infrastructure operator by virtue of the provisions of

Act 8/2011 and is under the supervision of the National

Centre for the Protection of Critical Infrastructures

dependent on the State Secretary of Home Office

Security.

Furthermore, CaixaBank holds a general emergency

plan and various internal regulations on security

measures, which include priority aspects such as: i)

cybersecurity strategy; ii) combating customer and

internal fraud; iii) information protection; iv) security

disclosure and governance; and v) supplier security.

CaixaBank's second line of defence has a reference

framework for this risk, based on international

standards, which is used to assess the effectiveness

of the control environment and measure the level of

residual risk, establishing mitigation plans where

necessary.

3.5.4. OTHER OPERATIONAL RISKS

In the Corporate Risk Catalogue, this means losses or

damages caused by errors or faults in processes,

due to external events, or actions of third parties

outside the Group, whether accidentally or

intentionally. This includes risk factors related to

outsourcing, business continuity and external fraud.

All of the Group's areas and companies are

responsible for the set of other operational risks that

arise within their respective remits. This means

identifying, assessing, managing, controlling and

reporting the operational risks of their activity and

helping CaixaBank's Non-Financial Risk Division to

implement the management model throughout the

Group.

CaixaBank's second line of defence has control

frameworks for these risks, which enable the

effectiveness of the control environment to be

assessed and the level of residual risk to be

measured, establishing mitigation plans where

necessary. The reports are submitted to

management and governing bodies, in accordance

with the established arrangements.

4. Capital adequacy

management

The composition of the Group’s eligible own funds is as follows:


_ELIGIBLE OWN FUNDS
(Millions of euros)
			31-12-2025			31-12-2024			31-12-2023
			Amount	Ratio	Regulatory ratio	Amount	Ratio	Regulatory ratio	Amount	Ratio	Regulatory ratio
Net equity			38,526			36,865			36,339
	Shareholders’ equity		38,962			37,425			38,206
		Capital (Note 21)	7,025			7,175			7,502
		Profit	5,891			5,787			4,816
		Reserves and others	26,046			24,463			25,888
	Minority interests and OCI		(436)			(560)			(1,867)
Other CET1 instruments			(2,554)			(2,599)			(2,664)
	Adjustments applied to the eligibility of minority interests/ OCI		223			227			279
	Other adjustments (1)		(2,777)			(2,826)			(2,943)
CET1 Instruments			35,972			34,266			33,675
Deductions from CET1			(5,199)			(5,254)			(5,362)
	Intangible assets		(3,623)			(3,534)			(3,489)
	Deferred tax assets		(1,046)			(1,436)			(1,544)
	Other CET1 deductions		(530)			(284)			(329)
CET1			30,773	12.6 %	12.3 %	29,012	12.2 %	12.2 %	28,313	12.4 %	12.4 %
AT 1 instruments (2)			4,768			4,266			4,487
AT1 deductions
TIER 1			35,541	14.5 %	14.2 %	33,278	14.0 %	14.0 %	32,800	14.4 %	14.4 %
T2 instruments (3)			7,336			6,321			6,309
T2 Deductions
TIER 2			7,336	3.0 %	3.0 %	6,321	2.7 %	2.7 %	6,309	2.8 %	2.8 %
TOTAL CAPITAL			42,877	17.5 %	17.2 %	39,599	16.6 %	16.6 %	39,109	17.1 %	17.1 %
Other computable subordinate MREL items			17,681			18,702			14,001
MREL, SUBORDINATED (4)			60,558	24.8 %	24.4 %	58,301	24.5 %	24.5 %	53,110	23.3 %	23.3 %
Other computable MREL items			7,245			8,492			8,190
MREL (4)			67,803	27.7 %	27.4 %	66,793	28.1 %	28.1 %	61,300	26.8 %	26.8 %
RISK WEIGHTED ASSETS (RWA)			244,455			237,969			228,428
LEVERAGE RATIO (TIER 1/EXPOSURE)				5.7 %	5.6 %		5.7 %	5.7 %		5.8 %	5.8 %
Exposure			619,213			588,103			563,578

RATIOS FOR CAIXABANK STANDALONE:
			Amount	Ratio	Regulatory ratio	Amount	Ratio	Regulatory ratio	Amount	Ratio	Regulatory ratio
	CET1		28,234	12.3 %	11.9 %	26,449	11.7 %	11.7 %	26,009	12.1 %	12.1 %
	TIER 1		33,002	14.3 %	14.0 %	30,715	13.6 %	13.6 %	30,497	14.2 %	14.2 %
	Total capital		40,283	17.5 %	17.1 %	36,944	16.4 %	16.4 %	36,804	17.1 %	17.1 %
	RWAs		230,223			225,879			215,492
(*) From 2025, in line with supervisory expectations, regulatory ratios should include a deduction in CET1 of any surplus above the threshold for extraordinary capital distributions.
(1) Includes mainly the dividend forecast, the non-utilised amount of the share buyback programme (SBB VII, ä see Note 21) and the AVAs.
(2) In 2025, two new issuances of AT1 instruments were carried out for a total amount of 1,500 million euros and, at the same time, 1,005 million euros of a previous AT1 issuance was repurchased through a buyback transaction (ä see Note 19).
(3) In 2025, two issuances of subordinated debt instruments were carried out for a total amount of 2,000 million euros, and the early redemption of an issuance of 1,000 million euros (ä see Note 19).
(4) ä See Note 19 for the balances of the senior preferred and senior non-preferred issuances made during the year.

The causative details of the main aspects of the financial year that have influenced the CET1 ratio are set out

below:


_CET1 DEVELOPMENTS IN 2025

The Common Equity Tier 1 (CET1) ratio reached stood

at 12.6%. This ratio reflects the extraordinary impact of

+20 basis points (bps) resulting from the entry into

force in January 2025 of the CRR3 regulation (Basel

IV), and, on the other hand, the extraordinary impact

of −21 bps from the SBB VII share buyback

programme (ä see Note 21), announced on 31

October 2025 for 500 million euros.

The trend in the CET1 ratio in the year, excluding the

two extraordinary impacts mentioned above,

amounts to +41 basis points and is due to capital

generation (+270 bps), offset by the organic growth

of risk-weighted assets (-68 bps), the expected

dividend charged to profit for the year (59.4 %

payout) and the AT1 coupon payment (-154 bps), as

well as market performance and other effects (-6

bp).

The Group's current level of capital adequacy

confirms that the applicable requirements would not

lead to any automatic restrictions according to the

capital adequacy regulations, regarding the

distribution of dividends, variable remuneration, and

interest to holders of Additional Tier 1 capital

securities. At 31 December 2025, CaixaBank had a

margin of 354 basis points, equivalent to 8,662 million

euros, to the Group’s MDA trigger.

The current Strategic Plan 2025-2027 sets an internal

target CET1 solvency ratio between 11.5 % and 12.5 %,

with a transitional 11.5 % - 12.25 % by 2025. The upper

limit of the target sets the threshold for possible

extraordinary capital distributions (subject to BCE

and Board approvals).

As of 31 December 2025, the regulatory CET1 ratio

stood at 12.25 %, after deducting the excess capital

above the upper limit of the 2025 target.

The following chart sets out a summary of the

minimum requirements of eligible own funds:


_MINIMUM REQUIREMENTS
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Amount	In %	Amount	In %	Amount	In %
BIS III MINIMUM REQUIREMENTS
	CET1 *	22,111	9.05 %	20,649	8.68 %	19,476	8.53 %
	Tier 1	26,582	10.87 %	25,001	10.51 %	23,610	10.34 %
	Total capital	32,539	13.31 %	30,800	12.94 %	29,120	12.75 %
MINIMUM MREL REQUIREMENTS **
In % of RWS (including current CBR) ***
Subordinated MREL			17.06 %		16.69 %		16.60 %
Total MREL			24.83 %		24.42 %		22.43 %
In % Leverage ratio exposure (LRE)
Subordinated MREL			6.04 %		6.15 %		6.09 %
Total MREL			6.04 %		6.15 %		6.09 %
(*) Includes the Pillar 1 minimum requirement of 4.5 %; Pillar 2 (supervisory review process) requirement of 0.98 %; the capital conservation buffer of 2.5 %, the estimated countercyclical buffer of 0.50 % (updated quarterly), the O-SII (Other Systemically Important Institutions) buffer of 0.50 % and the sectoral systemic buffer for retail exposures secured by residential properties in Portugal of 0.06 %.


(**) The M-MDA MREL margin as at 31 December stood at 291 basis points (7,103 million euros).
(***) CBR: Combined buffer requirement (3.56 % in December 2025; 3.63 % estimated as from 1 January 2026).

The changes in eligible own funds are as follows:


_CHANGES IN ELIGIBLE OWN FUNDS
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Amount	In %	Amount	In %	Amount	In %
CET1 AT THE START OF THE YEAR		29,012	12.2 %	28,313	11.9 %	27,494	12.0 %
Changes in CET1 instruments		1,707		591		214
	Capital	(150)		(327)
	Profit	5,891		5,787		4,816
	Expected dividends	(3,499)		(3,096)		(2,889)
	Reserves	(1,000)		(2,279)		(1,519)
	OCIS and other	465		506		(194)
Changes in deductions from CET1		54		108		605
	Intangible assets	(89)		(45)		(25)
	Deferred tax assets	389		108		357
	Other deductions from CET1	(246)		45		273
CET1 AT THE END OF THE YEAR		30,773	12.6 %	29,012	12.2 %	28,313	12.4 %
ADDITIONAL TIER 1 AT THE START OF THE YEAR		4,266	1.8 %	4,487	1.9 %	4,238	1.9 %
Changes in AT1 instruments (1)		502		(221)		249
	Preference issues	1,500		750		750
	Redemption of issuances	(1,005)		(1,000)		(500)
	Other (2)	7		29		(1)
ADDITIONAL TIER 1 AT THE END OF THE YEAR		4,768	2.0 %	4,266	1.8 %	4,487	2.0 %
TIER 2 AT THE START OF THE YEAR		6,321	2.7 %	6,309	2.8 %	5,575	2.4 %
Changes in Tier 2 instruments (1)		1,015		12		734
	Subordinated issuances	2,000		1,000		1,564
	Redemption of issuances	(1,000)		(1,000)		(1,000)
	Other (3)	15		12		170
TIER 2 AT THE END OF THE YEAR		7,336	3.0 %	6,321	2.7 %	6,309	2.8 %
(1) ä See Note 19 for Tier 1 and Tier 2 instruments issued and redeemed in the year.
(2) Accounts for the earned interest and the value of the hedging related to the AT1 issues, following EBA recommendations, including the portion that is not computable.
(3) Accounts for the earned interest and the value of the hedging related to the Tier 2 issues, following EBA recommendations, including the portion that is not computable. It also includes the change in the surplus of IRB provisions.

Information on capital requirements by risk calculation method is presented below:


_BREAKDOWN OF RISK WEIGHTED ASSETS BY METHOD
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Amount	%	Amount	%	Amount	%
Credit risk *		199,973	81.8 %	196,645	82.6 %	188,636	82.6 %
	STD approach	72,209	29.5 %	65,517	27.5 %	66,881	29.3 %
	IRB Approach	127,764	52.3 %	131,128	55.1 %	121,755	53.3 %
Equity portfolio risk		12,956	5.3 %	17,975	7.6 %	18,837	8.2 %
Market risk		1,742	0.7 %	1,035	0.4 %	982	0.4 %
Operational risk		29,784	12.2 %	22,314	9.4 %	19,973	8.7 %
TOTAL		244,455	100.0 %	237,969	100.0 %	228,428	100.0 %
(*) Includes deferred tax assets (DTAs) and securitisations.

EUROPEAN BANKING SECTOR STRESS TEST

The Group participated in the 2025 EU-wide stress

test on the European banking sector, conducted by

the European Banking Authority (EBA) in collaboration

with the ECB and the European Systemic Risk Board

(ESRB). The exercise has a reference date of 31

December 2024 and covers a three-year period

(2025–2027) in two scenarios: baseline and adverse.

The test allows it to assess CaixaBank's strength

under adverse economic scenarios and compare it

to the rest of participating European banks.

This financial year adds the application of the new

Capital Requirements Regulations (CRR3), which is

why the information as at 31 December 2024 has

been restated taking into account the above-

mentioned regulations. Although the test does not

establish a failure or approval threshold, the results

constitute a major source of information within the

Supervisory Review and Evaluation Process (SREP) in

2025.

The following results were obtained:

| In the baseline scenario, the fully loaded CET 1

ratio as at 31 December 2027 would increase by

205 bp to 14.47 % from the restated 12.42 %

baseline under CRR3.

| In the adverse scenario, the fully loaded CET 1

ratio as at 31 December 2027 would fall by 162 bp

to 10.80 % from the restated 12.42 % at the starting

point under CRR3.

5. Appropriation of profit/(loss)

The distribution of CaixaBank, S.A.’s profit for 2025, which the Board of Directors, based on the information

available at the date of preparation of these financial statements, has agreed to submit to the Annual General

Meeting for approval, is presented below:


_APPROPRIATION OF PROFITS OF CAIXABANK, S.A.
(Millions of euros)
		Amount	Euros per share
Basis of appropriation
Profit/(loss) for the year		5,987
Distribution
To dividends (1)		3,499	0.5000
	To interim dividend	1,179
	To final dividend (2)	2,320
To reserves (3)		2,488
	To legal reserve (4)
	To voluntary reserve (5) (6)	2,488
NET PROFIT/(LOSS) FOR THE YEAR		5,987
(1) Total estimated amount (see Note 2 below).
(2) Amount corresponding to the payment of the final dividend of 0.3321 euros per share, to be paid in cash on 9 April 2026. It is hereby stated that the total amount of the final dividend has been determined on the assumption that, as a result of the execution process of the share buyback programme whose approval was announced by means of a communication of Inside Information dated 31 October 2025, and the commencement of which on 25 November 2025 was announced by means of an Other Relevant Information disclosure dated 24 November 2025, currently under way, the number of shares outstanding of the Bank entitled to receive the dividend as at the payment date will be 6,984,518,326. The aim of this share buyback programme is to reduce CaixaBank’s share capital by redeeming the treasury shares thus acquired. Therefore, the total amount of the final dividend may be higher if fewer shares than expected are acquired under the buyback programme, or lower if the opposite occurs. Should the Company hold more treasury shares than estimated at the dividend payment date, the amount of the dividend corresponding to these additional treasury shares shall be applied to voluntary reserves.
(3) Estimated amount (see note (5) later).
(4) It is not necessary to transfer part of the profit for the year 2025 to the legal reserve as this already amounts to 20 % of the share capital (Article 274 of the Capital Companies Act).
(5) Estimated amount to be allocated to the voluntary reserve. This amount shall be increased or reduced by the same amount by which the total amount of the supplementary dividend is lower or higher, respectively, than the estimated supplementary dividend. (See Notes 1 and 2 above).
(6) Remuneration on AT1 capital instruments corresponding to 2025, totalling 278 million euros, will be deemed to have been paid, with this amount charged to voluntary reserves.

6. Shareholder remuneration

and earnings per share

6.1. SHAREHOLDER REMUNERATION

On 24 April 2025, the Bank paid its shareholders a

gross dividend of 0.2864 euros per share as a

complementary dividend charged against profits for

the 2024 financial year, as approved by CaixaBank’s

Annual General Meeting (AGM) on 11 April 2025.

On 29 January 2025, the Board of Directors approved

the 2025 Dividend Plan consisting of a cash

distribution of 50–60 % of consolidated net profit,

including an interim dividend. In accordance with the

aforementioned dividend plan,

| On November 7, the interim dividend payment

was made, representing 40 % of the consolidated

net profit for the first half of 2025, for a total of

1,179 million euros (16.79 euro cents gross per

share).

The liquidity statement prepared by CaixaBank

to evidence the existence of sufficient income

and liquidity for the distribution of the

aforementioned interim dividend is as follows.


_CAIXABANK’S LIQUIDITY ADEQUACY AND RESULTS
(Millions of euros)
	30-09-2025
Actual liquidity *	95,443
Potential liquidity **	158,757
High-quality liquid assets	106,645
High-quality liquid assets + available eligible assets that are not high-quality liquid assets ***	162,032
Balance in current accounts	50,383
MAXIMUM AMOUNT PAYABLE	1,181
PROFIT/(LOSS) AFTER TAX	4,666
(*) Essentially cash on hand, the interbank balance and unencumbered sovereign debt, less the balance to be withheld as a cash ratio.
(**) Includes, in addition to actual liquidity, the amount available under credit facilities and available eligible assets.
(***) Includes the amount available under credit facilities and other eligible assets available that are not included in high-quality liquid assets.

| On 29 January 2026, the Board of Directors

agreed to propose to the General Meeting of

Shareholders the distribution of a final cash

dividend of 2,320 million euros, equivalent to 33.21

gross euro cents per share, charged to 2025

profits and payable in April 2026. With this

second dividend payment, the total amount of

shareholder remuneration for 2025 will be

equivalent to 59.4 % of consolidated net profit

(50.00 gross euro cents per share).

The following dividends were distributed in recent

years:


_DIVIDENDS PAID IN CASH
(Millions of euros)
	Euros/ share	Amount paid	Date of announce ment	Payment date
2025
Supplementary dividend 2024 *	0.2864	2,028	29-01-2025	24-04-2025
Interim dividend - 2025	0.1679	1,179	30-10-2025	07-11-2025
2024
Final dividend for 2023 **	0.3919	2,876	02-02-2024	03-04-2024
Interim dividend - 2024	0.1488	1068	30-10-2024	07-11-2024
2023
Dividend 2022	0.2306	1730	02-02-2023	12-04-2023
(*) This dividend, corresponding to the financial year 2024, is in addition to the interim dividend announced on 30 October 2024 amounting to 1,068 million euros and paid on 7 November 2024.
(**) Net amount of the dividend corresponding to treasury shares (13 million euros).

With regard to the 2026 dividend plan, the Board of

Directors, at its meeting held on 29 January 2026,

approved maintaining the same dividend policy for

2026, namely a cash distribution of between 50 %

and 60 % of consolidated net profit, payable in two

instalments: an interim dividend, amounting to

between 30 % and 40 % of the consolidated net profit

for the first half of 2026 profit (to be paid in

November 2026) and a final dividend, subject to final

approval by the AGM (to be paid in April 2027). The

threshold to pay out the excess capital in 2026 is set

at 12.50 % of CET1.

In addition, details of the share buy-back

programmes (SBB, share buyback) included in the

framework of the current Strategic Plan are available

in Note 21).

6.2. EARNINGS PER SHARE

Basic and diluted earnings per share of the Group are as follows:


_CALCULATION OF BASIC AND DILUTED EARNINGS PER SHARE
(Millions of euros)
	31-12-2025	31-12-2024	31-12-2023
Numerator	5,613	5,520	4,539
Profit attributable to the Parent	5,891	5,787	4,816
Less: Preference share coupon amount (AT1)	(278)	(267)	(277)
Denominator (thousands of shares)	7,060	7,262	7,470
Average number of shares outstanding (1)	7,060	7,262	7,470
Adjusted number of shares (basic earnings per share)	7,060	7,262	7,470
BASIC EARNINGS PER SHARE (IN EUROS) (2)	0.79	0.76	0.61
DILUTED EARNINGS PER SHARE (EURO) (3)	0.79	0.76	0.61
(1) Number of shares outstanding at the beginning of the year, excluding average number of treasury shares held during the period. Includes the retrospective adjustments set out in IAS 33.
(2) If the profit/loss of CaixaBank (non-consolidated basis) in 2025, 2024 and 2023 had been considered, the basic profit would be 0.81, 0.73 and 0.54 euros per share, respectively.
(3) Preference shares did not have any impact on the calculation of diluted earnings per share, since their capacity to be convertible was unlikely. Additionally, equity instruments associated with remuneration components were not significant.

7. Buying and selling of

businesses

BUSINESS COMBINATIONS, ACQUISITION AND DISPOSAL OF

OWNERSHIP INTERESTS IN SUBSIDIARIES

No significant transactions have taken place during the financial years 2025, 2024 and 2023 .

8. Segment information

The objective of business segment reporting is to

allow internal supervision and management of the

Group’s activity and profits. The information is broken

down into several lines of business according to the

Group’s organisation and structure.

The segments are defined and segregated taking

into account the inherent risks and management

characteristics of each one, based on the basic

business units which have accounting and

management figures. The following is applied to

create them:

The following are applied as part of their preparation:

(i) the same presentation principles used in the

Group’s management information; and (ii) the same

accounting principles and policies used to draw up

the financial statements.

The Group is made up of the following business

segments:

BANKING AND INSURANCE

| Shows earnings from the Group’s banking,

insurance, asset management, real estate and

ALCO activities, among others, carried out

predominantly in Spain.

| Presents an integrated Bancassurance

management model. Under a regulatory

framework with similar accounting and

supervision objectives, sales and risks are

managed jointly, as the model is integrated. The

results of the Banking-Insurance business are

presented as a single business segment in the

segment reporting because of this integrated

Banking-Insurance management model.

BPI

| covers the income from the BPI's domestic

banking business, essentially in Portugal.

CORPORATE CENTRE

| Includes the investees assigned to the Equity

Stakes Business in the current business

segmentation, i.e. BFA, BCI, Coral Homes, Gramina

Homes and Telefónica (until their sale in June

2024). This line of business shows earnings from

the stakes net of funding expenses.

| In addition, the Group's excess capital is

allocated to the corporate centre, which is

calculated as the difference between the

Group's total shareholders' equity and the capital

assigned to the Banking and Insurance business,

BPI and the investees allocated to the corporate

centre. Specifically, the allocation of capital to

these businesses and investees takes into

account the 11.5 % capital consumption for risk-

weighted assets, as well as any applicable

deductions. Liquidity is the counterpart of the

excess capital allocated to the corporate centre.

| The operating expenses of these business

segments include both direct and indirect costs,

which are assigned according to internal

distribution methods. Specifically, the corporate

expenses at Group level are assigned to the

corporate centre.

The performance of the Group by business segment

is shown below:


_CONSOLIDATED STATEMENTS OF PROFIT OR LOSS OF THE CAIXABANK GROUP – BY BUSINESS SEGMENT
(Millions of euros)
	Banking and insurance						BPI			Corporate centre
	2025		2024		2023		2025	2024	2023	2025	2024	2023
		Of which insurance		Of which insurance		Of which insurance	2025	2024	2023	2025	2024	2023
Interest income	16,509	1,928	19,142	1,956	16,677	1,758	1,345	1,616	1,390	167	139	156
Interest expense	(6,828)	(1,769)	(9,078)	(1,704)	(7,537)	(1,593)	(499)	(655)	(462)	(23)	(56)	(111)
NET INTEREST INCOME	9,681	159	10,064	252	9,140	165	846	961	928	144	83	45
Dividend income	4		4		28		7	8	2	50	88	133
Share of profit/(loss) of entities accounted for using the equity method	288	280	228	211	263	250	18	20	19	(18)	13	(1)
Net fee and commission income	3,660	149	3,451	148	3,367	152	307	327	291
Gains/(losses) on financial assets and liabilities and others	231	18	196	14	252	9	22	31	25	(6)	(4)	(42)
Profit/(loss) from the insurance service	1,300	1,283	1,216	1,195	1,118	1,108
Other operating income and expense	(261)	5	(790)	5	(1,254)		4	(19)	(77)	(6)	(4)	(6)
GROSS INCOME	14,902	1,892	14,369	1,825	12,914	1,684	1,204	1,328	1,188	164	176	129
Administrative expenses	(5,112)	(114)	(4,833)	(152)	(4,562)	(112)	(442)	(434)	(425)	(70)	(63)	(60)
Depreciation and amortisation	(720)	(50)	(711)		(695)	(48)	(68)	(64)	(76)	(2)	(3)	(3)
PRE-IMPAIRMENT INCOME	9,070	1,728	8,825	1,673	7,657	1,524	694	830	687	91	110	66
Impairment losses on financial assets and other provisions	(1,096)		(1,313)	(3)	(1,258)	(3)	(28)	(96)	(85)
NET OPERATING INCOME/(LOSS)	7,974	1,728	7,512	1,672	6,399	1,521	666	734	602	91	110	66
Gains/(losses) on disposal of assets and others	(45)	4	(29)	(3)	(85)	1		1	(10)	(12)	(9)	(48)
PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS	7,929	1,731	7,483	1,669	6,314	1,522	666	735	592	79	101	18
Income tax	(2,566)	(419)	(2,295)	(430)	(1,950)	(375)	(193)	(231)	(173)	(16)	1	15
PROFIT/(LOSS) AFTER TAX FROM CONTINUING OPERATIONS	5,363	1,312	5,188	1,239	4,364	1,147	473	504	419	62	102	33
Profit/(loss) attributable to minority interests	8		7
PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP	5,355	1,312	5,181	1,239	4,364	1,147	473	504	419	62	102	33
Total assets	615,618	97,971	585,094	93,701	562,423	88,947	42,709	40,977	38,524	5,713	4,932	6,220

The income of the Group by segment, geographical area and distribution of ordinary income is as follows:


_DISTRIBUTION OF INTEREST AND SIMILAR INCOME BY GEOGRAPHICAL AREA
(Millions of euros)
		CaixaBank			CaixaBank Group
		2025	2024	2023	2025	2024	2023
Domestic market		13,067	15,957	14,057	15,429	18,128	16,034
International market		1,204	1,126	786	2,592	2,769	2,189
European Union		1,194	1,117	778	2,578	2,758	2,175
	Eurozone	783	749	492	2,166	2,390	1,889
	Non-eurozone	411	368	286	412	368	286
Other countries		10	9	8	14	11	14
TOTAL		14,271	17,083	14,843	18,021	20,897	18,223


_DISTRIBUTION OF ORDINARY INCOME *
(Millions of euros)
		Ordinary income from customers			Ordinary income between segments			Total ordinary income
		2025	2024	2023	2025	2024	2023	2025	2024	2023
Banking and insurance		25,202	27,052	24,790	117	127	140	25,319	27,179	24,930
	Spain	23,533	25,592	23,701	117	127	140	23,650	25,719	23,841
	Other countries	1,669	1,460	1,089				1,669	1,460	1,089
BPI		1,704	1,972	1,686	78	83	82	1,782	2,055	1,768
	Portugal/Spain	1,704	1,972	1,685	78	83	82	1,782	2,055	1,767
	Other countries			1						1
Corporate centre		26	96	89	155	121	122	181	217	211
	Spain	(33)	16	17	121	89	88	88	105	105
	Other countries	59	80	72	34	32	34	93	112	106
Ordinary adjustments and eliminations between segments					(350)	(331)	(344)	(350)	(331)	(344)
TOTAL		26,932	29,120	26,565				26,932	29,120	26,565

(*) Corresponding to the following items in the Group's public statement of profit or loss:
1. Interest income
2. Dividend income
3. Share of profit/(loss) of entities accounted for using the equity method
4. Fee and commission income
5. Gains/(losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net
6. Gains (losses) on financial assets and liabilities held for trading, net
7. Gains (losses) on non-trading assets mandatorily measured at fair value through profit or loss, net
8. Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net
9. Gains (losses) from hedge accounting, net
10. Other operating income
11. Insurance revenue

9. Remuneration of “key

management personnel”

9.1. REMUNERATION OF THE BOARD OF DIRECTORS

At the Annual General Meeting (AGM) of CaixaBank

held on 11 April 2025, a new remuneration policy for

the Board of Directors was approved, applicable

from the date of its approval and until 2028, inclusive,

in accordance with the remuneration scheme set

out in the Articles of Association and which is also

included in the Regulations of the Board of Directors,

according to the provisions of the Spanish Capital

Companies Law and Act 10/2014, of 26 June, on the

organisation, supervision and capital adequacy of

credit institutions.

Article 34 of CaixaBank's By-laws stipulates that the

position of director shall be remunerated and that

this remuneration shall consist of a fixed annual sum

with a maximum amount determined by the AGM

and which shall remain in force until the AGM agrees

to modify it. This maximum amount shall be used to

remunerate all the Directors in their condition as

such and shall be distributed as deemed

appropriate by the Board, upon the proposal of the

Remuneration Committee, both in terms of

remuneration to members, and according to the

duties and position of each member and to the

positions they hold in the various Committees, and

other objective circumstances that it deems

relevant, which may give rise to different

remuneration for each of them. In addition, subject

to the resolution and within the maximum amount

approved at the aforementioned AGM, the directors

may be remunerated through the delivery of shares

in the Company or in another listed company of the

Group to which it belongs, options thereon or

remuneration indexed to the value of the shares.

The remuneration of directors in their capacity as

such —who maintain an organic relationship with

CaixaBank, and consequently do not have contracts

entered into with the Company for exercising their

functions or receive any kind of payment for

termination of their position as director— consists

solely of fixed components.

Notwithstanding the foregoing, executive directors

will be entitled to receive remuneration for the

performance of their executive duties, consisting of a

fixed amount, a supplementary variable amount and

incentive schemes, as well as a portion of

remuneration that may include the appropriate

pension and insurance schemes and, where

applicable, Social Security, to be determined by the

Board upon the proposal of the Remuneration

Committee. The performance of execution functions

may be remunerated by granting shares in the

Company or in other publicly traded Group

companies, options or other share-based

instruments or by other remuneration pegged to the

value of the shares. In the event of departure not

caused by a breach of their functions, directors may

be entitled to compensation.

Furthermore, given the considerable practical

complexity of an independent policy, the directors

are insured under the Group's civil liability policy for

directors and executives, covering any liabilities they

may incur through the performance of their duties. In

2025, the gross premium on the corporate civil

liability insurance policy amounted to 2,064

thousand euros.

Details of remuneration and other benefits received

by the members of the Board of Directors of

CaixaBank for their membership in that body in those

years are as follows:


_REMUNERATION OF THE BOARD OF DIRECTORS
(Thousands of euros)
		Fixed components					Variable components		Long- term savings system	Other items (4)
	Position	Salary	Remunera- tion for being on the Board	Remuneration for being on Board committees	Remunera- tion for positions in Group companies	Remuneration for being on Boards outside the Group (5)	Variable remunera- tion in cash	Share- based remunera- tion schemes	Long- term savings system	Other items (4)	Total 2025	Total 2024	Total 2023
Goirigolzarri, Jose Ignacio (1) *												2,299	2,251
Muniesa, Tomás (1)	Chairman		1,551.0	90.0		16.6					1,657.6	652	646
Moraleda, María Amparo (1)	Deputy Chairwoman		110.0	159.0							269.0	233	234
Gortazar, Gonzalo	Chief Executive Officer *	2,103.8	110.0	60.0	308.7		729.4	1,190.1	562.9	128.7	5,193.6	4,505	4,145
Álvarez, Luis (1)	Director		71.9	47.0							118.9
Ayuso, Joaquín (1)			30.9	27.0							57.9	184	179
Campo, Francisco Javier (1)			30.9	38.7							69.6	216	202
Castillo, Eva (1)			30.9	42.1							72.9	233	214
Fisas, M. Verónica	Director		110.0	60.0							170.0	151	160
Forero, Pablo Arturo (1)	Director		63.6	55.5	45.3						164.3
García, Rosa María (1)	Director		79.4	73.7							153.1
Garmendia, Cristina	Director		110.0	188.3							298.3	216	210
Löscher, Peter (3)	Director		110.0	78.0							188.0	162	99
Méndez, José María (1)	Director		56.5	49.3							105.9
Reed, John S. (3)													45
Sánchez, Bernardo (1)	Director		65.6	57.3							122.9
Sanchiz, Eduardo Javier (3)	Lead Director		153.0	192.0							345.0	305	287
Santero, Teresa	Director		110.0	60.0							170.0	151	147
Serna, José (1)			30.9	26.9							57.8	184	179
Ulrich, Fernando Maria (2)	Director		110.0	102.0	750.0						962.0	934	929
Usarraga, Koro	Director		110.0	186.0							296.0	266	264
TOTAL **		2,103.8	3,044.5	1,592.8	1,104.0	16.6	729.4	1,190.1	562.9	128.7	10,472.8	10,693	10,188
(*) During 2024 and 2023, he performed executive functions jointly with Jose Ignacio Goirigolzarri.
(**) The detailed figures have been determined on an accrual basis. In contrast to the Annual Directors’ Remuneration Report, the annual financial statements include; (i) contributions to the long-term savings scheme (although these contributions are not vested); (ii) remuneration received for membership of non-group boards; and (iii) variable remuneration accrued during the year, regardless of whether it is deferred.
(1) In 2025, Tomás Muniesa was appointed Chairman, María Amparo Moraleda Deputy Chairwoman, and Rosa María García, Luis Álvarez, Bernardo Sánchez, Pablo Arturo Forero and José María Méndez as non-executive directors. Jose Ignacio Goirigolzarri, Joaquín Ayuso, Francisco Javier Campo, Eva Castillo and José Serna stepped down in 2025.
(2) The positions held at BPI are not on behalf of CaixaBank Group.
(3) In 2023, Peter Löscher was appointed as independent Director and Eduardo Sanchiz as Coordinating Director. Additionally, John S. Reed stepped down in 2023.
(4) Includes remuneration in kind (health and life insurance premiums paid in favour of executive directors), interest accrued on deferred variable remuneration in cash, other insurance premiums paid and other benefits.
(5) Remuneration received for representation of the Bank on the Boards of Directors of listed companies outside the consolidate group, which is recognised on the statements of profit or loss of the companies concerned.

CaixaBank does not have any pension obligations with former or current members of the Board of Directors in

their capacity as such.

9.2. REMUNERATION OF SENIOR MANAGEMENT

The breakdown and details of remuneration received by Senior Management of the Bank are as follows:


_REMUNERATION OF SENIOR MANAGEMENT
(Thousands of euros)
	31-12-2025	31-12-2024	31-12-2023
Salary (1)	15,408	13,335	12,661
Post-employment benefits (2)	1,583	1,484	1,356
Other long-term benefits (3)	106	107	64
Other positions at Group companies	1,550	1,480	1,251
TOTAL	18,647	16,406	15,332
Remuneration received for representing the Bank on Boards of Directors of listed companies and others in which the Company has a presence, outside of the consolidated group (4)	83	55	48
TOTAL REMUNERATION	18,730	16,461	15,380
Number of members of the Senior Management:	15	15	15
(1) This amount includes fixed remuneration, remuneration in kind and total variable remuneration received by members of the Senior Management. Variable remuneration corresponds to the variable remuneration scheme with multi-year metrics accruing in cash and shares for the year, which includes the deferred portion subject to the multi-year adjustment.
(2) Includes insurance premiums and discretionary pension benefits.
(3) This item corresponds to the amount of the risk insurance policy whose increase or decrease does not correspond to remuneration management, but rather to the performance of the technical variables that determine the premiums.
(4) Recognised in the statement of profit or loss of the respective companies.

All the contracts of Senior Management members

and the CEO have post-contractual non-

competition commitments of one annual payment

of their fixed components (payable in 12 monthly

payments) and indemnity clauses equivalent to one

annual payment of the fixed components, or the

amount payable by law, whichever is higher.

The Chief Executive Officer has an indemnity clause

of 1 annual payment of the fixed remuneration

components. There are currently 2 committee

members for whom the indemnity to which they are

legally entitled remain less than 1 year of their salary.

The value of obligations accrued as defined

contribution post-employment commitments with

executive directors and Senior Management are as

follows:


_POST-EMPLOYMENT COMMITMENTS WITH EXECUTIVE DIRECTORS AND SENIOR MANAGEMENT
(Thousands of euros)
	31-12-2025	31-12-2024	31-12-2023
Post-employment commitments (1)	23,477	20,626	17,728
(1) The change in the value of post-employment commitments is a result of both the contributions made throughout the year and the returns from the various policies.

9.3. OTHER DISCLOSURES CONCERNING THE BOARD OF

DIRECTORS

Article 37 of the Regulation of the Board of Directors

of CaixaBank governs the situations of conflict

applicable to all directors, establishing that the

director must avoid situations that could entail a

conflict of interest between the Company and the

Director or its related persons, adopting the

measures necessary in this regard.

Directors must notify the CaixaBank Board of

Directors of any direct or indirect conflicts of interest

that they or persons related to them may have with

the Group's interests, which will be disclosed in the

financial statements, as provided for in Article 229.3

of the Spanish Capital Companies Law.

During 2025, no director reported any situation that

placed them in a conflict of interest with the Bank;

however, on the following occasions, directors

abstained from participating in and voting on the

deliberation of matters at meetings of the Board of

Directors:


_MITIGATING CONFLICTS OF INTEREST
Director	Abstention from deliberation and voting
Tomás Muniesa	– Proposals for the appointment and re-election of independent directors. – Resolutions on their remuneration for financial year 2025. – Motion relating to the signing of an agreement with ”la Caixa” Banking Foundation (Fundación Bancaria Caixa d’Estalvis i Pensions de Barcelona) for the staging of the Cap Roig Festival. – Proposed transaction with Infinitum Resort, S.A. and InmoCriteria Caixa, S.A. (subsidiaries of Criteria Caixa). – Proposals for the provision of investment and ancillary services by CaixaBank and two subsidiaries of the CaixaBank Group to Criteria Caixa.
María Amparo Moraleda	– Resolutions relating to financing arrangements with related parties. – Resolution relating to the engagement of Spencer Stuart for the provision of services.
Gonzalo Gortazar	– Resolutions on their variable remuneration for the 2024 financial year. – Resolutions on their remuneration for financial year 2025. – Resolution relating to a financing arrangement with a related person.
Cristina Garmendia	– Resolutions relating to a financing arrangement with a related person.
José María Méndez	– Motion relating to the signing of an agreement with ”la Caixa” Banking Foundation (Fundación Bancaria Caixa d’Estalvis i Pensions de Barcelona) for the staging of the Cap Roig Festival. – Proposed transaction with Infinitum Resort, S.A. and InmoCriteria Caixa, S.A. (subsidiaries of Criteria Caixa). – Proposals for the provision of investment and ancillary services by CaixaBank and two subsidiaries of the CaixaBank Group to Criteria Caixa.
Teresa Santero	– Proposal for the transaction with Arqura Homes, Fondo de Activos Bancarios (FAB), a company linked to SAREB. – Motion regarding the renewal of guarantees in favour of SAREB.
Koro Usarraga	– Resolutions relating to a financing arrangement with a related person.
José Serna (director until 11/04/2025)	– Proposals for the appointment and re-election of independent directors.

The remaining directors, who held office during 2025,

have declared that during their term of office in 2025

they did not have any situation of conflict with the

interests of the Company, whether direct or indirect,

their own or those of persons related to them.

There is no family relationship between the members

of the Board of Directors and the group of key

personnel comprising the Senior Management team.

PROHIBITION OF COMPETITION

More precisely, Article 229(1)(f) of the LSC establishes

that Board members may not carry out, for their own

account or the account of others, activities that

actually or potentially constitute effective

competition with those carried out by the Bank or

which, in any other way, permanently conflict with

the Company’s interests. Article 230 of the LSC

stipulates that this prohibition can be lifted if the

Company is not expected to incur damages or it is

expected that it will be indemnified for an amount

equal to the benefits expected to be obtained from

the exemption. Express and separate approval of the

exemption must be obtained from shareholders at

the AGM. The provisions contained in the mentioned

articles also apply to cases where the beneficiary of

any such actions or activities is a person related to

the director.

The Bank has not been informed of any activity or

circumstance that might represent effective, current

or potential competition of the directors or persons

associated with them, with the Group or that, in any

other way, places them in permanent conflict with

the interests of the Bank.

VOTING RIGHTS OF “KEY PERSONNEL”

At year-end, the voting rights (direct and indirect) of

“Key personnel – Directors and Senior Management”

are disclosed in the section “03 Corporate

governance – Management and administration of

the Company – The Board of Directors” of the

consolidated Management Report.

10. Cash and cash equivalents

The breakdown of this heading is as follows:


_BREAKDOWN OF CASH AND CASH EQUIVALENTS
(Millions of euros)
	31-12-2025	31-12-2024	31-12-2023
Cash	2,512	2,402	2,418
Cash balances in central banks	42,140	45,955	33,704
Other demand deposits	1,176	1,447	1,739
TOTAL	45,828	49,804	37,861

Cash balances at central banks include balances

held to comply with the mandatory minimum

reserves requirement in the central bank based on

eligible liabilities.

11. Financial assets

The breakdown of the balances of these headings is as follows:


_BREAKDOWN OF FINANCIAL ASSETS
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Banking and other business	Insurance activity	Banking and other business	Insurance activity	Banking and other business	Insurance activity
Financial assets held for trading		5,799		5,688		6,993
	Derivatives (Note 12.1)	4,378		4,867		6,344
	Equity instruments	641		415		303
	Shares in Spanish companies	554		332		237
	Shares in foreign companies	87		83		66
	Debt securities *	780		406		346
	Spanish government debt **	281		196		131
	Foreign government debt *	143		63		22
	Other issuers	356		147		193
Non-marketable financial assets mandatorily measured at fair value through profit or loss ***		71	21,249	88	17,160	124	13,261
	Equity instruments	71	21,247	88	17,160	124	13,261
	Debt securities		2
Financial assets designated at fair value through profit or loss ***			5,698		6,498		7,240
	Debt securities		5,698		6,498		7,240
	Unit link		4,890		5,370		5,818
	Other		808		1,128		1,422
Financial assets at fair value through other comprehensive income ****		10,956	60,226	9,630	59,137	9,378	57,212
	Equity instruments (Note 11.1)	610	1	578	1	1,340
	Shares of listed companies	346		1		714
	Shares in unlisted companies	264	1	577	1	626
	Of which: gross unrealised gains	124		107	1	119
	Of which: gross unrealised losses	(19)		(205)		(1,299)
	Debt securities (Note 11.2) * / **	10,346	60,225	9,052	59,136	8,038	57,212
	Spanish government debt securities	2,562	41,594	2,906	41,593	3,275	41,788
	Foreign government debt securities	7,573	6,473	5,540	6,000	3,720	6,281
	Other issuers	211	12,158	606	11,543	1,043	9,143
	Of which: gross unrealised gains	8	2,080	22	3,055	6	3,399
	Of which: gross unrealised losses	(178)	(3,258)	(274)	(3,131)	(300)	(3,617)
Financial assets at amortised cost		474,241	4,855	441,957	4,833	433,090	4,091
	Debt securities (Note 11.2) * / **	84,451	4,473	75,654	4,387	77,336	3,580
	Public debt	75,555	2,407	66,935	2,441	69,000	2,073
	Of which: Senior debt - SAREB	15,725		16,065		16,755
	Other Spanish issuers	4	174	71	258	131	269
	Other foreign issuers	8,892	1,892	8,648	1,688	8,205	1,238
	Loans and advances (Note 11.3)	389,790	382	366,303	446	355,755	510
	Credit institutions	14,823	21	14,871	79	11,709	173
	Customers	374,967	361	351,432	367	344,046	337
(*) ä See Note 3.4.1, section “Concentration according to sovereign risk”.
(**) See ratings classification in Note 3.4.1, section “Concentration according to credit quality”.
(***) Financial instruments linked to the insurance activity mainly include investments linked to the operation of life insurance products where the investment risk is assumed by the policyholder, both Unit Link and investments linked to the Flexible Immediate Annuity product, under the VFA model (ä see Note 14).
(****) Investments in the insurance business are held for the payment of expected benefits to policyholders and are therefore not expected to materialise in a going concern environment. As a general rule, they would only be sold in the event of surrender, and since most life insurance products are redeemable at the market value of the related financial instruments, there would be no impact on the Group. Furthermore, to minimise accounting asymmetries between the accounting recognition of financial assets and insurance liabilities, the Group has chosen the accounting policy option of recording changes from the measurement of insurance liabilities at current rates in “Other comprehensive income”.

11.1. EQUITY INSTRUMENTS

At year-end, the Group has no financial support agreement or other significant commitment of the equity

instruments recognised in the financial statements. Furthermore, at year-end there are no significant

contingent liabilities relating to these holdings.

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

The breakdown of the changes under this heading is as follows:


_MOVEMENTS IN EQUITY INSTRUMENTS
(Millions of euros)
	2025		2024			2023
	Banco Fomento de Angola (BFA)	Other	Telefónica	Banco Fomento de Angola (BFA)	Other	Telefónica	Banco Fomento de Angola (BFA)	Other
BALANCE AT START OF PERIOD	305	274	714	339	287	684	411	256
Acquisitions and capital increases		9			1
Disposals and capital decreases	(151)	(16)	(2,104)		(17)			(27)
Gains (-) / losses (+) transferred to reserves	48	(19)	1,095		(9)			6
Adjustments to market value and exchange differences	143	18	295	(34)	12	30	(72)	27
Transfers and other								25
CLOSING BALANCE	345	266		305	274	714	339	287

TELEFÓNICA

On 10 June 2024, CaixaBank’s stake in Telefónica, S.A.

was fully derecognised through the settlement of

shares in swap contracts representing a 0.970 %

stake in the company and the sale to the market of

the remaining 1.576 %. This transaction had no impact

on the statement of profit or loss and resulted in an

increase of 5 basis points in the CET1 ratio.

BANCO FOMENTO DE ANGOLA (BFA)

In September 2025, the public offering (IPO) of 30 % of

BFA’s share capital was completed on the Angola

Stock Exchange. BPI sold 14.75 % of BFA’s capital in

exchange for 103 million euros. Following the sale, BPI

retains a stake of 33.35 %. The transaction did not

have a significant impact on equity or capital

adequacy.

As a result of this transaction, BFA shares were

admitted to trading on the Angola Debt and Stock

Exchange .

After analysing various aspects relating to the depth

of the market in which it operates, including, among

others, the level of demand, transaction volumes,

regularity of trading, the recent commencement of

trading on an exchange where only a few

companies are listed, as well as a comparison with

market multiples of other listed banks in Africa, it was

decided to continue valuing the interest using the

dividend discount model (DDM) at the close of 2025,

adjusting certain valuation assumptions, in particular

the illiquidity premium, as described below.

In any event, the Group will continue to monitor the

trend in the share price and will benchmark the

valuation of BFA against other valuation

methodologies.

The main assumptions used in the dividend discount

model are set out below:


_ASSUMPTIONS USED IN THE VALUATION OF BANCO FOMENTO DE ANGOLA (BFA)
(Percentage)
	31-12-2025	31-12-2024	31-12-2023
Forecast periods	5 años	5 años	5 años
Discount rate *	15.2 %	20.9 %	20.6 %
Objective capital ratio	20.0 %	21.0 %	21.0 %
(*) Calculated using the interest rate on United States government bonds plus a country risk premium, a market risk premium and an illiquidity/lack of control coefficient.

In order to determine whether significant variations would arise in the fair value estimate as a result of changes

in one or more of the base parameters of the valuation model, the following sensitivity analysis has been

performed on the fair value estimate of BFA, determined using the DDM:


_FAIR VALUE SENSITIVITY ANALYSIS OF BFA
(Millions of euros)
	Discount rate		Objective capital ratio		Change in the AKZ/USD exchange rate (up to 2029)
	+1 %	-1 %	+1 %	-1 %	-20 %	+20 %
Estimated value for 33.35 % of BFA	324	370	341	349	305	380

INFORMATION ON SIGNIFICANT EQUITY INTERESTS

The relevant financial information of the most relevant equity instruments classified in this section is as follows:


_FINANCIAL INFORMATION ON THE MOST RELEVANT PARTICIPATIONS
(Millions of euros and percentage)
	Registered address	% shareholding	% voting rights	Equity	Latest published profit/(loss)
Sociedad de gestión de Activos Procedentes de la Reestructuración Bancaria (Sareb) (1) (2)	Madrid - Spain	12.24 %	12.24 %	(16,464)	(1,266)
Banco de Fomento Angola (BFA)	Angola	33.35 %	33.35 %	650	116
(1) Non-listed companies. The information on equity and the last published profit/(loss) is at 30-06-2025.
(2) The value of Sareb’s shareholding is fully impaired according to the discounted valuation of estimated shareholder cash flows, as well as based on negative equity.

11.2. DEBT SECURITIES

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

The breakdown of the changes under this heading is as follows:


_CHANGES IN DEBT SECURITIES – BANKING AND OTHER ACTIVITIES
(Millions of euros)
		2025			2024			2023
		Stage 1	Stage 2	Stage 3	Stage 1	Stage 2	Stage 3	Stage 1	Stage 2	Stage 3
BALANCE AT START OF PERIOD		9,052			8,027	11		11,582	9
Plus:
	Acquisitions	4,994			3,710			304
	Changes in interest accrual	63			(71)			69	1
	Gains/(losses) recognised with adjustments to equity (Note 21.2)	83			36	5		199	1
Less:
	Sales	(2,801)			(123)	(5)		(245)
	Redemptions	(761)			(2,690)			(3,818)
	Implicit interest				(6)			6
	Amounts transferred to statement of profit or loss (Note 29)*	(10)			(1)	(11)		7
	Exchange differences and other	(274)			170			(77)
CLOSING BALANCE		10,346			9,052			8,027	11
(*) The result of fixed income portfolio sales is included under “Gains or losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net” (ä see Note 29).


_CHANGES IN DEBT SECURITIES - INSURANCE ACTIVITY
(Millions of euros)
		2025			2024			2023
		Stage 1	Stage 2	Stage 3	Stage 1	Stage 2	Stage 3	Stage 1	Stage 2	Stage 3
BALANCE AT START OF PERIOD		59,136			57,212			51,474	116
Plus:
	Acquisitions	8,892			11,556			12,631
	Changes in interest accrual	(4)			(12)			(273)	(5)
	Gains/(losses) recognised with adjustments to equity (Note 21.2)	(1,070)			161			2,531	(29)
Less:
	Sales	(2,679)			(5,748)			(6,945)
	Redemptions	(3,766)			(3,817)			(2,383)
	Implicit interest	(296)			(226)			241	(11)
	Reclassifications and transfers							71	(71)
	Amounts transferred to statement of profit or loss (Note 29)	12			10			(2)
	Exchange differences and other							(133)
CLOSING BALANCE		60,225			59,136			57,212
(*) The result of fixed income portfolio sales is included under “Gains or losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net” (ä see Note 29).

FINANCIAL ASSETS AT AMORTISED COST

The breakdown of changes in the gross carrying amount of debt securities at amortised cost is as follows:


_CHANGES IN DEBT SECURITIES – BANKING AND OTHER ACTIVITIES
(Millions of euros)
		2025				2024				2023
		Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
BALANCE AT START OF PERIOD		75,616	47	10	75,673	77,287	61	12	77,360	77,688	49	12	77,749
Transfers		(20)		20		5	(5)			(32)	32
	From stage 1:	(20)		20		(6)	6			(39)	39
	From stage 2:					11	(11)			7	(7)
Acquisitions		27,698	24	11	27,733	26,652	186	101	26,939	21,385	227	54	21,666
Sales (1)		(1,852)			(1,852)	(1,903)			(1,903)	(69)			(69)
Redemptions		(17,559)	(16)	(11)	(17,586)	(26,178)	(198)	(102)	(26,478)	(21,546)	(242)	(54)	(21,842)
Changes in interest accrual		559			559	(237)			(237)	(93)	(1)		(94)
Write-offs								(1)	(1)
Exchange differences and other		(54)			(54)	(10)	3		(7)	(46)	(4)		(50)
CLOSING BALANCE		84,386	55	30	84,471	75,616	47	10	75,673	77,287	61	12	77,360
Impairment allowances (2)		(7)	(1)	(12)	(20)	(7)	(2)	(10)	(19)	(6)	(7)	(11)	(24)
(1) Gains on portfolio sales are recorded under “Gains or losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net” (ä see Note 29), with no impact on the business model.
(2) There were no significant changes in the period


_MOVEMENTS IN DEBT SECURITIES - INSURANCE ACTIVITY
(Millions of euros)
	2025				2024				2023
	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
BALANCE AT START OF PERIOD	4,387			4,387	3,580			3,580	3,204			3,204
Acquisitions	712			712	1,019			1,019	1,265			1,265
Sales (1)	(3)			(3)	(38)			(38)	(614)			(614)
Redemptions	(626)			(626)	(198)			(198)	(280)			(280)
Changes in interest accrual	3			3	24			24	5			5
CLOSING BALANCE	4,473			4,473	4,387			4,387	3,580			3,580
Impairment allowances (2)
(1) The profit/(loss) of fixed-income portfolio sales is recorded under the heading “Gains/(losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net” (ä see Note 29), without any impact on the business model.
(2) There were no significant changes in the period

11.3. LOANS AND ADVANCES

FINANCIAL ASSETS MEASURED AT AMORTISED COST

CREDIT INSTITUTIONS

The breakdown of this heading is as follows:


_BREAKDOWN OF LOANS AND ADVANCES TO CREDIT INSTITUTIONS BY TYPE
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Banking and other business	Insurance activity	Banking and other business	Insurance activity	Banking and other business	Insurance activity
On demand		4,072		5,476	10	5,653	64
Term		10,604	21	9,211	69	5,945	109
	Term deposits - stage 1 and 2	10,600	21	9,207	69	5,936	109
	Term deposits in stage 3	4		4		9
Value adjustments		147		184		111
	Impairment allowances	(6)		(8)		(11)
	Other	153		192		122
TOTAL		14,823	21	14,871	79	11,709	173

LOANS AND ADVANCES TO CUSTOMERS

The breakdown by impairment status of the loans and advances to customers is as follows:


_BREAKDOWN OF LOANS AND ADVANCES TO CUSTOMERS
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Gross amount	Provisions for impairment	Gross amount	Provisions for impairment	Gross amount	Provisions for impairment
Stage 1		348,618	(678)	325,438	(693)	312,863	(664)
Stage 2		24,902	(861)	23,340	(938)	28,797	(1,165)
Stage 3		7,993	(4,659)	9,500	(4,869)	9,762	(5,256)
POCI *		133	(120)	199	(178)	280	(234)
	Not impaired	6		6		7
	Impaired	127	(120)	193	(178)	273	(234)
TOTAL		381,646	(6,318)	358,477	(6,678)	351,702	(7,319)
(*) POCIs arising from the business combination with Bankia (initially 770 million euros).

Details of the movement in the gross carrying amount of loans and advances to customers are as follows:


_CHANGES IN LOANS AND ADVANCES TO CUSTOMERS
(Millions of euros)
		2025				2024				2023
		Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
BALANCE AT START OF PERIOD		325,438	23,340	9,500	358,278	312,863	28,797	9,762	351,422	321,576	28,562	9,621	359,759
Transfers		(5,496)	4,502	994		(1,735)	(949)	2,684		(5,984)	3,575	2,409
	From Stage 1:	(11,241)	10,483	758		(12,491)	11,325	1,166		(16,547)	15,239	1,308
	From Stage 2:	5,669	(6,772)	1,103		10,684	(12,939)	2,255		10,513	(12,721)	2,208
	From Stage 3:	76	791	(867)		72	665	(737)		50	1,057	(1,107)
Additions		99,672	2,661	666	102,999	78,242	2,046	617	80,905	69,176	2,858	652	72,686
Disposals *		(70,996)	(5,601)	(1,488)	(78,085)	(63,932)	(6,554)	(1,364)	(71,850)	(71,905)	(6,198)	(1,096)	(79,199)
Write-offs				(1,679)	(1,679)			(2,199)	(2,199)			(1,824)	(1,824)
CLOSING BALANCE		348,618	24,902	7,993	381,513	325,438	23,340	9,500	358,278	312,863	28,797	9,762	351,422
(*) In addition to depreciation and amortisation, this item includes the transfer to the heading “Non-current assets and disposal groups classified as held for sale” of contracts included in portfolio sales pending completion.

Changes in the hedging of loans and advances to customers is as follows:


_MOVEMENTS IN THE ALLOWANCE FOR IMPAIRMENT OF LOANS AND ADVANCES TO CUSTOMERS
(Millions of euros)
		2025				2024				2023
		Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
BALANCE AT START OF PERIOD		693	938	4,869	6,500	664	1,165	5,256	7,085	1,344	1,368	4,459	7,171
Net charges (Note 34)		(15)	(77)	964	872	29	(227)	1,118	920	(687)	(202)	1,867	978
	From Stage 1:	(260)	66	247	53	(150)	119	366	335	(81)	176	389	484
	From Stage 2:	(23)	(185)	159	(49)	6	(225)	517	298	(9)	(180)	464	275
	From Stage 3:	(10)	(32)	399	357	(13)	(226)	720	481	(8)	(46)	878	824
Additions		288	147	377	812	228	126	289	643	192	94	255	541
Disposals **		(10)	(73)	(218)	(301)	(42)	(21)	(774)	(837)	(781)	(246)	(119)	(1,146)
Amounts used				(1,037)	(1,037)			(1,291)	(1,291)			(1,112)	(1,112)
Transfers and other *				(137)	(137)			(214)	(214)	7	(1)	42	48
CLOSING BALANCE		678	861	4,659	6,198	693	938	4,869	6,500	664	1,165	5,256	7,085
(*) In 2024, it includes the transfer of 255 million euros to cover the expected loss associated with future changes in cash flows other than credit risk to “Provisions” (ä see Note 20).
(**) Includes the transfer to the heading “Non-current assets and disposal groups of items that have been classified as held for sale” of the contracts included in pending portfolio sales.

12. Derivatives

12.1. TRADING DERIVATIVES

The Group individually hedges the market risk associated with derivatives arranged with customers by

arranging symmetrical derivatives in the market and records both in the trading book.

The breakdown of this heading is as follows:


_BREAKDOWN OF TRADING DERIVATIVES (PRODUCT AND COUNTERPARTY)
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Assets	Liabilities	Assets	Liabilities	Assets	Liabilities
Unmatured foreign currency purchases and sales		722	666	981	1,006	736	704
	Purchases of foreign currencies against euros	143	489	771	118	192	412
	Purchases of foreign currencies against foreign currencies	100	111	192	176	198	194
	Sales of foreign currencies against euros	479	66	18	712	346	98
Purchase and sale of financial assets							2
	Sales						2
Share options		72	71	85	94	492	455
	Bought	72		85		492
	Issued		71		94		455
Interest rate options		117	54	125	72	241	149
	Bought	117		125		241	1
	Issued		54		72		148
Foreign currency options		140	113	102	154	84	56
	Bought	140		102		84
	Issued		113		154		56
Other share, interest rate and inflation transactions		3,118	1,818	3,313	1,846	4,532	655
	Share swaps	14	356	17	148	11	83
	Future rate agreements (FRAs)	75	75	175	175	126	129
	Interest-rate and inflation-linked swaps	3,029	1,387	3,121	1,523	4,395	443
Commodity derivatives and other risks		209	104	261	248	259	168
	Swaps	207	102	251	237	253	159
	Purchased options	2		190		6
	Sold options		2		11		9
TOTAL		4,378	2,826	4,867	3,420	6,344	2,189

Of which: arranged in organised markets		13	7	23	19	52	58
Of which: arranged in non-organised markets		4,365	2,819	4,844	3,401	6,292	2,131
NOTIONAL		1,247,972		1,009,884		831,999

12.2. HEDGE ACCOUNTING

The Group has recognised hedging derivatives to

hedge interest rate, foreign exchange, inflation and

market risks in respect of the following balance sheet

positions:

| Fair value hedges: They mainly cover:

| Interest rate risk (transformation from fixed

to floating rate): in loans, the fixed-income

portfolio, temporary asset transfers, issued

debt securities, current accounts and time

deposits.

| Exchange rate risk: in fixed-rate foreign

currency loans converted into variable-rate

euro loans.

| Inflation risk: Of the fixed income portfolio.

| Financial assets under insurance

commitments: To cover the change in the

interest rate of the net position of insurance

activity.

| Cash flow hedges: They mainly cover:

| Interest rate risk: in mortgage loans pegged

to Euribor, the fixed-income portfolio and

time deposits.

| Exchange rate risk: in fixed-rate foreign

currency loans converted into fixed-rate

euro loans.

| Inflation risk: fixed-income portfolio classified

as amortised cost.

All hedging derivatives are OTC and are arranged

with financial institutions and central counterparties.

The maturity schedule of the interest rate hedged

items and their average interest rate is set out below:


_MATURITY SCHEDULE OF HEDGED ITEMS AND AVERAGE INTEREST RATE – 2025
(Millions of euros)
	Hedged item value						Average interest rate
	<1 Month	1 – 3 months	3 – 12 months	1 – 5 years	> 5 years	Total	Average interest rate
Asset interest-rate hedges	47	73	1,617	8,634	19,717	30,088	1.950%
Liability interest-rate hedges	163	2,349	6,074	89,027	19,279	116,892	(0.690)%
TOTAL FAIR VALUE HEDGES	210	2,422	7,691	97,661	38,996	146,980
Asset interest-rate hedges	3,536	1,246	24,806	64,152	6,999	100,739	(1.086)%
TOTAL CASH FLOW HEDGES	3,536	1,246	24,806	64,152	6,999	100,739

Set out below is a breakdown of fair value hedges and cash flow hedges:


_FAIR VALUE HEDGES – HEDGING ITEMS
(Millions of euros)
Hedged item		Risk covered	Hedging instrument	31-12-2025		2025	31-12-2024		31-12-2023
				Value of hedging instrument		Change in fair value of hedge ineffectiveness (Note 29)	Value of hedging instrument		Value of hedging instrument
				Assets	Liabilities	Change in fair value of hedge ineffectiveness (Note 29)	Assets	Liabilities	Assets	Liabilities
MACRO-HEDGES
	Financial assets at amortised cost	Interest rate risk	Interest-rate swaps and options	2	11	44	4	11	5	15
	Financial liabilities at amortised cost	Interest rate risk	Interest-rate swaps and options	90	7	(32)	206	7	203	13
BANKING BUSINESS AND OTHER				92	18	12	210	18	208	28
	Financial assets at fair value through OCI	Interest rate risk	Interest-rate swaps and options		37	43		57
INSURANCE ACTIVITY					37	43		57

MICRO-HEDGES
	Financial assets at fair value through OCI	Interest rate risk	Interest-rate swaps			(1)
		Inflation risk	Inflation-linked swaps and options		112	(12)		104		98
		Market risk	Equity swaps			(1)			51
	Financial assets at amortised cost	Foreign currency risk	Currency swaps		2			1		2
	Financial assets at amortised cost	Inflation risk	Inflation-linked swaps		8	(1)		7		6
BANKING BUSINESS AND OTHER					122	(15)		112	51	106
	Financial assets at fair value through OCI	Interest rate risk	Interest-rate swaps	81	26	16	109	27	186	991
		Inflation risk	Inflation-linked swaps and options		193	55		228
		Foreign currency risk	Currency swaps	8		48		9
	Financial assets at FV and Liabilities under insurance contracts *	Interest rate risk	Interest-rate swaps	147	2,207		56	2,549	494	5,408
INSURANCE ACTIVITY				236	2,426	119	165	2,813	680	6,399
(*) Corresponds to the position in derivatives contracted by VidaCaixa in order to neutralise the impact on economic value caused by changes in interest rates on the net position of the bond portfolio and liabilities associated with commitments with policyholders. This means that VidaCaixa ensures that the market value of the investments assigned to insurance transactions is equal to or higher than the present value of the flows corresponding to the obligations arising from the contracts and that the sensitivity to changes in interest rates of the present values of assets and liabilities is equivalent.


FAIR VALUE HEDGES - HEDGED ITEMS
(Millions of euros)
Hedged item		Risk covered	31-12-2025				2025		31-12-2024		31-12-2023
			Hedged instrument		Accumulated FV adjustments on the hedged item		Accumulated amount of FV hedging adjustments	Change in value used to calculate ineffectiveness (Note 29)	Hedged instrument		Hedged instrument
			Assets	Liabilities	Assets	Liabilities	Accumulated amount of FV hedging adjustments	Change in value used to calculate ineffectiveness (Note 29)	Assets	Liabilities	Assets	Liabilities
MACRO-HEDGES
	Financial assets at amortised cost	Interest rate risk	12757		(928)		759	(42)	15,010		11,903
	Financial liabilities at amortised cost	Interest rate risk		116,892		(1,242)	7	38		103,265		82,030
BANKING BUSINESS AND OTHER			12,757	116,892	(928)	(1,242)	766	(4)	15,010	103,265	11,903	82,030
	Financial assets at fair value through OCI	Interest rate risk	3,133					(43)	3,116
INSURANCE ACTIVITY			3,133					(43)	3,116

MICRO-HEDGES
	Financial assets at fair value through OCI	Interest rate risk	60					1	60		60
		Inflation risk	505					8	508		497
		Market risk	3				6				433
	Financial assets at amortised cost	Foreign currency risk	76		1				94		104
	Financial assets at amortised cost	Inflation risk	38		(2)			1	40		40
BANKING BUSINESS AND OTHER			682		(1)		6	10	702		1,134
	Financial assets at fair value through OCI	Interest rate risk	7,775					15	2,210		8,709
		Inflation risk	913					(55)
		Foreign currency risk	162					(48)	196
	Financial assets at FV and Liabilities under insurance contracts	Interest rate risk	4,669						4,953		4,914
INSURANCE ACTIVITY			13,519					(88)	7,359		13,623


_CASH FLOW HEDGES
(Millions of euros)
	Hedged item	Risk covered	Hedging instrument	31-12-2025			2025		31-12-2024			31-12-2023
				Value of hedging instrument		Cash flow hedging reserve	Amount reclassified from equity to profit or loss	Ineffective- ness taken to profit/(loss)	Value of hedging instrument		Cash flow hedging reserve	Value of hedging instrument		Cash flow hedging reserve
				Assets	Liabilities	Cash flow hedging reserve	Amount reclassified from equity to profit or loss	Ineffective- ness taken to profit/(loss)	Assets	Liabilities	Cash flow hedging reserve	Assets	Liabilities	Cash flow hedging reserve
MACRO-HEDGES
	Financial assets at amortised cost	Interest rate risk	Interest-rate swaps	10	43	(328)	(38)		7		(218)			(382)
	Financial assets at amortised cost	Interest rate and foreign exchange risk	Currency swaps	846	22	(28)			40	497	(41)	213	67	(30)
	Financial liabilities at amortised cost	Interest rate risk	Interest-rate swaps				1
BANKING BUSINESS AND OTHER				856	65	(356)	(37)		47	497	(259)	213	67	(412)
MICRO-HEDGES
	Financial assets at fair value through OCI	Interest rate and inflation risk	Inflation-linked swaps and inflation- linked options		15	(3)				15	(4)
	Financial assets at amortised cost	Interest rate and inflation risk	Inflation-linked swaps and inflation- linked options		755	42				739	30		1,077
	Financial assets at amortised cost	Interest rate and foreign exchange risk	Currency swaps	177		(13)			102		(27)	54
BANKING BUSINESS AND OTHER				177	770	26			102	754	(1)	54	1,077
	Financial assets at fair value through OCI	Interest rate and inflation risk	Inflation-linked swaps and inflation- linked options	6	362	(62)			6	378	(115)
		Interest rate and foreign exchange risk	Currency swaps	9	47	18			1	80	(12)
		Interest rate risk	Interest-rate swaps	1	152	12
INSURANCE ACTIVITY				16	561	(32)			7	458	(127)
(*) At 31 December 2025, 2024 and 2023, the outstanding amount recognised in cash flow hedge reserves for hedging relationships to which hedge accounting no longer applies amounted to 19, 20 and 22 million euros, respectively.

13. Investments in joint ventures

and associates

The breakdown of the changes of the balance under this heading is as follows:


	ASSOCIATES								JOINT VENTURES
	Underlying carrying amount			Goodwill		Impairment allowances		TOTAL	TOTAL
	Coral Homes	SegurCaixa Adeslas	Other	SegurCaixa Adeslas	Other	Coral Homes	Other	TOTAL	TOTAL
31-12-2022	495	622	575	300	75	(15)	(42)	2,010	44
% shareholding	20.00 %	49.92 %
Acquisitions and capital increases			15		18			33	2
Disposals and capital decreases			(9)					(9)
Measurement using the equity method	(40)	55	17					37
Transfers and other *	(89)	32	(42)		(13)	(45)	3	(154)	(40)
31-12-2023	366	709	556	300	80	(60)	(39)	1,912	4
% shareholding	20.00 %	49.92 %
Acquisitions and capital increases									1
Disposals and capital decreases			(11)					(11)
Measurement using the equity method	(22)	50	49					77	(1)
Transfers and other *	(68)	32	(52)				(20)	(108)
31-12-2024	276	791	542	300	80	(60)	(59)	1,870	4
% shareholding	20.00 %	49.92 %
Acquisitions and capital increases			3					3	1
Disposals and capital decreases			(1)					(1)
Measurement using the equity method	(18)	27	(13)					(4)	(1)
Transfers and other *	(89)	32	(10)			(20)	(36)	(123)
31-12-2025	169	850	521	300	80	(80)	(95)	1,745	4
% shareholding	20.00 %	49.92 %
(*) Transfers and other mainly includes the distribution of reserves and dividends deducted from cost of investment. The impairment allowance includes impairments made during the year, which are recognised under “Impairment or reversal of impairment of investments in joint ventures or associates” in the statement of profit or loss.

At year end, the Group has no financial support agreements or other significant commitments to the Group's

associates and joint ventures that are not recognised in the financial statements. Furthermore, at year-end

there are no significant contingent liabilities related to these shareholdings.

IMPAIRMENT OF THE PORTFOLIO OF

INVESTMENTS

For the purpose of assessing the recoverable

amount of investments in associates and joint

ventures, the Group regularly monitors the

impairment indicators related to its investees.

Particularly, the following items are considered,

among others: (i) business performance; (ii) share

prices throughout the period; and (iii) the target

prices published by renowned independent analysts.

A summary of the ranges of assumptions used and

the ranges of contrasting sensitivity are provided

below:


_ASSUMPTIONS USED AND SENSITIVITY SCENARIOS
(Percentage)
	SegurCaixa Adeslas (2)			Coral Homes (3)
	31-12-2025	31-12-2024	31-12-2023	31-12-2025	31-12-2024	31-12-2023
Forecast periods	5 years	5 years	5 years	3 years	3 years	4 years
Discount rate (after tax)	8.25 %	9.70 %	10.30 %	5.72 %	6.98 %	8.09 %
Growth rate (1)	1 %	1 %	2 %
Target capital/solvency ratio	120 %	100 %	100 %
(1) This corresponds to the normalised cash flow growth rate used to calculate the residual value.
(2) The exercise to determine the fair value considers the sensitivity with respect to the discount rate of [-0.5 %; +0.5 %] and the growth rate of [-0.5 %; +0.5 %].
(3) The individual valuation of the real estate assets of Coral Homes, carried out by an independent third-party expert on 31 December 2024, has revealed the existence of significant latent capital gains.

14. Reinsurance contract assets

and insurance contract

liabilities

The breakdown of the balances of these headings is as follows:


_DETAILS OF REINSURANCE CONTRACTS ASSETS AND INSURANCE CONTRACT LIABILITIES - 31-12-2025
(Millions of euros)
		Risk		Savings	Direct participation	Total			Total
		BBA	PAA	BBA	VFA	BBA	VFA	PAA	Total
Insurance contract liabilities *		543	468	56,174	22,707	56,717	22,707	468	79,892
Liability for remaining coverage (LRC)		294	38	55,263	22,519	55,557	22,519	38	78,114
	Best estimate of liabilities (PVCF)	(170)	38	52,162	21,223	51,992	21,223	38	73,253
	Risk adjustment (RA)	23		611	427	634	427		1,061
	Contractual Service Margin (CSM)	441		2,490	869	2,931	869		3,800
Liabilities for incurred claims (LIC)		249	430	911	188	1,160	188	430	1,778
Note: “Reinsurance of reinsurance contracts assets” are valued under the simplified PAA model. The balance at year-end is not significant.
(*) Not including liabilities classified and measured under the scope of IFRS 9, linked to certain BPI Vida e Pensões products that do not incorporate a significant transfer of insurance risks. These contracts are classified under “Financial liabilities at amortised cost – Deposits – Customers” and “Financial liabilities at fair value through profit or loss – Deposits – Customers”, amounting to 874 million euros and 4,269 million euros, respectively.


_DETAILS OF REINSURANCE CONTRACTS ASSETS AND INSURANCE CONTRACT LIABILITIES – 31-12-2024
(Millions of euros)
		Risk		Savings	Direct interest	Total			Total
		BBA	PAA	BBA	VFA	BBA	VFA	PAA	Total
Insurance contract liabilities *		548	409	54,848	19,800	55,396	19,800	409	75,605
Liability for remaining coverage (LRC)		335	40	54,002	19,634	54,337	19,634	40	74,011
	Best estimate of liabilities (PVCF)	(68)	40	50,959	18,566	50,891	18,566	40	69,497
	Risk adjustment (RA)	18		555	318	573	318		891
	Contractual Service Margin (CSM)	385		2,488	750	2,873	750		3,623
Liabilities for incurred claims (LIC)		213	369	846	166	1,059	166	369	1,594
Note: "Reinsurance of reinsurance contracts assets” are valued under the simplified PAA model. The balance at year-end is not significant.
(*) Not including liabilities classified and measured under the scope of IFRS 9, linked to certain BPI Vida e Pensões products that do not incorporate a significant transfer of insurance risks. These contracts are classified under “Financial liabilities at amortised cost – Deposits – Customers” and “Financial liabilities recognised at fair value through profit or loss – Deposits – Customers” amounting to 753 million euros and 3,594 million euros, respectively.


_DETAILS OF REINSURANCE CONTRACTS ASSETS AND INSURANCE CONTRACT LIABILITIES - 31-12-2023
(Millions of euros)
		Risk		Savings	Direct interest	Total			Total
		BBA	PAA	BBA	VFA	BBA	VFA	PAA	Total
Insurance contract liabilities *		568	410	52,585	16,677	53,153	16,677	410	70,240
Liability for remaining coverage (LRC)		395	42	51,698	16,524	52,093	16,524	42	68,659
	Best estimate of liabilities (PVCF)	17	42	49,088	15,547	49,105	15,547	42	64,694
	Risk adjustment (RA)	41		298	170	339	170		509
	Contractual Service Margin (CSM)	337		2,312	807	2,649	807		3,456
Liabilities for incurred claims (LIC)		173	368	887	153	1,060	153	368	1,581
Note: “Reinsurance of reinsurance contracts assets” are valued under the simplified PAA model. The balance at year-end is not significant.
(*) Not including liabilities classified and measured under the scope of IFRS 9, linked to certain BPI Vida e Pensões products that do not incorporate a significant transfer of insurance risks. These contracts are classified under “Financial liabilities at amortised cost – Deposits – Customers” and “Financial liabilities at fair value through profit or loss – Deposits – Customers”, amounting to 739 million euros and 3,281 million euros, respectively.

The following is a breakdown of the reconciliation of the liability for remaining coverage and the liability for

claims incurred:


_RECONCILIATION OF THE LIABILITY FOR REMAINING COVERAGE AND LIABILITY FOR INCURRED CLAIMS – 2025
(Millions of euros)
		LIC (NOT PAA)	LIC (PAA)	LRC (BBA, VFA, PAA)		Total
		BBA, VFA	PVCF	Excluding loss component	Loss component (LC)	Total
OPENING BALANCE		1,225	369	73,949	62	75,605
Insurance service income (Note 31)				(3,262)		(3,262)
Amounts related to changes in the liability for the remaining hedging contracts measured under BBA or VFA				(2,091)		(2,091)
	Expected claims and other attributable expected insurance expenses			(1,340)		(1,340)
	Changes in risk adjustment for non-financial risk			(128)		(128)
	CSM recognised in the statement of profit or loss for services rendered			(623)		(623)
Amounts relating to the changes in the liability for remaining coverage - contracts measured under PAA				(1,171)		(1,171)
Insurance service expenses (Note 31)		1,283	659			1,942
Incurred claims and other directly attributable expenses		1,160	600			1,760
Changes related to past service - Adjustments to liability for claims incurred		123	59			182
INSURANCE SERVICE RESULT		1,283	659	(3,262)		(1,320)
Insurance financial expenses (Note 26)				3,585	1	3,586
Insurance financial expenses recognised in Other Comprehensive Income				(650)		(650)
INSURANCE FINANCIAL EXPENSES				2,935	1	2,936
TOTAL AMOUNTS RECOGNISED IN COMPREHENSIVE INCOME		1,283	659	(327)	1	1,616
Investment component		6,896		(6,896)
Other changes				407		407
OTHER CHANGES		6,896		(6,489)		407
Premiums received				10,918		10,918
Benefits and other directly attributable expenses paid		(8,056)	(598)			(8,654)
CHANGES IN CASH FLOWS		(8,056)	(598)	10,918		2,264
CLOSING BALANCE		1,348	430	78,051	63	79,892


_RECONCILIATION OF LIABILITY FOR REMAINING COVERAGE AND LIABILITY FOR INCURRED CLAIMS - 2024
(Millions of euros)
		LIC (NOT PAA)	LIC (PAA)	LRC (BBA, VFA, PAA)		Total
		BBA, VFA	PVCF	Excluding loss component	Loss component (LC)	Total
OPENING BALANCE		1,213	368	68,535	124	70,240
Insurance service income (Note 31)				(3,053)		(3,053)
Amounts related to changes in the liability for the remaining hedging contracts measured under BBA or VFA				(2,020)		(2,020)
	Expected claims and other attributable expected insurance expenses			(1,305)		(1,305)
	Changes in risk adjustment for non-financial risk			(102)		(102)
	CSM recognised in the statement of profit or loss for services rendered			(613)		(613)
Amounts relating to the changes in the liability for remaining coverage - contracts measured under PAA				(1,033)		(1,033)
Insurance service expenses (Note 31)		1,262	551			1,813
Incurred claims and other directly attributable expenses		1,249	544			1,793
Changes related to past service - Adjustments to liability for claims incurred		13	7			20
INSURANCE SERVICE RESULT		1,262	551	(3,053)		(1,240)
Insurance financial expenses (Note 26)				4,178	(62)	4,116
Insurance financial expenses recognised in Other Comprehensive Income				216		216
INSURANCE FINANCIAL EXPENSES				4,394	(62)	4,332
TOTAL AMOUNTS RECOGNISED IN COMPREHENSIVE INCOME		1,262	551	1,341	(62)	3,092
Investment component		6,964		(6,964)
Other changes *		4	(4)	381		381
OTHER CHANGES		6,968	(4)	(6,583)		381
Premiums received				10,649		10,649
Claims and other directly attributable expenses paid		(8,213)	(543)			(8,756)
CHANGES IN CASH FLOWS		(8,213)	(543)	10,649		1,893
Transfer to non-current available-for-sale financial liabilities		(5)	(3)	7
CLOSING BALANCE		1,225	369	73,949	62	75,605
(*) The item “Other changes” mainly includes the following items as at 31 December 2024: \| Improved Risk Adjustment calculation methodology (see details in Note 2.19). \| Improvements in the calculation of liabilities associated with the acquired portfolios of Bankia Mapfre Vida and SA Nostra Vida. \| Modifications made to the valuation method of the short-term savings portfolios (BBA Modified) to better adapt to the economic substance of the product.


_RECONCILIATION OF LIABILITY FOR REMAINING COVERAGE AND LIABILITY FOR INCURRED CLAIMS – 2023
(Millions of euros)
		LIC (NOT PAA)	LIC (PAA)	LRC (BBA, VFA, PAA)		Total
		BBA, VFA	PVCF	Excluding loss component	Loss component (LC)	Total
OPENING BALANCE		1,258	350	60,811	176	62,595
Insurance service income (Note 31)				(3,164)		(3,164)
Amounts related to changes in the liability for the remaining hedging contracts measured under BBA or VFA				(2,209)		(2,209)
	Expected claims and other attributable expected insurance expenses			(1,600)		(1,600)
	Changes in risk adjustment for non-financial risk			(92)		(92)
	CSM recognised in the statement of profit or loss for services rendered			(517)		(517)
Amounts relating to the changes in the liability for remaining coverage - contracts measured under PAA				(955)		(955)
Insurance service expenses (Note 31)		1,566	513		(59)	2,020
Incurred claims and other directly attributable expenses		1,611	495			2,106
Changes related to past service - Adjustments to liability for claims incurred		(45)	18			(27)
Changes related to future services - losses and loss reversals on onerous contracts					(59)	(59)
INSURANCE SERVICE RESULT		1,566	513	(3,164)	(59)	(1,144)
Insurance financial expenses (Note 26)				3,543	7	3,550
Insurance financial expenses recognised in Other Comprehensive Income				2,135		2,135
INSURANCE FINANCIAL EXPENSES				5,678	7	5,685
TOTAL AMOUNTS RECOGNISED IN COMPREHENSIVE INCOME		1,566	513	2,514	(52)	4,541
Investment component		6,514		(6,514)
Other changes				327		327
OTHER CHANGES		6,514		(6,187)		327
Premiums received				11,611		11,611
Claims and other directly attributable expenses paid		(8,125)	(495)			(8,620)
CHANGES IN CASH FLOWS		(8,125)	(495)	11,611		2,991
Transfer to non-current available-for-sale financial liabilities				(149)
Changes due to business combinations				(65)		(65)
CLOSING BALANCE		1,213	368	68,535	124	70,240

The following is a breakdown of movements by component of insurance liabilities (excluding obligations

measured under the PAA method):


_RECONCILIATION OF INSURANCE LIABILITIES COMPONENTS (EXCLUDING PAA)
(Millions of euros)
		2025				2024				2023
		PVCF	RA	CSM	Total	PVCF	RA	CSM	Total	PVCF	RA	CSM	Total
OPENING BALANCE		70,682	891	3,623	75,196	65,865	509	3,456	69,830	58,552	477	3,155	62,184
Changes that relate to future service		(957)	253	704		(932)	137	795		(891)	95	737	(59)
	Changes in estimates that adjust the CSM	(256)	136	120		(329)	56	273		(151)	20	131
	Losses on onerous contracts and reversals	(5)			(5)	(12)	1		(11)	(71)			(71)
	Contracts recognised in the period	(696)	117	584	5	(591)	80	522	11	(669)	75	606	12
Changes that relate to current service		(180)	(128)	(623)	(931)	(55)	(102)	(613)	(770)	11	(92)	(517)	(598)
	CSM recognised for services provided			(623)	(623)			(613)	(613)			(517)	(517)
	Changes in the RA relating to the current service		(128)		(128)		(102)		(102)		(92)		(92)
	Experience adjustments arising from claims incurred and other directly attributable expenses	(180)			(180)	(55)			(55)	11			11
Changes relating to past service		123			123	13			13	(45)			(45)
	Changes that relate to past service – adjustment to the LIC	123			123	13			13	(45)			(45)
INSURANCE SERVICE RESULT		(1,014)	125	81	(808)	(974)	35	182	(757)	(925)	3	220	(702)
Financial expenses relating to insurance contracts (statement of profit or loss)		3,485	17	84	3,586	4,013	18	85	4,116	3,463	16	71	3,550
Insurance financial expenses recognised in OCI		(677)	27		(650)	173	43		216	2,124	11		2,135
INSURANCE FINANCIAL EXPENSES		2,808	44	84	2,936	4,186	61	85	4,332	5,587	27	71	5,685
TOTAL AMOUNTS RECOGNISED IN COMPREHENSIVE INCOME		1,794	169	165	2,128	3,212	96	267	3,575	4,662	30	291	4,983
Other changes		394	1	12	407	200	286	(100)	386	323	2	10	335
OTHER CHANGES		394	1	12	407	200	286	(100)	386	323	2	10	335
Premiums received		9,749			9,749	9,616			9,616	10,667			10,667
Claims and other directly attributable expenses paid		(8,056)			(8,056)	(8,213)			(8,213)	(8,125)			(8,125)
CHANGES IN CASH FLOWS		1,693			1,693	1,403			1,403	2,542			2,542
TRANSFER TO NON-CURRENT AVAILABLE-FOR-SALE FINANCIAL LIABILITIES						2			2	(149)			(149)
Additions due to business combinations										(65)			(65)
CLOSING BALANCE		74,563	1,061	3,800	79,424	70,682	891	3,623	75,196	65,865	509	3,456	69,830

The reconciliation by component and risk group of the direct insurance contracts initially recognised in the

periods indicated for contracts measured under BBA and VFA is shown below:


_RECONCILIATION OF INITIAL RECOGNITION OF CONTRACTS – 2025
(Millions of euros)
		Non-onerous contracts			Onerous contracts			Total
		Risk	Savings	Direct participation	Risk	Savings	Direct participation	Total
Estimation of present value of cash outflows (PVCF outflows)		307	5,977	2,632	24	168	17	9,125
	Claims and other directly attributable expenses	307	5,977	2,632	24	168	17	9,125
Estimation of present value of cash inflows (PVCF inflows)		(574)	(6,286)	(2,755)	(24)	(165)	(17)	(9,821)
Risk adjustment for non-financial risk (RA)		17	71	27		2		117
CSM		250	238	96				584
INCREASE IN INSURANCE CONTRACT LIABILITIES FOR CONTRACTS RECOGNISED DURING THE PERIOD						5		5


_RECONCILIATION OF INITIAL RECOGNITION OF CONTRACTS - 2024
(Millions of euros)
		Non-onerous contracts			Onerous contracts			Total
		Risk	Savings	Direct participation	Risk	Savings	Direct participation	Total
Estimation of present value of cash outflows (PVCF outflows)		(146)	5,523	1,351	1	83	16	6,828
	Claims and other directly attributable expenses	(146)	5,523	1,351	1	83	16	6,828
Estimation of present value of cash inflows (PVCF inflows)		(32)	(5,835)	(1,460)	(1)	(75)	(16)	(7,419)
Risk adjustment for non-financial risk (RA)		27	30	20	2	1		80
CSM		151	282	89				522
INCREASE IN INSURANCE CONTRACT LIABILITIES FOR CONTRACTS RECOGNISED DURING THE PERIOD					2	9		11


_RECONCILIATION OF INITIAL RECOGNITION OF CONTRACTS – 2023
(Millions of euros)
		Non-onerous contracts			Onerous contracts			Total
		Risk	Savings	Direct participation	Risk	Savings	Direct participation	Total
Estimation of present value of cash outflows (PVCF outflows)		(90)	6,930	950	(2)	72		7,860
	Claims and other directly attributable expenses	(90)	6,930	950	(2)	72		7,860
Estimation of present value of cash inflows (PVCF inflows)		(51)	(7,376)	(1,040)	(1)	(61)		(8,529)
Risk adjustment for non-financial risk (RA)		26	26	19	4			75
CSM		115	420	71				606
INCREASE IN INSURANCE CONTRACT LIABILITIES FOR CONTRACTS RECOGNISED DURING THE PERIOD					1	11		12

The following is a breakdown of the maturity of the CSM by risk group:


_MATURITY OF THE CSM BY RISK GROUP
(Millions of euros)
	2025				2024				2023
	Risk	Savings	Direct partici- pation	Total	Risk	Savings	Direct partici- pation	Total	Risk	Savings	Direct partici- pation	Total
CSM amortisation
From 0 to 5 years	395	982	293	1,670	329	1,036	291	1,656	284	936	310	1,530
From 5 to 10 years	24	589	209	822	31	579	199	809	31	597	203	831
From 10 to 15 years	8	352	158	518	10	326	137	473	3	345	137	485
From 15 to 20 years	4	242	117	363	5	228	88	321	1	188	88	277
Over 20 years	10	325	92	427	10	319	35	364	18	246	69	333
TOTAL	441	2,490	869	3,800	385	2,488	750	3,623	337	2,312	807	3,456

The following is an analysis of the financial results of the insurance activity:


_RECONCILIATION OF NET FINANCIAL INCOME/(EXPENSE) OF THE INSURANCE ACTIVITY – 2025
(Millions of euros)
		2025
		Risk	Savings	Other (2)	Total
		BBA	BBA	Other (2)	Total
Net interest income from the insurance activity		8	59	66	133
	Interest income from insurance activity (Note 25)	16	1,807	79	1,902
	Interest income from the insurance activity (Note 26)	(8)	(1,748)	(13)	(1,769)
Insurance activity OCI		7	12	9	28
	Debt instruments at fair value through OCI	3	(634)	9	(622)
	Finance expenses from insurance contracts issued	4	646		650
OCI reclassified to PL for the effect of net position hedging (Note 29 )			28	3	31
	Amount reclassified from OCI to ROF from financial instruments (1)		28	3	31
Gains or losses on financial assets and liabilities (Note 29)			13	2	15
TOTAL		15	112	80	207
(1) This includes the change in the fair value of derivatives that form part of the hedging of the net position.
(2) This mainly incorporates financial results relating to products measured under IFRS 9 and the portfolio held by insurers unaffected by insurance contracts.


_RECONCILIATION OF THE NET FINANCIAL INCOME/(EXPENSE) OF THE INSURANCE ACTIVITY – 2024
(Millions of euros)
		2024
		Risk	Savings	Other (2)	Total
		BBA	BBA	Other (2)	Total
Net interest income from the insurance activity		7	126	77	210
	Interest income from insurance activity (Note 25)	16	1,808	90	1,914
	Interest income from the insurance activity (Note 26)	(9)	(1,682)	(13)	(1,704)
Insurance activity OCI		4	37	(3)	38
	Debt instruments at fair value through OCI	5	252	(3)	254
	Finance expenses from insurance contracts issued	(1)	(215)		(216)
OCI reclassified to PL for the effect of net position hedging (Note 29)			35	6	41
	Amount reclassified from OCI to ROF of insurance liabilities			6	6
	Amount reclassified from OCI to ROF from financial instruments (1)		35		35
Gains or losses on financial assets and liabilities (Note 29)			9	3	12
Impairment of financial assets at fair value through profit or loss (Note 34 )			2		2
TOTAL		11	209	83	303
(1) This includes the change in the fair value of derivatives that form part of the hedging of the net position.
(2) This mainly incorporates financial results relating to products measured under IFRS 9 and the portfolio held by insurers unaffected by insurance contracts.


_RECONCILIATION OF NET FINANCIAL INCOME/(EXPENSE) OF THE INSURANCE ACTIVITY – 2023
(Millions of euros)
		2023
		Risk	Savings	Other (2)	Total
		BBA	BBA	Other (2)	Total
Net interest income from the insurance activity		9	66	62	137
	Interest income from insurance activity (Note 25)	17	1,640	72	1,729
	Interest income from the insurance activity (Note 26)	(8)	(1,574)	(10)	(1,592)
Insurance activity OCI		9	154	8	171
	Debt instruments at fair value through OCI	19	2,279	8	2,306
	Finance expenses from insurance contracts issued	(10)	(2,125)		(2,135)
OCI reclassified to PL for the effect of net position hedging (Note 29 )			69	5	74
	Amount reclassified from OCI to ROF of insurance liabilities			5	5
	Amount reclassified from OCI to ROF from financial instruments (1)		69		69
Gains or losses on financial assets and liabilities (Note 29)		3	(1)	1	3
TOTAL		21	285	76	382
(1) This includes the change in the fair value of derivatives that form part of the hedging of the net position.
(2) This mainly incorporates financial results relating to products measured under IFRS 9 and the portfolio held by insurers unaffected by insurance contracts.

The amount of income from insurance activities and the movement in the CSM by transitional approach are

shown below:


_RECONCILIATION OF AMOUNTS RECOGNISED ON TRANSITION *
(Millions of euros)
		2025			2024			2023
		New contracts and full retrospective approach	Fair value approach	Total	New contracts and full retrospective approach	Fair value approach	Total	New contracts and full retrospective approach	Fair value approach	Total
Insurance activity income (-)		(939)	177	(762)	(514)	(156)	(670)	(251)	(607)	(858)
CSM AT START OF PERIOD		356	422	778	267	251	518	108	442	550
Changes that relate to future service		337	7	344	249	37	286	212	(41)	171
	Changes in estimates that adjust the CSM	60	7	67	71	37	108	41	(42)	(1)
	Contracts recognised in the period	277		277	178		178	171	1	172
Changes that relate to current service		(236)	(49)	(285)	(170)	(52)	(222)	(58)	(95)	(153)
	CSM recognised for services provided	(236)	(49)	(285)	(170)	(52)	(222)	(58)	(95)	(153)
Other changes						179	179		(57)	(57)
(+) Financial expenses or (-) income		12	8	20	10	7	17	5	2	7
CSM AT THE END OF THE PERIOD		469	388	857	356	422	778	267	251	518
(*) Since the Group has applied the derogation provided for in Article 2 of Commission Regulation (EU) 2023/1803 of 19 November 2021, whereby the annual cohort requirement may be waived for insurance contracts managed under Matching Adjustment techniques and Unit-Linked contracts, the Group does not include these contracts in the reconciliation (ä see Note 2.19 – Insurance transactions – Liabilities under insurance contracts). These contracts amounted to a CSM of 2,943 million euros in 2025, 2,845 million euros in 2024 and 2,938 million euros in 2023.

15. Tangible assets

The breakdown of the changes of the balance under this heading is as follows:


_MOVEMENTS OF TANGIBLE ASSETS
(Millions of euros)
		2025			2024			2023
		Land and buildings	Instal. furniture and others	Rights of use *	Land and buildings	Instal. furniture and others	Rights of use *	Land and buildings	Instal. furniture and others	Rights of use *
Cost
Balance at start of period		3,143	6,230	2,359	3,229	6,081	2,300	3,383	5,980	2,090
	Additions	47	316	88	16	287	127	27	349	227
	Disposals	(8)	(309)	(52)	(20)	(150)	(69)	(30)	(256)	(69)
	Transfers **	(21)	(70)	75	(82)	12	1	(151)	8	52
CLOSING BALANCE		3,161	6,167	2,470	3,143	6,230	2,359	3,229	6,081	2,300
Accumulated depreciation
Opening balance		(838)	(4,329)	(821)	(831)	(4,183)	(683)	(825)	(4,145)	(525)
	Additions	(34)	(211)	(189)	(41)	(211)	(183)	(50)	(204)	(188)
	Disposals	1	296	28	15	121	36	7	217	32
	Transfers **	15	(59)	1	19	(56)	9	37	(51)	(2)
CLOSING BALANCE		(856)	(4,303)	(981)	(838)	(4,329)	(821)	(831)	(4,183)	(683)
Impairment allowances
Balance at start of period		(16)	(16)		(15)	(21)		(18)	(21)
	Provisions				(1)
	Cash and cash equivalents					13		6
	Transfers **		1			(8)		(3)
	Amounts used	3
CLOSING BALANCE		(13)	(15)		(16)	(16)		(15)	(21)
OWN USE, NET		2,292	1,849	1,489	2,289	1,885	1,538	2,383	1,877	1,617
Cost
Balance at start of period		2,002	79		2,248	86		2,492	88
	Additions	21	2		13	1		30	1
	Disposals	(182)	(3)		(104)			(197)	(3)
	Transfers **	(372)	(48)		(155)	(8)		(77)
CLOSING BALANCE		1,469	30		2,002	79		2,248	86
Accumulated depreciation
Balance at start of period		(224)	(53)		(242)	(55)		(240)	(47)
	Additions	(24)	(5)		(28)	(5)		(28)	(9)
	Disposals	25	2		16			35	1
	Transfers **	56	42		30	7		(9)
CLOSING BALANCE		(167)	(14)		(224)	(53)		(242)	(55)
Impairment allowances
Balance at start of period		(541)			(614)			(696)
	Provisions	(104)			(199)			(62)
	Cash and cash equivalents	53			209			71
	Transfers **	111			36			15
	Amounts used	47			27			58
CLOSING BALANCE		(434)			(541)			(614)
INVESTMENT PROPERTY		868	16		1,237	26		1,392	31
BC: business combination; INSTAL.: Installations
(*) Corresponds to the rights of use of land and buildings. With regard to right-of-use assets, the heading “Other financial liabilities – Liabilities associated with right- of-use assets” (ä see Note 19.4) includes the current value of future lease payments during the mandatory period of the contract.
(**) They mainly include the value of property from other balance sheet headings: from “Own use” when an office is closed or from “Non-current assets and disposal groups classified as held for sale” when the asset is put up for rent (ä see Note 18). In addition, in 2025 it includes the transfer of a landmark property to “ Non-current assets and disposal groups classified as held for sale”, with no significant impact on the statement of profit or loss.

15.1. PROPERTY, PLANT AND EQUIPMENT FOR OWN USE

Property, plant and equipment for own use are

assigned to the cash-generating unit (CGU) of the

Banking Business, which at year-end showed no

signs of impairment (ä see Note 16).

In addition, the Group carries out regular

individualised valuations of certain property for own

use classified as “Land and buildings”. At year-end,

the available valuations do not indicate the

existence of any material impairment.

Selected information about property, plant and

equipment of own use is presented below:


_OTHER INFORMATION ON PROPERTY, PLANT AND EQUIPMENT FOR OWN USE
(Millions of euros)
	31-12-2025
Fully depreciated assets still in use	2,988
Commitments to acquire tangible assets *	Insignificant
Assets with ownership restrictions	Insignificant
Assets covered by an insurance policy **	100%
(*) Sales completed in previous years with a subsequent operating lease include purchase options exercisable by the Group at the final maturity of the lease contracts at the market value of the offices at that date.
(**) Some of the insurance policies have an excess. CaixaBank is the holder of a corporate policy entered into with a third party that covers material damage to the Group’s material asset.

16. Intangible assets

16.1. GOODWILL

The breakdown of this heading is as follows:


_BREAKDOWN OF GOODWILL
(Millions of euros)
	CGU	31-12-2025	31-12-2024	31-12-2023
Acquisition of Banca Cívica	Banking	2,020	2,020	2,020
Acquisition of Banca Cívica Vida y Pensiones	Insurance	137	137	137
Acquisition of Cajasol Vida y Pensiones	Insurance	50	50	50
Acquisition of CajaCanarias Vida y Pensiones	Insurance	62	62	62
Acquisition of Banca Cívica Gestión de Activos	Banking	9	9	9
Acquisition of the Morgan Stanley business in Spain	Banking/Insurance *	402	402	402
Acquisition of Bankpime	Banking	40	40	40
Acquisition of CaiFor	Insurance	331	331	331
Acquisition of Sa Nostra Vida	Insurance	43	43	43
TOTAL		3,094	3,094	3,094
(*) Of which 3.7 million euros is allocated to the Insurance CGU and the remainder to the Banking CGU.

16.2. OTHER INTANGIBLE ASSETS

The breakdown of this heading is as follows:


_BREAKDOWN OF OTHER INTANGIBLE ASSETS *
(Millions of euros)
	Useful life	CGU	Resulting useful life	31-12-2025	31-12-2024	31-12-2023
Software and others	4 to 15 years		1 to 15 years	1,690	1,406	1,232
Other (generated by mergers/acquisitions)
BPI - asset management	6-10 years	Banking	1 year	2	4	5
BPI - brand	Indefinite	Banking	Indefinite	20	20	20
Bankia - asset management	13 years	Banking	8 years	66	74	82
Bankia – Asset management (IF & SICAVs)	13 years	Banking	8 years	42	46	51
Bankia - Asset management (PF)	15 years	Banking	10 years	66	73	79
Bankia - Asset management (third-party managers)	13 years	Banking	8 years	8	9	10
Bankia - Cards business	7 years	Banking	2 years	56	76	96
Bankia - Insurance brokerage	5-14 years	Insurance	1-9 years	46	60	74
Bankia Vida - customer portfolio	8-10 years	Insurance	4-6 years	165	195	226
Sa Nostra Vida - customer portfolio	8-10 years	Insurance	6-8 years	14	16	18
TOTAL				2,175	1,979	1,893
(*) Beyond the provisions of Note 36 on the ”la Caixa” brand, the Group’s activities are not dependent on or significantly influenced by patents or licences, industrial contracts, new manufacturing processes or special commercial or financial contracts.

The breakdown of the changes of the balance under this heading is as follows:


_MOVEMENTS IN OTHER INTANGIBLE ASSETS
(Millions of euros)
		2025		2024		2023
		Software	Other assets	Software	Other assets	Software	Other assets
Gross cost
Opening balance		2,503	926	2,185	969	1,893	1,027
	Additions due to business combinations						9
	Additions	550	35	401	36	362	27
	Transfers and other	17	(26)	36	(38)	10	(25)
	Write-downs	(59)		(86)		(54)	(9)
	Other disposals	(6)	(23)	(33)	(41)	(26)	(60)
SUBTOTAL		3,005	912	2,503	926	2,185	969
Accumulated depreciation
Opening balance		(1,102)	(324)	(964)	(277)	(813)	(227)
	Additions	(240)	(88)	(220)	(90)	(201)	(94)
	Transfers and other	(12)	(1)	(11)	(1)	5	(1)
	Write-downs	23		57		25
	Other disposals	4	18	36	44	20	45
SUBTOTAL		(1,327)	(395)	(1,102)	(324)	(964)	(277)
Impairment allowances
Opening balance			(24)		(20)		(23)
	Provisions		(2)		(7)		(10)
	Transfers and other		1		(1)		9
	Amounts used		5		4		4
SUBTOTAL			(20)		(24)		(20)
TOTAL		1,678	497	1,401	578	1,221	672

Selected information related to other intangible

assets is set out below:


_OTHER INFORMATION ON OTHER INTANGIBLE ASSETS
(Millions of euros)
	31-12-2025
Fully amortised assets still in use	901
Commitments to acquire intangible assets	Insignificant
Assets with ownership restrictions	Insignificant

IMPAIRMENT TEST OF THE BANKING CGU

For the purpose of analysing the recoverable

amount of the Banking Business CGU, the Group

performs a regular allocation of the Group's capital

based on internal regulatory capital models, which

take into account the risks assumed by each of the

businesses. The amount to be recovered from the

CGU is compared to its recoverable amount to

determine any potential impairment.

The recoverable amount is based on value in use,

which was determined by discounting the estimated

dividends over the medium term obtained from the

projection of the budget with a time horizon of 6

years. In addition, a semi-annual exercise is carried

out in order to update the projections so as to

incorporate any potential deviations from the model.

The projections are determined using assumptions

based on the macroeconomic data applicable to

the Group's activity, contrasted by means of

renowned external sources and the entities' internal

information.

A summary of the ranges of assumptions used and

the ranges of contrasting sensitivity are provided

below:


_ASSUMPTIONS USED AND BANKING BUSINESS CGU SENSITIVITY SCENARIOS
(Percentage)
	31-12-2025	31-12-2024	31-12-2023	Sensitivity range
Discount rate (after taxes) *	8.7 %	9.1 %	9.9 %	[-0.5 %; + 2.5 %]
Growth rate **	1.0 %	1.0 %	1.0 %	[-0.5 %; + 1.0 %]
Net interest margin on average total assets (NIM) ***	[1.51 % - 1.94 %]	[1.50 % - 1.73 %]	[1.30 % - 1.60 %]	[-0.05 %; + 0.05 %]
Cost of risk (CoR)	[0.23 % - 0.40 %]	[0.25 % - 0.40 %]	[0.31 % - 0.44 %]	[-0.1 %; + 0.1 %]
(*) Calculated on the basis of the interest rate of the German 10-year bond, plus a risk premium. The pre-tax discount rate on 31 December 2025, 2024 and 2023 was 12.4 %, 13.0 % and 14.1 %, respectively.
(**) Corresponds to the normalised flow growth rate used to calculate the residual value.
(***) Net interest income on average total assets.

At the close of the financial year, it has been

confirmed that the projections used in the previous

impairment test and actual figures would not have

affected the conclusions of that test.

Taking into account the excess of the recoverable

value over the carrying amount, the Group does not

consider that any reasonably possible change in any

of the assumptions could, in isolation, cause the

carrying amount to exceed the recoverable value.

The judgements and estimates on the basis of which

the key assumptions have been determined are

those which the Group considers to be the most

plausible and which, therefore, best reflect the value

of the banking business.

As described in Note 3.4.1, the financial forecasts and

their main assumptions used to calculate the

recoverable amount of the banking CGU (particularly

the cost of risk (CoR)) consider various scenarios of

climate risk weighted by their probability of

occurrence. Subsequently, for the purpose of

determining the terminal value, the long-term

growth assumption (g) is estimated on the basis of

the “Net Zero 2050” scenario of the Network for

Greening the Financial System. See the consolidated

Management Report, section “06. Sustainability

information – E – Environment – E1 – Climate

change”, for more information on the Group’s

sustainability strategy, which includes the

environmental and climate strategies.

IMPAIRMENT TEST OF THE INSURANCE

CGU

The methodology for estimating the value of the

insurance CGU in use is the same as the

methodology for the banking CGU, and the results

obtained have not highlighted any indications of

impairment at the close of the financial year.

A summary of the ranges of assumptions used and

the ranges of contrasting sensitivity are provided

below:


_ASSUMPTIONS USED AND INSURANCE ACTIVITY CGU SENSITIVITY SCENARIOS
(Percentage)
	31-12-2025	31-12-2024	31-12-2023	Sensitivity
Discount rate (after tax)	8.5%	10.2%	10.8%	[-0.5%; + 0.5%]
Growth rate *	1.0%	1.0%	1.5%	[-0.5%; + 0.5%]

(*) Corresponds to the normalised growth rate used to calculate the residual value.

17. Other assets and other

liabilities

The breakdown of these items in the balance sheet is as follows:


_BREAKDOWN OF OTHER ASSETS
(Millions of euros)
		31-12-2025	31-12-2024	31-12-2023
Inventories (1)		53	55	93
Remainder of other assets (2)		1,370	1,663	1,727
	Prepayments and accrued income (3)	706	792	734
	Net assets in pension plans (Note 20.1) (4)	34	64	137
	Ongoing transactions	469	598	613
	Dividends on equity securities accrued and receivable	1	26	44
	Other	160	183	199
TOTAL OTHER ASSETS		1,423	1,718	1,820
(1) This includes non-financial assets held for sale in the ordinary course of business, that are in the process of production, construction or development for such sale, or that are to be consumed in the production process or in the rendering of services.
(2) With the exception of those indicated in the other notes, this includes the amount of all the liability accrual accounts, except those corresponding to interest, transactions in transit when it is not possible to allocate them, and the amount of the remaining liabilities not included in other categories.
(3) This includes a prepaid expense arising from the termination of the distribution agreements with Mapfre for non-life insurance, which accrues in the same period as the current distribution agreement with Mutua Madrileña. The amount remaining at 31 December 2025 is 118 million euros.
(4) This includes the fair value of insurance policies to cover pension commitments that must be recorded as a separate asset because they do not meet the requirements to be considered assets related to defined benefit post-employment plans.


_BREAKDOWN OF OTHER LIABILITIES
(Millions of euros)
	31-12-2025	31-12-2024	31-12-2023
Prepayments and accrued income (1)	1,235	1,461	1,431
Ongoing transactions	677	766	1,630
Others (2)	425	57	35
TOTAL OTHER LIABILITIES (3)	2,337	2,284	3,096
(1) Includes anticipated income arising from the agreement reached between CaixaBank and Mutua Madrileña and SegurCaixa Adeslas for the increase of the Bankia network under the distribution agreement. The income is accrued over a period of 10 years, consistent with the accrual of the expense for part of the compensation for the breaking of the non-life agreements with Mapfre. The amount remaining at 31 December 2025 is 390 million euros.
(2) At 31 December 2025, this includes the rebate received from the Tax Agency in the amount of 266 million euros (ä see Note 20.3.2).
(3) This includes the amount of all the liability accrual accounts, except those corresponding to interest, and the amount of the remaining liabilities not included in other categories.

18. Non-current assets held for

sale

The breakdown of the changes of the balance under this heading is as follows:


_MOVEMENT IN NON-CURRENT ASSETS HELD FOR SALE
(Millions of euros)
	2025			2024			2023
	Foreclosed assets		Other assets (2)	Foreclosed assets		Other assets (2)	Foreclosed assets		Other assets (2)
	Foreclo- sure rights (1)	Other	Other assets (2)	Foreclo- sure rights (1)	Other	Other assets (2)	Foreclo- sure rights (1)	Other	Other assets (2)
Gross cost
Opening balance	128	2,176	650	144	2,338	582	180	2,782	620
Additions	54		6	84	166	17	92	56	1
Transfers and other (3) (4)	(110)	207	525	(100)	198	220	(128)	320	658
Disposals for the year		(694)	(457)		(526)	(169)		(820)	(697)
CLOSING BALANCE	72	1,689	724	128	2,176	650	144	2,338	582
Impairment allowances
Opening balance	(27)	(766)	(149)	(29)	(787)	(127)	(38)	(926)	(192)
Provisions	(2)	(137)	(72)	(1)	(351)	(53)	(1)	(168)	(110)
Recoveries	3	48	38		255	21	1	85	77
Transfers and other (5)	4	(16)	15	3	(75)	(54)	9	(68)	70
Amounts used	4	249	102		192	64		290	28
CLOSING BALANCE	(18)	(622)	(66)	(27)	(766)	(149)	(29)	(787)	(127)
TOTAL	54	1,067	658	101	1,410	501	115	1,551	455
(1) Rights arising from foreclosure proceedings are measured initially at the carrying amount at which the asset will be recognised when the definitive foreclosure occurs.
(2) Mainly includes: investments and financial assets reclassified as non-current assets classified as held for sale, assets deriving from the termination of operating lease agreements and closed branches.
(3) These mainly correspond to the reclassification of rights arising from foreclosure proceedings to “Other assets arising from credit restructurings” or to “Investment property” when a property is put up for rent for assets arising from credit restructurings (ä see Note 15).
(4) In 2025, the transfer of a landmark building from the “Tangible assets” heading is included (ä see Note 15). In 2025 and 2024, it also includes, under transfers and other items, financial assets from portfolio sales pending completion transferred from “Financial assets at amortised cost”. The financial assets transferred in 2024 were derecognised in 2025.
(5) Includes provisions recognised to hedge against the risk of insolvency on credit operations of CaixaBank cancelled through the acquisition of real estate assets by BuildingCenter.

The breakdown, by age, of assets arising from credit restructurings, excluding impairment allowances,

determined on the basis of the foreclosure date, is as follows:


_FORECLOSED ASSETS AGE
(Millions of euros)
	31-12-2025		31-12-2024		31-12-2023
	No. of assets	Gross amount	No. of assets	Gross amount	No. of assets	Gross amount
Up to 1 year	632	60	992	98	1,221	134
Between 1 and 2 years	891	89	1,186	118	1,429	144
Between 2 and 5 years	2,740	269	3,882	362	5,718	451
More than 5 years	16,024	1,343	20,496	1,726	19,931	1,753
TOTAL	20,287	1,761	26,556	2,304	28,299	2,482

19. Financial liabilities

19.1. FINANCIAL LIABILITIES HELD FOR TRADING

The breakdown of this heading is as follows:


_BREAKDOWN OF FINANCIAL LIABILITIES HELD FOR TRADING
(Millions of euros)
	31-12-2025		31-12-2024		31-12-2023
	Banking and other business	Insurance activity	Banking and other business	Insurance activity	Banking and other business	Insurance activity
Derivatives (Note 12.1)	2,826		3,420		2,189
Short positions	307		211		64
TOTAL	3,133		3,631		2,253

19.2. FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE

THROUGH PROFIT OR LOSS

The breakdown of this heading is as follows:


_BREAKDOWN OF FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Banking and other business	Insurance activity *	Banking and other business	Insurance activity *	Banking and other business	Insurance activity *
Deposits			4,269		3,594		3,281
	Customers		4,269		3,594		3,281
Other financial liabilities			4		6		2
TOTAL			4,273		3,600		3,283
(*) These correspond primarily to financial liabilities of certain BPI Vida e Pensões products that do not incorporate a significant transfer of insurance risks and are, therefore, classified and measured under the scope of IFRS 9.

19.3. FINANCIAL LIABILITIES AT AMORTISED COST

19.3.1. DEPOSITS FROM CREDIT INSTITUTIONS

The breakdown of this heading is as follows:


_BREAKDOWN OF DEPOSITS FROM CREDIT INSTITUTIONS
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Banking and other business	Insurance activity	Banking and other business	Insurance activity	Banking and other business	Insurance activity
On demand		1,827		1,257		1,765
	Other accounts	1,827		1,257		1,765
Term or at notice		18,042		9,716		16,911
	Deposits with agreed maturity	2,703		3,613		3,796
	Repurchase agreement	15,338		6,103		13,115
Value adjustments		18		109		187
TOTAL		19,887		11,082		18,863

19.3.2. CUSTOMER DEPOSITS

The breakdown of this heading is as follows:


_BREAKDOWN OF CUSTOMER DEPOSITS
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Banking and other business	Insurance activity	Banking and other business	Insurance activity	Banking and other business	Insurance activity
By type		446,938	874	423,486	752	396,761	738
	Current accounts and other demand deposits	272,267		255,245		240,763
	Savings accounts	93,733		89,176		90,037
	Deposits with agreed maturity	67,937	874	68,644	752	57,071	738
	Hybrid financial liabilities	517		533		661
	Repurchase agreements	11,813		8,914		7,394
	Value adjustments	671		974		835
By sector		446,938	874	423,486	752	396,761	738
	General governments	31,925		27,305		17,431
	Private sector	414,342	874	395,207	752	378,495	738
	Value adjustments	671		974		835

19.3.3. DEBT SECURITIES ISSUED

The breakdown of this heading is as follows:


_BREAKDOWN OF DEBT SECURITIES ISSUED
(Millions of euros)
	31-12-2025		31-12-2024		31-12-2023
	Banking and other business	Insurance activity	Banking and other business	Insurance activity	Banking and other business	Insurance activity
Mortgage covered bonds	8,197		14,825		15,583
Senior bonds *	28,723		28,246		26,243
Securitised bonds	1,334		608		918
Structured notes	445		770		1,433
Promissory notes	1,142		1,054		1,139
Preference shares	4,745		4,250		4,500
Subordinated debt	6,473		5,503		5,475
Value adjustments	1,147		1,307		1,464
TOTAL	52,206		56,563		56,755
(*) Includes senior bonds or ordinary bonds and non-preferred senior bonds or ordinary bonds.

The changes in the balances of each type of securities issued is as follows:


_MOVEMENTS IN DEBT SECURITIES ISSUED
(Millions of euros)
		Mortgage covered bonds	Public sector covered bonds	Senior bonds	Securitis ed bonds	Structured notes	Subor- dinated debt	Preference shares
Gross balance
Balance at the beginning of the year 2023		62,240	5,100	21,838	27,972	1,419	4,900	4,250
	Issuances	7,450	150	7,792	5,000	347	1,568	750
	Redemptions	(9,575)	(150)	(3,251)	(6,649)	(290)	(1,000)	(500)
CLOSING BALANCE 2023		60,080	5,100	26,296	26,323	1,476	5,475	4,500
Repo securities
Balance at the beginning of the year 2023		(45,062)	(5,100)	(54)	(26,797)	(110)
	Buybacks	(6,531)	(150)	(2)	(5,000)	(7)
	Repayments and other	7,096	150	3	6,392	74
CLOSING BALANCE 2023		(44,497)	(5,100)	(53)	(25,405)	(43)
CLOSING NET BALANCE 2023		15,583		26,243	918	1,433	5,475	4,500


Gross balance
Balance at the beginning of the year 2024		60,080	5,100	26,296	26,323	1,476	5,475	4,500
	Issuances	8,600		5,684		717	1,000	750
	Redemptions	(5,134)	(2,500)	(4,000)	(5,808)	(1,411)	(1,000)	(1,000)
	Exchange differences and other	56		316			28
YEAR-END BALANCE 2024		63,602	2,600	28,296	20,515	782	5,503	4,250
Repo securities
Balance at the beginning of the year 2024		(44,497)	(5,100)	(53)	(25,405)	(43)
	Buybacks	(7,869)				(6)
	Repayments and other	3,589	2,500	3	5,498	37
YEAR-END BALANCE 2024		(48,777)	(2,600)	(50)	(19,907)	(12)
NET BALANCE AT YEAR-END 2024		14,825		28,246	608	770	5,503	4,250

Gross balance
Balance at the beginning of the year 2025		63,602	2,600	28,296	20,515	782	5,503	4,250
	Issuances	10,150		5,844	2,040	414	2,000	1,500
	Redemptions	(13,150)		(4,636)	(5,815)	(718)	(1,000)	(1,005)
	Exchange differences and other	(108)		(731)			(30)
CLOSING BALANCE 2025		60,494	2,600	28,773	16,740	478	6,473	4,745
Repo securities
Balance at the beginning of the year 2025		(48,777)	(2,600)	(50)	(19,907)	(12)
	Buybacks	(9,710)			(858)	(41)
	Repayments and other	6,190			5,359	20
CLOSING BALANCE 2025		(52,297)	(2,600)	(50)	(15,406)	(33)
CLOSING NET BALANCE 2025		8,197		28,723	1,334	445	6,473	4,745

The breakdown of preference share issues are as follows:


_BREAKDOWN OF PREFERENCE SHARE ISSUES *
(Millions of euros)
		Nominal amount	Annual remuneration	Outstanding balance
Issue date	Maturity	Nominal amount	Annual remuneration	31-12-2025	31-12-2024	31-12-2023
June 2017		1,000	6.750 %			1,000
March 2018	Perpetual	1,250	5.250 %	245	1,250	1,250
October 2020	Perpetual	750	5.875 %	750	750	750
September 2021	Perpetual	750	3.625 %	750	750	750
March 2023	Perpetual	750	8.250 %	750	750	750
January 2024	Perpetual	750	7.500 %	750	750
January 2025	Perpetual	1,000	6.250 %	1,000
September 2025	Perpetual	500	5.875 %	500
TOTAL				4,745	4,250	4,500
(*) These are perpetual Additional Tier 1 capital instruments, although they may be redeemed (in whole or in part) in certain circumstances at CaixaBank’s discretion (once at least five years have elapsed from their issue date, in accordance with the specific terms of each instrument, and subject to the prior consent of the competent authority) and, in any event, they will be converted into newly issued ordinary shares of the Bank if CaixaBank or the Group were to report a CET1 ratio, calculated in accordance with the CRR, below 5.125 %. The conversion price of the preference shares shall be the highest of i) the volume-weighted daily average price of CaixaBank’s shares in the five trading days prior to the day the corresponding conversion is announced, ii) the conversion floor price and iii) the nominal value of CaixaBank’s shares at the time of conversion.

A breakdown of subordinated debt issues (Tier 2 capital instruments) is presented below:


_BREAKDOWN OF SUBORDINATED DEBT ISSUES
(Millions of euros/pounds sterling)
Issue date	Maturity	Nominal amount	Currency	Annual remuneration	Outstanding amount
Issue date	Maturity	Nominal amount	Currency	Annual remuneration	31-12-2025	31-12-2024	31-12-2023
July 2017	July 2042	150	EUR	4.000 %	150	150	150
April 2018		1,000	EUR	2.250 %		1,000	1,000
Issue date		1,000	EUR	3.750 %			1,000
March 2021	June 2031	1,000	EUR	1.250 %	1,000	1,000	1,000
November 2022	February 2033	750	EUR	6.250 %	750	750	750
January 2023	October 2033	500	GBP	6.875 %	573	603	575
May 2023	Mayo 2034	1,000	EUR	6.125 %	1,000	1,000	1,000
August 2024	August 2036	1,000	EUR	4.375 %	1,000	1,000
March 2025	March 2037	1,000	EUR	4.000 %	1,000
November 2025	May 2038	1,000	EUR	3.875 %	1,000
TOTAL (1)					6,473	5,503	5,475
(1) This does not include two issues from integrations, dated December 1990 and June 1994, with an outstanding balance of 18 million euros and 1 million euros, respectively, which are classified under “Customer deposits”.

19.4. OTHER FINANCIAL LIABILITIES

The detail of the balance of this heading in the balance sheet is as follows:


_BREAKDOWN OF OTHER FINANCIAL LIABILITIES
(Millions of euros)
	31-12-2025		31-12-2024		31-12-2023
	Banking and other business	Insurance activity	Banking and other business	Insurance activity	Banking and other business	Insurance activity
Payment obligations	652	96	655	129	963	210
Guarantees received	49		33		26
Clearing houses	811		1,372		1,004
Tax collection accounts	2,206	1	2,014	1	1,914	1
Special accounts	377	13	493	111	411	123
Liabilities associated with rights-of-use assets (Note 15)	1,506	4	1,569	4	1,656	4
Other items	686		459	1	473
TOTAL	6,287	114	6,595	246	6,447	338

The heading “Other financial liabilities – Liabilities

associated with right-of-use assets” (ä see Note 15)

presents the current value of future lease payments

during the mandatory period of the contract. The

changes during the year were as follows:


_BREAKDOWN OF FUTURE OPERATING LEASE PAYMENTS
(Millions of euros)
	2025	2024	2023
Balance at start of period	1,573	1,660	1,608
Net additions	126	102	241
Discount unwinding	17	18	15
Payments	(206)	(207)	(204)
BALANCE AT PERIOD-END	1,510	1,573	1,660
Applied discount rate (according to the term) *
Spain	[0.00%-4.02%]	[0.00%-4.02%]	[0.00%-4.02%]
Portugal	[2.27%-4.28%]	[2.27%-3.52%]	[3.65%-3.94%]
(*) The difference in the discount rate applied for businesses in Spain and Portugal is primarily due to the term of the lease agreements in each case.

19.5. SHORT-TERM FUNDING

The breakdown of short-term funding is as follows:


_DETAILS OF SHORT-TERM FINANCING
(Millions of euros)
	2025		2024		2023
	Amount	Average rate	Amount	Average rate	Amount	Average rate
Repurchase agreement
Closing balance	27,151	1.99 %	15,017	2.91 %	20,509	3.78 %
Annual average	28,915	2.22 %	26,461	3.55 %	33,886	3.21 %
Maximum in the period	40,281	1.98 %	40,849	3.84 %	41,423	3.84 %
Promissory notes
Closing balance	1,142	2.30 %	1,054	3.47 %	1,139	3.96 %
Annual average	635	2.51 %	662	3.75 %	873	3.36 %
Maximum in the period	1,172	2.30 %	1,034	3.67 %	1,253	3.97 %

20. Provisions

The breakdown of the changes of the balance under this heading is as follows:


_MOVEMENT OF PROVISIONS
(Millions of euros)
		Pensions and other post- employment defined benefit obligations	Other long- term employee benefits	Pending legal issues and tax litigation		Commitments and guarantees given		Remaining provisions
			Other long- term employee benefits	Legal contingen- cies *	Provisions for taxes	Contin- gent risks	Contingent commitments	Remaining provisions
BALANCE AT 31-12-2022		579	2,582	654	317	460	87	552
With a charge to the statement of profit or loss		20	67	176	(7)	(125)	31	11
	Provision		36	344	11	(70)	144	171
	Reversal		(7)	(168)	(18)	(55)	(113)	(160)
	Interest cost / (income)	20	39
	Personnel expenses		(1)
Actuarial (gains)/losses charged to equity		26
Amounts used		(51)	(557)	(230)	(11)			(115)
Transfers and other		25	(9)	27		(9)	2	(30)
BALANCE AT 31-12-2023		599	2,083	627	299	326	120	418
With a charge to the statement of profit or loss		17	84	213	2	(3)	(22)	101
	Provision		67	309	7	91	99	223
	Reversal		(1)	(96)	(5)	(94)	(121)	(123)
	Interest cost/(income)	17	30
	Personnel expenses		(12)					1
Actuarial (gains)/losses charged to equity		(2)
Amounts used		(51)	(434)	(197)	(16)			(167)
Transfers and other *			(39)	257	9	1		33
BALANCE AT 31-12-2024		563	1,694	900	294	324	98	385
With a charge to the statement of profit or loss		17	23	117	39	(33)	19	44
	Provision		7	311	184	273	266	176
	Reversal			(194)	(145)	(306)	(247)	(132)
	Interest cost/(income)	17	20
	Actuarial (gains)/losses		(4)
Actuarial (gains)/losses charged to equity		(37)
Amounts used		(46)	(366)	(185)	(51)			(150)
Transfers and other *			(3)	112	1	7	1	18
BALANCE AT 31-12-2025		497	1,348	944	283	298	118	297
(*) In 2025 and 2024, it includes additional coverage amounting to 148 and 255 million euros, respectively, intended to cover the expected loss associated with future changes in cash flows other than credit risk, transferred from “ Financial assets at amortised cost” (ä see Note 11.4).

20.1. PENSIONS AND OTHER POST EMPLOYMENT DEFINED BENEFIT

OBLIGATIONS

PROVISIONS FOR PENSIONS AND SIMILAR

OBLIGATIONS – DEFINED BENEFIT POST-

EMPLOYMENT PLANS

The Group’s defined benefit post-employment

benefit obligations are as follows:

| Part of the commitments with employees and

former employees of CaixaBank are covered

using insurance policies with Group or non-

Group insurance companies, mainly from

merger processes. In this case, CaixaBank is the

insurance policyholder, and the contracts are

managed by each insurance company, which

also assumes the risks.

| The remaining commitments attributable to the

businesses in Spain are implemented through

the CaixaBank Employment Pension Plan. The

commitments assumed by the Pension Plan are

integrated into the Pensiones Caixa 30 Pension

Fund. The Pension Fund has its defined benefit

obligations insured through various insurance

contracts, under which the policyholder is the

Pension Plan Control Committee itself, most of

them with VidaCaixa. CaixaBank does not control

the Pension Fund in which the commitments are

integrated, although it has minority

representation on the Control Committees

established in each of them.

| Since most of the defined benefit commitments

are covered through the pension fund or

through insurance policies taken out directly by

CaixaBank —the purpose of which is to ensure

the provisions payable by the beneficiaries are

equivalent to the provisions insured under the

policies taken out— the Group is not exposed to

market volatility and unusual market patterns. At

different closures, the fair value of the policies

taken out directly with VidaCaixa or other

companies, and that of pension fund assets

(mainly covered through insurance policies), is

calculated with a uniform assessment

methodology, as laid down in the accounting

standard.

If an insurance policy is a CaixaBank Employment

Pension Plan asset and its flows exactly match the

amount and timing of the benefits payable under

the plan, the fair value of these insurance policies is

deemed to be the present value of the related

obligations. There will only be a defined benefit net

liability when certain commitments are not insured

by CaixaBank or the pension fund, for example,

longevity queues for which the insurers have not

been able to find financial instruments with a

sufficiently long duration that replicate the

guaranteed payments. Otherwise an asset would be

produced as a net position.

Whilst the insurance policies taken out with insurers

external to the Group and the value of the assets

held through the Pension Funds are presented in net

form on the balance sheet, given that they are

eligible assets of the plan and are used to settle the

obligations assumed, the fair value of the other

policies taken out directly by CaixaBank with

VidaCaixa is eliminated in the consolidation process,

with the integration of the financial investments of

VidaCaixa under the policies in the various heading

of the consolidated balance sheet.

Meanwhile, BPI has assumed all the obligations

externalised in the “Fundo de Pensões Banco BPI”

pension fund, and recognises the present value of

the obligations, net of the fair value of plan assets.

The breakdown of the changes of the balance under

this heading is as follows:


_CHANGES IN PROVISIONS FOR PENSIONS AND SIMILAR OBLIGATIONS
(Millions of euros)
	Related entity *						Non-related entity **
	Defined benefit obligations			Fair value of redemption rights			Defined benefit obligations (A)			Fair value of plan assets (B)			Net assets/ (liabilities) for defined benefit obligations (A+B)
	2025	2024	2023	2025	2024	2023	2025	2024	2023	2025	2024	2023	2025	2024	2023
OPENING BALANCE	(563)	(599)	(579)	561	598	578	(2,718)	(2,766)	(2,578)	2,776	2,903	2,986	58	137	408
Interest cost (income)	(17)	(17)	(20)	17	17	20	(28)	(28)	(34)	91	89	105	63	61	71
Past service cost							(58)	(52)	(52)				(58)	(52)	(52)
CHARGED TO PROFIT OR LOSS	(17)	(17)	(20)	17	17	20	(86)	(80)	(86)	91	89	105	5	9	19
Actuarial gains/ (Losses) arising from experience assumptions	14	(5)	(2)				8	(8)	(197)				8	(8)	(197)
Actuarial gains/ (Losses) arising from financial assumptions	23	7	(24)	(37)	(3)	26	44	13	(38)	(107)	(27)	100	(63)	(14)	62
CHARGED TO EQUITY	37	2	(26)	(37)	(3)	26	52	5	(235)	(107)	(27)	100	(55)	(22)	(135)
Plan contributions							(4)	(4)	(4)			(1)	(4)	(4)	(5)
Plan payments	46	51	51	(46)	(51)	(51)	177	169	168	(177)	(174)	(170)		(5)	(2)
Settlements										(13)	(22)	(126)	(13)	(22)	(126)
Transactions			(25)			25		(42)	(31)	43	7	9	43	(35)	(22)
OTHER	46	51	26	(46)	(51)	(26)	173	123	133	(147)	(189)	(288)	26	(66)	(155)
CLOSING BALANCE	(497)	(563)	(599)	495	561	598	(2,579)	(2,718)	(2,766)	2,613	2,776	2,903	34	58	137

Recognised in:
“Other assets – Net pension plan assets” (Note 17)													34	58	137
“Provisions – Pensions and other post-employment defined benefit obligations (Note 20)	(497)	(563)	(599)

Type of obligation
Vested obligations	(497)	(563)	(599)				(2,579)	(2,718)	(2,766)
Non-vested obligations

Type of investment
Implemented through insurance policies				495	561	598				2,613	2,776	2,903
(*) The obligations are insured with a related company, the Group being the policyholder.
(**) The obligations are insured with a third party or the Group is not the policyholder.

The present value of defined benefit obligations was

calculated using the following criteria:

| The “projected unit credit” accrual method has

been used, which considers each year of service

as giving rise to one additional unit of benefit

entitlement and measures each unit separately.

| The estimated retirement age of each employee

is the first age at which the employee has the

right to retire or the age determined in the

agreements, as applicable.

| The actuarial and financial assumptions used in

the measurement are unbiased and mutually

compatible.

The assumptions used in the actuarial valuations of the commitments in Spain are as follows:


_ACTUARIAL AND FINANCIAL ASSUMPTIONS IN SPAIN
	31-12-2025	31-12-2024	31-12-2023
Discount rate of post-employment benefits (1)	3.73%	3.26 %	3.03 %
Long-term benefit discount rate (1)	2.46%	2.62 %	3.00 %
Mortality tables (2)	PERM-F/2000 - P	PERM-F/2000 - P	PERM-F/2000 - P
Annual pension review rate (3)	0.35%	0.35 %	0.35 %
Annual cumulative CPI (4)	2.25%	2.66 %	2.89 %
Annual salary increase rate (5)	CPI +0.5 %	CPI +0.5 %	CPI +0.5 %
(1) Rate resulting from using a rate curve based on high-rated corporate bonds, with the same currency and terms as the commitments assumed. Rate informed on the basis of the weighted average term of these commitments.

(2) It has been decided to use the PERM-F/2000-P tables as they best fit the survival pattern of the collective, based on historical experience.
(3) Depending on each obligation. Based on the Agreement to Amend Employment Conditions signed on 7 July 2021, a fixed rate of 0.35 % has been considered as a future revaluation for pension commitments arising from collective systems, covenants and/or agreements.
(4) Using the Spanish zero coupon inflation curve. Rate informed on the basis of the weighted average term of the commitments.
(5) The wage growth assumption incorporates future changes in the employment category of employees. However, the entire defined benefit group is currently a beneficiary group. Thus, this assumption has no impact on the accounting valuation.

The following assumptions are used in the actuarial variations of the commitments in Portugal:


_ACTUARIAL AND FINANCIAL ASSUMPTIONS IN PORTUGAL
	31-12-2025	31-12-2024	31-12-2023
Discount rate (1)	3.96%	3.40 %	3.20 %
Mortality tables for males	TV 88/90 - 1 year	TV 88/90 - 1 year	TV 88/90 - 1 year
Mortality tables for females	TV 90/01 - 2 years	TV 90/01 - 2 years	TV 90/01 - 2 years
Annual pension review rate	2.00% 2025; 2.00% 2026; 1.00% and onwards	2.50% 2025; 1.50% 2026; 0.75% and onwards	2.50% 2024; 2.00% 2025; 0.75% and onwards
Annual salary increase rate	[2.50 - 3.50] % 2025; [2.50 - 3.50] % 2026; [1.50 - 2.50] % and onwards	[3.00 - 4.00] % 2025; [2.00 - 3.00] % 2026; [1.25 - 2.25] % and onwards	[3.00 - 4.00] % 2024; [2.50 - 3.50] % 2025; [1.25 - 2.25] % and onwards
(1) Rate resulting from using a rate curve based on high-rated corporate bonds, with the same currency and terms as the commitments assumed.

Actuarial valuation of pension commitments is

carried out by qualified actuaries independent of the

Group.

Additionally, in order to preserve the governance of

the valuation and the management of the risks

inherent to the acceptance in these commitments,

CaixaBank has established an activity framework

where the ALCO manages hedging proposals for

these risks and the Global Risks Committee approves

any changes to the criteria to measure the liabilities

reflected in these commitments for businesses in

Spain.

Below follows a sensitivity analysis of the value of

obligations based on the main assumptions used in

the actuarial valuation. To determine this sensitivity,

the calculation of the value of the obligations is

replicated, changing the specific variable and

maintaining the remaining actuarial and financial

assumptions unchanged. One drawback of this

method is that it is unlikely that a change will occur in

one variable alone as some of the variables may be

correlated:


_SENSITIVITY ANALYSIS OF LIABILITIES - FINANCIAL ASSUMPTIONS
(Millions of euros)
	Spain		Portugal
	+50 bp	-50pb	+50 bp	-50 pb
Discount rate	(20)	21	(100)	111
Annual pension review rate (1)	0	0	107	(99)
Annual salary increase rate (2)	0	0	27	(22)

(1) According to the Labour Agreement signed on 7 July 202, fixed annual growth for Spain is 0.35 %, which corresponds to the annual pension review rate. However, sensitivity is presented only for certain obligations whose revaluation is estimated based on the CPI.
(2) Currently, regarding the annual salary increase rate, the entire defined benefit group in Spain comprises beneficiaries. Therefore, it has no impact on the sensitivity analysis.


_ANALYSIS OF SENSITIVITY OF THE OBLIGATIONS – ACTUARIAL ASSUMPTIONS
(Millions of euros)
	Spain		Portugal
	+1 year	-1 year	+1 year	-1 year
Mortality tables	(15)	15	(56)	57

The estimate of the fair value of insurance contracts

related to pensions taken out directly by CaixaBank

with VidaCaixa or other entities, and the estimate of

the value of assets of the pension fund (mainly also

insurance policies), consider the value of discounted

future payments guaranteed following the same

rates curve used for obligations. Thus, given that the

expected flows of payments are matched to those

that will be derived from the policies, potential

reasonable changes at year-end in the discount rate

would have a similar impact on the fair value of the

insurance contracts linked to pensions and the fair

value of the assets held through pension funds.

As disclosed in Note 2.12, the sensitivity of the

obligations has only been calculated when certain

commitments are not insured by CaixaBank or the

pension fund, for example, certain aforementioned

longevity queues for business in Spain.

The estimated payment of provisions is outlined

below:


_ESTIMATED SCHEDULE FOR PAYMENT OF OBLIGATIONS
(Millions of euros)
	2026	2027	2028	2029	2030	2031- 2035
Spain *	46	45	43	42	40	174
Portugal	98	100	100	101	101	502
(*) Excluding insured provisions to be paid directly by VidaCaixa to the Pension Funds.

20.2. PROVISIONS FOR OTHER EMPLOYEE BENEFITS

The Group has funds to cover the commitments of

its discontinuation programmes, both in terms of

salaries and other social costs, from the moment of

termination until reaching the age established in the

agreements. Funds are also in place covering length

of service bonuses and other obligations with

existing personnel. The main programmes with

outstanding funds are listed below:


_SEVERANCE PROGRAMMES
(Millions of euros)
	Year recognised	Number of people	Initial provision
Labour agreement for Barclays Bank personnel restructuring	2015	968	187
Labour agreement	2019	2,023	978
Early retirement scheme	2021	6,452	1,884

The breakdown of the changes of the balance under this heading is as follows:


_RECONCILIATION OF OTHER LONG-TERM EMPLOYEE BENEFITS BALANCES
(Millions of euros)
	Defined benefit
	2025	2024	2023
OPENING BALANCE SHEET	1,694	2,083	2,582
Service cost for the current year	7	9	5
Past service cost		3	6
Interest net cost (income)	20	30	39
Revaluations (Gains)/Losses	(4)	42	17
CHARGED TO PROFIT OR LOSS	23	84	67
Benefits paid	(366)	(434)	(557)
Transactions	(3)	(39)	(9)
OTHER	(369)	(473)	(566)
CLOSING BALANCE SHEET	1,348	1,694	2,083
Of which: With pre-retired personnel	8	18	33
Of which: Termination benefits	1,271	1,607	1,983
Of which: Length of service bonuses and other	67	66	64
Of which: Other commitments	2	3	3

20.3. PROVISIONS FOR PROCEDURAL MATTERS ISSUES AND

PENDING TAX LITIGATION

20.3.1. LEGAL CONTINGENCIES

Litigation in the field of banking and financial

products is subject to comprehensive monitoring

and control so as to identify any risks that could lead

to the outflow of funds from the Bank, making the

necessary allocations, taking the appropriate action

in terms of adaptation, and improving procedures,

products and services.

The dynamic nature of litigiousness and the high

disparity of judicial criteria, as well as the legislative

reforms affecting the sector, frequently drive

changes in scenarios, without prejudice to which the

Group has established monitoring mechanisms to

control the progress of claims, actions and different

judicial sensitivities on the contentious matters that

make it possible to identify, define and estimate risks,

based on the best information available at any given

time.

One of the main developments in 2025 was the entry

into force, on 3 April 2025, of Organic Law 1/2025 of 2

January, on measures to improve the efficiency of

the Public Justice Service. This law transforms single-

judge courts into courts of first instance and

prescribes the use of Alternative Dispute Resolution

(ADR) in civil and commercial matters as a

procedural requirement for the admission of a

lawsuit.

In the case of disputes under general conditions,

generally linked to the granting of mortgage loans to

consumers (e.g. floor clauses, multi-currency clauses,

mortgage expenses, advance maturity, etc.), the

necessary provisions are held and the Group

maintains ongoing dialogue with customers in order

to explore agreements on a case-by-case basis.

Similarly, CaixaBank leads the adherence to

extrajudicial dispute resolution systems promoted by

certain judicial bodies that resolve these matters, in

order to promote amicable solutions that avoid

litigating with customers and help alleviate the

judicial burden.

In the same way, CaixaBank and its Group

companies have adapted its provisions to the risk of

ongoing actions arising from claims for the amounts

of payments on account for the purchase of off-plan

housing, banking, financial and investment products,

excessive and abnormal price of interest rates, right

to reputation or statements of subsidiary civil liability

arising from the potential conduct of persons with

employment links.

Lastly, a criterion of prudence is adopted for posting

provisions for possible punishable administrative

procedures, for which coverage is allocated in

accordance with the economic criteria that may be

laid down by the specific administration regarding

the procedure, without prejudice to the full exercise

of the right of defence in instances, where

applicable, in order to reduce or annul the potential

sanction.

The content of the main sections of this heading is

set out below.

IRPH (MORTGAGE LOAN REFERENCE INDEX)

The six judgments handed down to date by the Court

of Justice of the European Union (CJEU) have

provided clarity in the adjudication of claims

challenging the lack of transparency in loans

referencing the IRPH index — judgment of 3 March

2020, two orders of 17 November 2021, order of 28

February 2023, judgment of 13 July 2023, and

judgment of 12 December 2024. Likewise, the

judgments handed down by the First Chamber of the

Supreme Court (TS) have implemented the doctrine

of the CJEU, which has been further reinforced by the

recent judgments (1,590/2025 and 1,591/2025)

delivered by the Plenary of the Supreme Court on 11

November 2025, in which the validity of the clause is

upheld provided that certain requirements are met.

Additionally, the TS has issued a new ruling dated 23

December 2025 - in a matter related to CaixaBank,

originating from BMN - whose ruling is favourable. It

states that the absence of historical data on market

APRs in the Bank of Spain/INE databases prior to 2003

does not prevent the APR applied in 2000 from being

considered balanced. The TS bases this conclusion

on the small difference that existed on the

contracting date between the IRPH Cajas quote and

the Euribor, and on the fact that the agreed

differential was 0 points.

The chief legal conclusion of the current judicial

framework and without prejudice to its eventual

change, is the validity of mortgage loans that include

such an index.

The pre-contractual and contractual information

provided to consumers in relation to mortgage loans

incorporating that index must be examined on a

case-by-case basis in order to determine whether or

not they are affected by a lack of transparency. In

any event, for the Supreme Court, in line with the

settled case law of the CJEU, a potential finding of

lack of transparency requires a subsequent

assessment of abusiveness, and such abusiveness —

due to the existence of bad faith and a significant

imbalance — does not arise in these cases. The CJEU

has identified key factors stating that the calculation

method of the IRPH index is akin to other market

indices, which holds true, and that the Annual

Percentage Rate of Charge (APR) of the contract in

question matches the market rates at the time of

signing, a result of market supply and demand

dynamics.

In accordance with the current legal validity and

reasonableness of the foregoing, in addition to the

best information available to date, the Group does

not maintain provisions for this item, without

prejudice to the availability of a fund to cover

potential isolated disbursements in specific cases

where the Court applies a doctrine that conflicts with

that established by the Spanish High Court.

LITIGATION LINKED TO THE FORMALISATION COSTS

CLAUSE IN MORTGAGE LOANS

The ruling of the First Chamber of the Spanish High

Court of 23 December 2015 led to an increase in

claims and lawsuits relating to the general

conditions regulating the application of origination

fees in mortgage loans.

The Group has adapted its conduct to the decisions

handed down by the SC and the CJEU in this area

and analyses customer complaints on a case-by-

case basis.

Similarly, it maintains a consolidated approach to

agreements and has signed several protocols of

express agreements in Courts and Provincial Courts

specialising in this matter, in order to reach

agreements with its customers and de-judicialise

this matter. The agreements are reached in

accordance with the distribution of expenses

doctrine established by the Spanish High Court.

The average amount linked to claims and lawsuits

has gradually fallen with the gradual consolidation of

the doctrine recognising the attribution of the

expense of the Stamp Duty Tax to the borrower (until

the entry into force of Royal Decree Law 17/2018, of 8

November, which amended the restated text of the

Law on Property Transfer and Stamp Duty Tax).

The existence of an open debate on the scope of

limitation periods sparked, from the third quarter of

2023 and for several months in 2024, a temporary

wave of new claims and lawsuits.

In this specific area, the CJEU handed down three

judgments, one on 25 January 2024 and two on 25

April 2024, which resolved the questions referred for a

preliminary ruling by the Barcelona Provincial Court,

the SC and Barcelona Court of First Instance 20

(joined cases C-810/21, C-811/21, C-812/21, C-813/21,

C-481/21 and C-561/21). The Spanish High Court

interpreted these decisions in accordance with

national law, ruling on 14 June 2024, establishing that

the starting date of the limitation period for the

action for restitution of mortgage expenses unduly

paid by a consumer will be the date on which the

judgment declaring the nullity of the clause obliging

such payments becomes final, except in those cases

where the lender proves that, within the framework

of its contractual relations, that specific consumer

could have known at an earlier date that this

stipulation (expenses clause) was abusive.

At 31 December 2025, the Group had set aside a

provision of 273 million euros for this issue, listed

under “Provisions for procedural matters and

pending tax litigation”. Based on our best estimate

based on the information available to date, we

consider the provisions currently made by the Group

to be sufficient.

LITIGATION RELATED TO CONSUMER LOANS

(REVOLVING CREDIT CARDS)

The Spanish Supreme Court has issued several

rulings on revolving credit between 2020 and 2025. It

has been progressively refining the applicable legal

framework to assess when the interest in this specific

type of financing is significantly higher than the

market price and recently the marketing guidelines

to understand whether or not transparency exists.

This ongoing development of the legal framework

has resulted in a wide variety of legal interpretations,

leading to substantial litigation under conditions of

considerable legal ambiguity for this type of

financing.

Currently the legal framework defined by the

Supreme Court is determined by the following

factors: i) revolving credit cards are a specific

market within credit facilities; ii) the Bank of Spain

publishes a specific reference interest rate for this

product in its Boletín Estadístico, which is the initial

reference for determining what the “normal interest

rate of money” is; iii) the Bank of Spain publishes the

so-called TEDR (Restricted Denomination Cash Rate);

iv) in order to establish whether an interest rate is

"grossly disproportionate", it must be compared

against the Annual Percentage Rate (APR); v) a

contract will be deemed usurious if the interest

exceeds by six percentage points the APR that can

be considered the normal interest rate, which will be

the average interest rate in the credit card and

revolving credit section of the Bank of Spain's

statistics, and if the TEDR is published and not an APR

(as is the case so far), it will have to be increased by

20 or 30 basis points; (vi) with regard to revolving

credit card contracts prior to June 2010, when

determining the “normal interest rate” as a

benchmark, the most recent specific information

from the Bank of Spain statistics (credit card and

revolving credit card section) should be drawn from

the closest point in time; (vii) in cases where an

open-ended financial services contract provides for

the possibility of unilaterally changing the interest

rate of the credit transaction (with prior notification

to the borrower and with the option for the borrower

to terminate the contract and simply pay what is

due at the agreed interest rate), each interest

change will constitute the conclusion of a new

contract fixing a new interest rate.

Specific regulations on APR limits for revolving

and deferred payment following Judgment

258/2023 of the Spanish High Court

On 25 February 2023, the Plenary of the First

Chamber of the Spanish High Court handed down a

ruling (258/2023) that offers greater certainty and

legal certainty in the application of the criteria of the

Usury Repression Act to revolving credit, by

establishing that revolving card interest is “notably

higher” – and therefore usurious – if the difference

between the average market rate (TEDR) and the

agreed rate exceeds 6 percentage points, with an

additional range of 0.20/0.30 additional points to

equate TEDR and APR. This is a criterion that is close

to other standards within the European Union (in

Germany 12 points are applied, in France a margin of

33 %, in Denmark a margin of 35 %, in Sweden a

margin of 40 %).

This new criterion, in addition to providing greater

certainty and legal certainty, places the validity of

drawdowns made at APRs of less than 24-27 %,

depending on the date of the applicable economic

conditions.

ASUFIN class suit

In relation to the collective action filed by ASUFIN

against CaixaBank, and its card-issuing subsidiary,

CaixaBank Payments & Consumer (CPC), the TS has

issued a ruling with a date for voting and ruling on

the appeal on 10 February 2026, completely

dismissing ASUFIN's cassation appeal, appreciating

various reasons for inadmissibility. Consequently, the

ruling of the Provincial Court of Valencia is confirmed,

which had dismissed ASUFIN's appeal and upheld the

appeal filed by CPC, confirming the validity of the

clauses challenged by ASUFIN in its class action

lawsuit.

The process has been reduced to an action of

eventual cessation of general conditions; the

possibility of claiming refunds of amounts (restitution

action) was rejected for the ASUFIN and in favour of

CaixaBank. Later, the ruling reaffirmed this situation,

completely dismissing the claim against CaixaBank

in its entirety and only asks CaixaBank to cease the

early repayment clause, rejecting the other requests

regarding the lack of transparency in the operation

of the cards, the methods of calculating interest, the

right to offset debts or the change of conditions in

open-ended contracts. Following an appeal by both

parties, the 9th Section of the Provincial Court of

Valencia handed down judgment no. 1152/2021 of 3

October 2021, by virtue of which it dismissed ASUFIN's

appeal and upheld CPC's appeal and, consequently,

dismissed the claim in its entirety, partially

overturning the first instance judgment. As described

in the previous paragraph, the TS has confirmed the

ruling of the Provincial Court.

Spanish High Court rulings on transparency

control

On 30 January 2025, the First Chamber of the

Supreme Court published two rulings on revolving

cards - No.s 154 and 155/2025. These decisions

provide guidelines for assessing the transparency of

such products. The contracts analysed involve credit

financial institutions from outside the CaixaBank

Group and where the Supreme Court finds the

marketing of revolving cards outside financial

establishments relevant.

The Spanish High Court addresses two distinct

aspects in each ruling. One ruling focuses on the

requirement of “sufficient notice” for the delivery of

pre-contractual information, specifically within the

document known as European Standardised

Information (ESI). The second judgment is based on

how the revolving system should be explained in the

contract in order for a consumer to be aware of its

nature and consequences.

CaixaBank has been actively enhancing the

transparency of these products over the years and

will review these rulings to further refine its

information and marketing practices, adhering to the

standards set by the Bank of Spain and the Spanish

High Court's doctrine.

Specific monitoring will also be maintained of how

these judicial rulings pan out, as well as of the

applicable legislation — the transposition of Directive

2023/2225 is still pending, introducing clarifying

provisions on what constitutes “sufficient advance

notice” for the delivery of pre-contractual

documentation. Such documentation may be

provided less than one day before the consumer

becomes bound by the credit offer or agreement,

provided a reminder of the right of withdrawal is

issued within the following seven days — in order to

adopt any necessary measures to improve and

protect customers, and to ensure reasonable and

prudent coverage of any potential outflows of

resources that may be deemed likely, where

applicable.

Scenario analysis

The calculation of the Group's potential resource

outflows as a result of claims and complaints is

particularly complex to estimate, considering the

nature and dynamic nature of consumption through

this credit facility.

In this regard, the amount potentially to be paid out

for each contract or drawdown subject, as

applicable, to restitution, depends on the

arrangements actually made by each customer

from the beginning of the contract's life (in some

cases by more than 20 years), the type of credit card

in question (with the possibility of payment at the

end of the month, instalment payment or deferred

payment), the payment method proactively selected

by the customer in case of having different

possibilities for each arrangement made (end of the

month, instalment payment or deferred payment),

the changes in conditions that have been applied

under Article 33 of Royal Decree Law 19/2018, of 23

November, on payment services and other urgent

financial measures, or any other type of agreement

that affects the contract price.

It should also be recalled that the actual legal risk of

the perimeter involved is not based solely on the

thresholds currently set by the Spanish High Court.

The case law also takes into account, whenever it is

subject to proof, the specific circumstances of the

case that may justify departing from these

thresholds (e.g. refinancing cases, behaviour with

previous defaults, etc.).

For all these reasons, and in accordance with IAS

37.92, the Group does not disclose the maximum

amounts that total the contracts with effective

revolving provisions.

To date, the Group has been —and will continue to be

— conducting ongoing monitoring of the risk and

evolution of litigation associated with this specific

kind of financing, as well as establishing a provision

to cover the potential outflow of funds in terms of

financial prudence, according to the best estimate

at any given time. It also adopted a series of

effective measures in the field of contracting and

customer service with a view to improving

transparency, risk prevention and understanding of

customers' concerns. It will continue in this

endeavour, taking into account that the legal

framework now in place provides greater legal

certainty regarding the definition and

implementation of any specific action.

Based on the best information available to date, the

heading “Provisions for procedural matters and

pending tax litigation” includes the estimate of

present obligations that could arise from legal

proceedings, including those relating to revolving

and/or deferred payment cards or, to a lesser extent,

from personal loans at the interest rate subject to

judicial review under these jurisprudential

considerations, the occurrence of which has been

considered probable. In any case, any

disbursements that may ultimately be necessary will

depend on the specific terms of the judgments

which the Group must face, and/or the number of

claims that are brought, among others. Given the

nature of these obligations, the expected timing of

the outflow of financial resources is uncertain, and, in

accordance with the best available information

today, the Group also deems that any liability arising

from these proceedings will not, as a whole, have a

material adverse effect on the Group’s businesses,

financial position or the results of its operations.

At 31 December 2025, the Group had set aside a

provision of 263 million euros for this matter, as

recorded under “Provisions for procedural matters

and pending tax litigation”. Based on our best

estimate based on the information available to date,

we consider the provisions currently made by the

Group to be sufficient.

CORAL HOMES

On 28 June 2018, CaixaBank, S.A., BuildingCenter and

Coral Homes Holdco, S.L.U., a company belonging to

the Lone Star Group, entered into an investment

agreement to establish the terms under which

BuildingCenter and Coral Homes Holdco, S.L.U. would

be, through a newly created company called Coral

Homes, S.L., the owners and managers of the

business comprising a specific set of real estate

assets owned by the Company and 100 % of the

share capital of Servihabitat Servicios Inmobiliarios,

S.L., a company engaged in the provision of real

estate management services. In addition, as part of

the transaction, Servihabitat Servicios Inmobiliarios,

S.L. would continue to service the Group's real estate

assets for a period of 5 years under a new contract

signed on market terms.

The sale entered into with Lone Star contemplated a

representations and warranties clause in relation to,

among other matters, the ownership of the real

estate assets transferred to Coral Homes, S.L. which,

under specific circumstances, could give rise to

claims against the Company until June 2020.

In July 2020, Coral Homes Holdco, S.L.U. brought

arbitration proceedings before the International

Court of Arbitration of the International Chamber of

Commerce in order to unwind the contribution of a

small group of real estate assets included in the

business transferred to Coral Homes, S.L. and to claim

alleged damages.

The deadline for issuing the arbitral award has been

extended to 31 March 2026. No significant equity

impact not already reflected in the financial

statements as at 31 December 2025 is expected.

MAPFRE, PROCEEDINGS AFTER TERMINATION OF

INSURANCE BANKING ALLIANCE WITH BANKIA

There are two proceedings related to the termination

of Mapfre's insurance banking alliance with Bankia.

The first involves an arbitration in which Mapfre and

CaixaBank agreed to submit the issue of whether

CaixaBank was required, under the bancassurance

agreements between Bankia and Mapfre, to pay

Mapfre an additional amount equivalent to 10 % of

the valuations of the life and non-life business as

calculated by the independent expert chosen by

both parties (Oliver Wyman). The arbitration was

concluded in July 2023, with an award that found

that the merger of Bankia and CaixaBank should be

interpreted —according to the contractual provisions

— as a change of control of Bankia and that,

consequently, the price to be paid for the life and

non-life insurance activity should be increased by 120

% (and not 110 %) over the valuation given to these

businesses. This amount (10 %) over and above the

amount that had been paid at the time, with interest

and costs (a total of 52.9 million euros) was paid to

Mapfre after notification of the Award.

The second process comprises a lawsuit filed by

Mapfre against Oliver Wyman and CaixaBank

because the former disagrees with Oliver Wyman's

valuation of the Bankia Vida (BV) shares (life

business). Mapfre requests the Court to declare the

Oliver Wyman's breach of the order received to

conduct the valuation of the BV shares and that this

valuation be replaced by a higher valuation to be

fixed in court, condemning CaixaBank to pay the

difference between the price already paid for 51 % of

the BV shares and the price arising from the new

valuation fixed in court. The claim has been

answered by the co-defendants and, following the

preliminary hearing, the trial has been scheduled to

take place over three sessions: 26 and 29 January

2027 and 1 February 2027. The Group considers that

Oliver Wyman complied with the assignment and

has a strong case against this claim and therefore

no provision has been made.

JUDICIAL PROCEEDINGS RELATING TO THE BANKIA

RIGHTS OFFERING

Claims are currently still being processed, although

in a very small number, requesting both the

cancellation of share purchases in the rights offering

made in 2011 on the occasion of the listing of Bankia

and those relating to subsequent purchases, in

relation to the latter scenario, however, they are

residual claims.

On 19 July 2016, Bankia was notified of a collective

claim filed by ADICAE; the processing of the

proceedings is currently suspended.

In a judgment of 3 June 2021, the Court of Justice of

the European Union resolved a preliminary question

raised by the Spanish High Court, clarifying that in

cases of issuances intended both for retail investors

and to qualified investors, the latter may bring an

action for damages based on inaccuracies of the

prospectus, although the national court will have to

take into account whether such investor had or

should have knowledge of the economic situation of

the issuer of the public offer of subscription of shares

and besides the prospectus. After applying this

criterion in the proceedings that gave rise to this

question, the Spanish High Court considered that, in

the specific case in question, it was not proven

whether the plaintiff had access to information other

than the prospectus, which is why it upheld the claim.

In other judgments handed down later, however, the

Spanish High Court understood that the decision to

subscribe the shares was not based on the

information in the prospectus, and therefore

considered the dismissal of the claims to be justified.

As at 31 December 2025, only residual litigation

remains in connection with civil proceedings relating

to actions arising from the Bankia IPO and

subsequent purchases, covering claims from the

institutional, retail and secondary market tranches.

Based on our best estimate based on the

information available to date, we consider the

provisions currently made by the Group to be

sufficient.

DISMISSAL OF THE INVESTIGATION BY CENTRAL

INVESTIGATING COURT NO. 2 (PRELIMINARY

PROCEEDINGS 16/18) AGAINST CAIXABANK

In January 2026, at the request of the Public

Prosecutor’s Office, the Judge ordered the dismissal

of the proceedings against CaixaBank and the Bank’s

former Head of Regulatory Compliance. The

dismissal decision goes to show the effectiveness of

CaixaBank’s compliance model and the Bank’s

compliance culture as the grounds for closing the

case.

Likewise, during the course of the proceedings, the

cases against five employees were also dismissed.

The proceedings began in April 2018, when the Anti-

Corruption Prosecutor’s Office initiated action

against CaixaBank, the former Head of Compliance

of the Bank and 11 employees in relation to alleged

conduct constituting a money laundering offence,

linked to activity carried out at 10 CaixaBank

branches in Madrid by alleged members of certain

organisations made up of individuals of Chinese

nationality who, according to the authorities, had

defrauded the Public Treasury in the period from 2011

to 2015. With the dismissal of the case, the absence of

criminal liability of the legal entity in respect of the

investigated facts has been clarified.

INVESTIGATION DISMISSED BEFORE CENTRAL

INVESTIGATING COURT NUMBER 6 (PRELIMINARY

PROCEEDINGS 96/17) SEPARATE PART 21. POTENTIAL

SUBSIDIARY CIVIL LIABILITY.

Investigation for alleged bribery and disclosure of

secrets relating to the Cenyt merger. The potential

criminal liability of the legal person was dismissed,

and the Public Prosecutor’s Office sought subsidiary

civil liability from CaixaBank amounting to 3,000

euros. This was strictly a financial and subsidiary

liability, for a non-material amount.

The National Court has recently agreed to exclude

CaixaBank from the trial, following the decision by the

Public Prosecutor's Office to withdraw the civil liability

claim against the Bank, with proceedings continuing

against other defendants. Consequently, the case

has concluded without any repercussions for

CaixaBank.

On 12 May 2025, the Criminal Chamber of the

National High Court handed down a ruling which,

among other matters, acquitted the person

responsible for CaixaBank's Security Department at

the time of the events. That judgment was appealed

and, in December 2025, the Appeals Chamber of the

National Court issued a ruling confirming the

acquittal of CaixaBank’s former Head of Security.

That judgment has been appealed in cassation

before the Supreme Court by the prosecution.

ENVIRONMENTAL LITIGATION

CaixaBank continuously monitors judicial trends in

this regard, as well as any potential litigation or

claims within the Group related to the matter in

question.

As at 31 December 2025, no material litigation risks

had been identified for the Group, and the analysis

and monitoring of litigation in this area continue.

OTHER LEGAL CONTINGENCIES

Moreover, in 2025 the following proceedings, which

had previously been disclosed in this Note, were

concluded definitively and favourably for the

CaixaBank Group:

| the sanctioning proceedings conducted before

the Portuguese Competition Authority in respect

of BPI;

| the criminal proceedings relating to the former

shareholders of Banco de Valencia; and

| the civil proceedings brought by Sareb in

connection with the Senior Bonds issued from

the 2017-3 and 2018-1 issuances onwards.

The final and favourable resolution of these three

matters results in the elimination of any material risk

associated with them; accordingly, they will no

longer be reported on from this financial year

onwards.

20.3.2. PROVISIONS FOR TAXES

The breakdown of the balance of this heading in the

balance sheet is as follows:


_BREAKDOWN OF PROVISIONS FOR TAXES
(Millions of euros)
	31-12-2025	31-12-2024	31-12-2023
Income tax assessments		1	7
Tax on deposits		22	22
Provision for bank levy litigation	167
Other	116	271	270
TOTAL	283	294	299

AUDIT PROCEDURES FOR THE FINANCIAL YEARS

2016-2020

The general tax inspection proceedings for the 2016–

2020 periods affecting the Group were concluded

this year (2025). The Group has signed the inspection

reports relating to corporate income tax, value

added tax, withholdings on employment income,

income from movable and immovable capital and

non-residents, the levy on monetisable DTAs, and the

tax on customer deposits.

Furthermore, tax returns were filed in accordance

with the audit reports, which revealed a tax liability of

46 million euros in value added tax and withholding

taxes on income for personal income tax purposes,

an amount that was already largely covered by the

Group's provisions and has already been paid. No tax

liability arose from the other tax items agreed.

Moreover, assessments relating to value added tax,

corporate income tax and the levy on monetisable

DTAs were issued on a contested basis.

The Value Added Tax settlement agreement was

issued in the current year with a partially favourable

resolution and a tax payable of 0.7 million euros,

which was already covered by the Group’s

provisions. A tax appeal has been lodged and the

corresponding submissions have been filed.

The settlement agreements in respect of corporate

income tax and the levy on monetisable DTAs

confirm the inspection assessments. The Group has

lodged tax appeals and presented the

corresponding submissions, maintaining the

arguments put forward before the Chief Inspector,

which have also been reaffirmed based on the legal

advice received.

In response to this situation, the Group has

recognised the rebate received from the Tax Office

amounting to 266 million euros as an amount

repayable to it under “Other liabilities”, of which 183

million euros relates to the CaixaBank Group.

INSPECTION PROCEEDINGS RELATING TO THE

BANKING SECTOR LEVY

CaixaBank and certain Group entities have posted a

provision of 167 million euros in relation to the tax

debt arising from the initiation of the settlement

agreement for the temporary tax assessment of

credit institutions for 2023 and the subsequent

rectification of the self-assessment for 2024.

OTHER ASSURANCE ACTIVITIES

CaixaBank has received a notification of the

commencement of a limited tax audit in relation to

Value Added Tax for the periods from January 2020

to March 2021 of Bankia, which is currently ongoing.

20.4. PROVISIONS FOR COMMITMENTS AND GUARANTEES GIVEN

Provisions for credit risk on guarantees and contingent commitments granted are recorded under this heading

(Note 2 3).

20.5. OTHER PROVISIONS

The content of the main sections of this heading is

set out below.

THE EXPECTED TIMING OF OUTFLOWS OF FUNDS

EMBODYING ECONOMIC BENEFITS, SHOULD THEY

ARISE, IS UNCERTAIN.

ADICAE filed a collective action for cessation in

relation to the application of floor clauses in certain

mortgages marketed by the bank. The procedure is

currently in the phase of compliance with the

Supreme Court ruling.

By order dated 29 June 2022, the Supreme Court

decided to refer several preliminary questions to the

Court of Justice of the European Union (CJEU), asking

whether, in the context of a collective action of this

complexity, it is possible to assess the transparency

of the marketing of floor clauses in the abstract. In

particular, it was questioned whether such analysis

could be carried out without individually assessing

the circumstances prevailing at the time of

contracting, also taking into account factors such as

the evolution of the concept of the average

consumer.

The CJEU resolved these questions in a judgment

dated 4 July 2024, in which it declared that it is

possible to judge in the abstract the transparency of

the price of a contract in the context of a collective

action. The Supreme Court, in accordance with the

criteria established by the CJEU, handed down its

judgment on 16 June 2025, ruling on the appeals. In

that ruling, the Supreme Court confirmed that it is

legally possible to analyse the transparency of the

price in the contracts concerned collectively and in

the abstract.

The Group does not foresee any changes in the

estimation of the risk associated with these

proceedings, nor does it foresee any material

adverse impact arising from the CJEU ruling.

Subsequently, CaixaBank informed Commercial

Court No. 11 of Madrid of its intention to comply

voluntarily with the judgment, certifying the definitive

cessation of the clauses and expressing its

willingness to reimburse those claimants who are

parties to the proceedings, once ADICAE submits an

updated list of such claimants and insofar as their

entitlement to the payments can be verified.

Based on the information currently available, an

additional 9.3 million euros has been provisioned to

meet such payments and, therefore, the risk arising

from any disbursements that may result from this

litigation is considered to be reasonably covered by

the corresponding provisions.

PROCEDURES OF THE PORTUGUESE RESOLUTION

FUND (PRF)

Resolution of Banco Espírito Santo

In August 2014, the Bank of Portugal carried out a

resolution procedure in respect of Banco Espírito

Santo, SA (BES), transferring its assets to Novo Banco,

SA (Novo Banco). Within the framework of this

transaction, the FRN carried out a capital increase

amounting to 4,900 million euros, thus becoming the

sole shareholder. This capital increase was financed

through loans to the FRN amounting to 4,600 million

euros: 3,900 million euros provided by the Portuguese

State and 700 million euros by financial institutions,

including BPI with 116.2 million euros.

In 2017, the Bank of Portugal sold 75 % of Novo Banco

to Lone Star, with the FRN and the Portuguese State

retaining the remaining 25 % of the share capital.

In 2021, the Portuguese Resolution Fund (FRN) entered

into a credit facility of up to 475 million euros with

Portuguese financial institutions to support the

capital of Novo Banco, SA, to which Banco BPI, SA

contributed 78.9 million euros.

In June 2025, the majority shareholder, Nani Holdings

(Lone Star), agreed to sell its stake to BPCE, with

completion expected in the first half of 2026.

Subsequently, the sale of the remaining 25 % (held by

the FRN and the Portuguese State) was also agreed

on the same terms. This transaction will generate

estimated income of 866 million euros for the FRN, in

addition to the 2024 dividends (30 million euros) and

the 2025 capital reduction (149 million euros).

Resolution of Banco Internacional do Funchal

(Banif)

In December 2015, the Bank of Portugal initiated a

resolution procedure for Banco Internacional do

Funchal (Banif), which culminated in: (i) selling part of

its assets for 150 million euros to Banco Santander

Totta, SA; and (ii) contributing the rest of its assets to

Oitante, SA. The resolution was financed through the

issuance of debt amounting to 746 million euros,

guaranteed by the FRN and the Portuguese State.

Up to the end of 2025, the FRN had recovered 176.2

million euros (equivalent to 36 % of the losses

generated by this resolution). All profits obtained by

the FRN from its 100 % shareholding in Oitante will be

allocated to reducing the losses of 489 million euros

arising from the resolution of Banif.

Effects of the resolution proceedings

Based on the information available as at the

reporting date, the Group does not consider it

necessary to make any special or extraordinary

contributions to finance measures related to Banco

Espírito Santo, SA, Banif or other contingent liabilities

assumed by the FRN.

However, any changes to these proceedings could

have a significant impact on the Group’s financial

statements.

21. Equity

21.1. SHAREHOLDERS’ EQUITY

SHARE CAPITAL

Selected information on the figures and type of share capital figures is presented below:


_INFORMATION ABOUT SHARE CAPITAL
	31-12-2025	31-12-2024	31-12-2023
Number of fully subscribed and paid up shares (units) (1)	7,024,520,689	7,174,937,846	7,502,131,619
Nominal value per share (euros)	1	1	1
Closing price at year-end (euros)	10.445	5.236	3.726
Market cap at year-end, excluding treasury shares (millions of euros) (2)	73,200	37,269	27,450
(1) All shares have been recognised by book entries and provide the same rights.
(2) CaixaBank’s shares are traded on the continuous electronic trading system, forming part of the Ibex-35.

The breakdown of the changes of the balance under this heading is as follows:


_CAPITAL MOVEMENTS
(Millions of euros)
	Number of shares	Date of first listing	Nominal amount
BALANCE AT 31-12-2022	7,502,131,619		7,502
BALANCE AT 31-12-2023	7,502,131,619		7,502
Capital reduction – share buyback programmes SBB II, SBB III and SBB IV	(327,193,773)		(327)
BALANCE AT 31-12-2024	7,174,937,846		7,175
Capital reduction - share buy-back programmes SBB V and SBB VI	(150,417,157)		(150)
BALANCE AT 31-12-2025	7,024,520,689		7,025

The Board of Directors, having obtained the relevant

regulatory clearance, approved a series of share

buy-back programmes to reduce CaixaBank's share

capital by redeeming the shares acquired under the

programme. The characteristics of the various

programmes are as follows:


_SHARE BUYBACK PROGRAMMES
_SHARE BUYBACK PROGRAMMES
Euros / No. of shares
Programme	Start date	Maxi- mum amount (million euros)	Status	No. of shares purchased	% of share capital	No. of shares after Programme	Share capital after Programme	Date of filing with the Companies Registry
SBB II	September 2023	500	Completed	129,404,256	1.72%	7,372,727,363	7,372,727,363	03-05-2024
SBB III	March 2024	500	Completed	104,639,681	1.42%	7,268,087,682	7,268,087,682	13-06-2024
SBB IV	SBB IV	500	Completed	93,149,836	1.28%	7,174,937,846	7,174,937,846	04-12-2024
SBB V	November 2024	500	Completed	89,372,390	1.25%	7,085,565,456	7,085,565,456	13-05-2025
SBB VI	June 2025	500	Completed	61,044,767	0.86%	7,024,520,689	7,024,520,689	05-12-2025
SBB VII	November 2025	500	In progress (1)
(1) As at 31 December 2025, transactions were carried out for a total of 108 million euros, buying back a total of 10,822,959 treasury shares, equivalent to 21.69 % of the maximum monetary amount (21,893,928 shares for 228 million euros, representing 45.58 % of the maximum amount, based on the most recent public information before the preparation of this annual report, as at 19 February 2026).

For the purposes of calculating regulatory capital and in accordance with applicable prudential regulations,

CaixaBank has deducted the maximum monetary amount of the share buyback programmes (ä see Note 4).

CAPITAL AUTHORISATIONS

Section “03 – Corporate governance – Corporate governance – Ownership” of the consolidated Management

Report includes information regarding the authorisations granted at the Annual General Meeting for the Board

of Directors to increase the share capital.

Details of instruments issued under this agreement are presented in Note 19.3.

SHARE PREMIUM

The breakdown of the changes of the balance under

this heading is as follows:


_MOVEMENT OF SHARE PREMIUM
(Millions of euros)
	Carrying amount
BALANCE AT 31-12-2022	13,470
BALANCE AT 31-12-2023	13,470
Capital reduction – share buyback programmes SBB II, SBB III and SBB IV	(1,161)
BALANCE AT 31-12-2024	12,309
Capital reduction - share buy-back programmes SBB V and SBB VI	(846)
BALANCE AT 31-12-2025	11,463

RETAINED EARNINGS, REVALUATION RESERVES AND OTHER RESERVES

The breakdown of the balances of these headings is as follows:


_BREAKDOWN OF RESERVES
(Millions of euros)
		31-12-2025	31-12-2024	31-12-2023
Reserves attributable to the parent company of the CaixaBank Group		20,504	18,143	17,378
	Legal reserve (1)	1,405	1,435	1,500
	Restricted reserves (2)	1,037	887	560
	Unrestricted reserves	7,470	5,417	5,706
	Other consolidation reserves assigned to the Parent	10,592	10,404	9,612
Reserves of fully-consolidated subsidiaries (*)		(5,238)	(5,256)	(5,083)
Reserves of companies accounted for using the equity method		596	592	596
TOTAL		15,862	13,479	12,891
(1) At the end of the financial year 2025, the legal reserve reached the minimum required by the Capital Companies Act.
(2) Mainly through the cancellation of own shares (see “Share capital” section)

OTHER EQUITY INSTRUMENTS

The value of the undelivered shares corresponding

to the variable share-based remuneration

programmes (ä see Note 32) is detailed below:


_BREAKDOWN OF OTHER EQUITY INSTRUMENTS
(Millions of euros)
	31-12-2025	31-12-2024	31-12-2023
Value of shares not delivered	45	42	46

TREASURY SHARES

The breakdown of the changes of the balance under this heading is as follows:


_MOVEMENT OF TREASURY SHARES
(Millions of euros / Number of shares)
	2025			2024			2023
	No. of shares	% Share capital (1)	Cost/ Sales	No. of shares	% Share capital (1)	Cost/ Sales	No. of shares	% Share capital (1)	Cost/ Sales
OPENING BALANCE	57,122,604	0.796 %	299	135,005,666	1.787 %	519	7,676,276	0.090 %	25
Acquisitions	115,859,937		872	255,883,307		1,292	132,847,483		513
Sales (2)	(156,572,433)		(1,026)	(333,766,369)		(1,512)	(5,518,093)		(19)
CLOSING BALANCE	16,410,108	0.234 %	145	57,122,604	0.796 %	299	135,005,666	1.787 %	519
(1) Percentage calculated on the basis of the total number of CaixaBank shares at the end of the respective years.
(2) In 2025, 2024 and 2023, the results of treasury share transactions generated were not significant, being recognised under “Other reserves”.
Note: At 31 December 2025, 2024 and 2023, a total of 274,292, 274,292 and 281,192 VidaCaixa shares, respectively, associated with unit-linked products, were not included; these shares are recognised under “Financial assets not held for trading mandatorily measured at fair value through profit or loss” (ä see Note 11).
Note: as regards the evolution of treasury shares, please refer to the section on Share capital in this Note and Note 6.1.

Additionally, the number of treasury shares accepted as financial guarantees given by the Group and treasury

shares owned by third parties and managed by a Group company were as follows:


_ TREASURY SHARES ACCEPTED AS FINANCIAL GUARANTEES AND OWNED BY THIRD PARTIES
(Millions of shares / Millions of euros)
	Treasury shares accepted as financial guarantees			Treasury shares owned by third parties managed by the Group
	31-12-2025	31-12-2024	31-12-2023	31-12-2025	31-12-2024	31-12-2023
Number of treasury shares	13	13	19	16	13	14
% of share capital	0.188 %	0.187 %	0.249 %	0.226 %	0.184 %	0.182 %
Nominal amount	13	13	19	16	13	14

21.2. ACCUMULATED OTHER COMPREHENSIVE INCOME

Changes under this heading are contained in the statement of recognised income and expenses.

21.3. MINORITY INTERESTS

The following table shows the Group subsidiaries in which certain minority interests held a stake of 10 % or more:


_SUBSIDIARIES WITH NON-CONTROLLING SHAREHOLDERS WITH STAKES GREATER THAN 10 %
(Percentage)
Subsidiary	Minority shareholders	Minority interests
Subsidiary	Minority shareholders	31-12-2025	31-12-2024	31-12-2023
Inversiones Inmobiliarias Teguise Resort	Metrópolis Inmobiliarias y Restauraciones		40 %	40 %
Coia Financiera Naval	Construcciones Navales P. Freire	21 %	21 %	21 %
Arrendadora de Equipamientos Ferroviarios	CAF Investment Projects, S.A.		15 %	15 %
Telefonica Consumer Finance	Telefónica		50 %	50 %
Telefónica Renting	Telefónica	50 %	50 %	50 %

22. Tax position

22.1. TAX CONSOLIDATION

The consolidated tax group for Corporation Tax

includes CaixaBank, as the parent, and subsidiaries

include Spanish companies in the commercial group

that comply with the requirements for inclusion

under regulations, including ”la Caixa” Banking

Foundation and Criteria Caixa. The other companies

in the commercial group file taxes in accordance

with applicable tax legislation.

Similarly, CaixaBank and some of its subsidiaries

have belonged to a consolidated tax group for value

added tax (VAT) since 2008, the parent company of

which is CaixaBank.

22.2. YEARS OPEN FOR REVIEW

CaixaBank has 2021 and subsequent years open for

review for Corporation Tax and the last four years for

other taxes applicable to it. The audit and verification

proceedings in respect of the 2016 to 2020 financial

years were completed in 2025 (ä see Note 20.3.2).

BPI has open tax years 2023 and onwards for the

main taxes applicable to it.

The various interpretations that can be drawn from

the tax regulations governing transactions carried

out by financial institutions may give rise to certain

contingent tax liabilities that cannot be objectively

quantified. The Group’s management considers that

the provision under “Provisions – Procedural matters

and pending tax litigation” in the balance sheet is

sufficient to cover these contingent liabilities.

22.3. RECONCILIATION OF ACCOUNTING PROFIT TO TAXABLE

PROFIT

The Group's reconciliation of accounting profit to taxable profit is presented below:


_RECONCILIATION OF ACCOUNTING PROFIT TO TAXABLE PROFIT
(Millions of euros)
		2025	2024	2023
PROFIT/(LOSS) BEFORE TAX (A)		8,674	8,319	6,924
Adjustments to profit/(loss)		(342)	(354)	(435)
	Return on equity instruments (1)	(54)	(93)	(154)
	Share of profit/(loss) of entities accounted for using the equity method (1)	(288)	(261)	(281)
Taxable income/(tax loss)		8,332	7,965	6,489
Tax payable (taxable income * tax rate)		(2,500)	(2,390)	(1,947)
Adjustments		327	(120)	(161)
	Changes in taxation of sales and gains/(losses) of portfolio assets	10	19	(6)
	Changes in portfolio provisions excluding tax effect and other non-deductible expenses	(17)	(7)	(14)
	Change in deferred tax assets and liabilities	1	5	10
	Recognition of deferred tax assets and liabilities			2
	Effect on tax expense of jurisdictions with different tax rates (2)	(10)	(4)	(4)
	Tax effect of issues	89	86	83
	Levy on banks and similar activities		(155)	(120)
	Provision for bank levy litigation	(48)
	Recognition of tax loss carryforwards and deductions	420
	Other non-deductible expenses	(79)	(60)	(84)
	Taxation of dividends and other	(39)	(4)	(28)
Income tax expense (B)		(2,164)	(2,525)	(2,108)
	Income tax for the year (income/(expense))	(2,173)	(2,509)	(2,107)
	Income tax adjustments	9	(16)	(1)
Tax on net interest income and fee and commission income (C) (Note 22.5)		(611)
INCOME TAX EXPENSE: D= (B) + (C)		(2,775)	(2,525)	(2,108)
PROFIT/(LOSS) AFTER TAX (A) + (D)		5,899	5,794	4,816
	Tax rate (3)	33.4%	31.5%	32.5%
(1) Income to a large extent exempt from tax due to already having been taxed at source.
(2) Practically all of CaixaBank’s income and expense is taxed at the general Corporation Tax rate of 30 % in the case of the businesses in Spain, however other jurisdictions are taxed at a different tax rate with a very low impact.
(3) The effective tax rate is calculated as the ratio between the income tax expense for the year, excluding corporate income tax adjustments, and profit before tax.

22.4. DEFERRED TAX ASSETS AND LIABILITIES

The changes in the balance of these headings are as follows:


_MOVEMENT OF DEFERRED TAX ASSETS
(Millions of euros)
	31-12-2022	Regulari- sations **	Additions	Disposals	31-12-2023	Regulari- sations **	Additions	Disposals	31-12-2024	Regulari- sations **	Additions	Disposals	31-12-2025
Contributions to pension plans and funds for pre-retirement liabilities	873	12		(25)	860	14		(38)	836	(41)		(39)	756
Credit loss provisions	9,248	121		(275)	9,094	(791)		(362)	7,941	47		(374)	7,614
Provision for foreclosed property	2,641	31		(78)	2,594	1		(110)	2,485	95		(121)	2,459
Other temporary differences *	2,826	(134)	46	(434)	2,304	94	132	(440)	2,090	(62)	297	(230)	2,095
Unused tax credits	739	5		(426)	318	296	30	(303)	341	(59)	196	(309)	169
Tax loss carryforwards	1,977	23		(216)	1,784	(24)	62	(291)	1,531	(81)	224	(495)	1,179
TOTAL	18,304	58	46	(1,454)	16,954	(410)	224	(1,544)	15,224	(101)	717	(1,568)	14,272
Of which: monetisable	12,762	164		(378)	12,548	(776)		(510)	11,262	101		(534)	10,829
(*) Includes, inter alia, eliminations from intra-group transactions and those corresponding to different provisions, and other adjustments due to differences between accounting and tax rules.
(**) Includes the change in deferred tax assets corresponding to the annual corporate tax settlement.


_MOVEMENT OF DEFERRED TAX LIABILITIES
(Millions of euros)
	31-12-2022	Regulari- sations	Additions	Disposals	31-12-2023	Regulari- sations	Additions	Disposals	31-12-2024	Regulari- sations	Additions	Disposals	31-12-2025
Revaluation of property on first time adoption of IFRS	289			(28)	261			(12)	249			(13)	236
Intangible assets from business combinations	214		11	(15)	210			(33)	177			(27)	150
Others from business combinations	181			(57)	124	(1)		(46)	77			(48)	29
Other *	796		8	(53)	751	(1)	4	(191)	563	(1)	4	(76)	490
TOTAL	1,480		19	(153)	1,346	(2)	4	(282)	1,066	(1)	4	(164)	905
(*) Includes, inter alia, eliminations from intra-group transactions and those corresponding to different provisions, and other adjustments due to differences between accounting and tax rules.

Twice per year, in collaboration with an independent

expert, the Group assesses the recoverable amount

of its recognised deferred tax assets in the balance

sheet, on the basis of a budget consisting in a six-

year horizon with the forecasted results used to

estimate the recoverable value of the banking CGU

and forecast, subsequently, applying a sustainable

net interest income (NII) to the average total assets

and a normalised cost of risk (CoR) of 1.51 % and 0.40

%, respectively.

At 31 December 2025, the Group had total deferred

tax assets of 2,777 million euros relating to

unrecognised tax credits, of which 2,636 million euros

related to tax loss carryforwards and 141 million euros

to tax deductions.

These amounts include the recognition, during 2025,

of tax loss carryforwards and deductions amounting

to 420 million euros, of which 35 million euros arose

from the final adjustment of income tax for the

previous year and 385 million euros from their being

considered recoverable, following an improved set of

projections and results obtained from the

assessment exercise carried out.

The maximum recoverability period for tax assets

recognised on the balance sheet as a whole is less

than 10 years.

The Group conducts sensitivity analyses on the key

assumptions used to project the cash flows of the

recoverability model, with no significant variations

arising over the aforementioned period.

The exercises to assess the recoverability of tax

assets, which have been carried out since 2014, are

reinforced by the backtesting exercises, which show

a stable performance.

In light of the existing risk factors (ä see Note 3) and

the reduced deviation with respect to the estimates

used to draw up the budgets, the directors consider

that, despite the limitations for applying different

monetisable timing differences, tax loss

carryforwards and unused tax credits, the recovery

of all activated tax credits is still probable with future

tax benefits.

The type of deferred tax assets segregated by

jurisdiction of origin are set out below:


_NATURE OF DEFERRED TAX ASSETS RECOGNISED ON THE BALANCE SHEET 31-12-2025
(Millions of euros)
	Temporary differences	Of which: Monetisable *	Tax loss carryforwards	Unused tax credits
Spain	12,854	10,805	1,179	169
Portugal	70	24
TOTAL	12,924	10,829	1,179	169
(*) Correspond to monetisable temporary differences eligible for conversion into a claim on the tax authorities.

22.5. OTHER

TAX ON NET INTEREST INCOME AND FEE

AND COMMISSION INCOME

The Group has paid 580 million euros in respect of

the Interest and Fee Margin Tax (IMIC) for the 2024

tax period.

The IMIC for the 2024 tax period was scheduled to

accrue on 31 January 2025 in accordance with Royal

Decree-Law 9/2024. However, this accrual was

rendered legally ineffective on 23 January 2025 when

the aforementioned Royal Decree-Law was repealed

on that date. Therefore, in accordance with the legal

counsel received, it must be considered that such

accrual did not take place.

In view of this situation, the Group has made the

aforementioned payment for the 2024 tax period

and has recognised it on the assets side of the

balance sheet under “Financial assets at amortised

cost”, as it is expected to be recovered once the

accrual issue is definitively determined by legislation

or court order.

Additionally, and in accordance with prevailing law

and regulations, the Group recognised the IMIC for

the 2025 tax period under “Income tax expense or

income from continuing operations” in the

consolidated statement of profit or loss, for a total

amount of 611 million euros.

PILLAR 2

Law 7/2024 transposes the Pillar 2 Directive,

establishing a supplementary tax aimed at ensuring

a minimum global level of taxation for multinational

and large national groups.

Following the approval of the Directive, the Group

embarked upon a dedicated project to assess the

impact and implementation of this reform, which has

no significant impact on the Group.

The Group has applied the temporary and

mandatory exception to the requirements to

recognise and disclose deferred tax assets and

liabilities relating to income taxes.

BANKING SECTOR LEVY

In accordance with Law 38/2022 of 28 December, to

establish, inter alia, temporary levies on the banking

sector of 4.8 % on net interest income and net fee

and commission income, CaixaBank and certain

Group companies recognised, as at 1 January 2024, a

total of 493 million euros under “Other operating

expenses” in statement of profit or loss.

23. Guarantees and contingent

commitments

The breakdown of “Guarantees and contingent commitments given” included as memorandum items on the

balance sheets is set out below:


_BREAKDOWN OF COLLATERAL AND CONTINGENT LIABILITIES
(Millions of euros)
	31-12-2025		31-12-2024		31-12-2023
	Exposure	Provision	Exposure	Provision	Exposure	Provision
Financial guarantees given	9,305	(125)	9,769	(112)	10,319	(135)
Stage 1	8,693	(2)	9,074	(6)	9,202	(7)
Stage 2	452	(18)	498	(5)	986	(11)
Stage 3	160	(105)	197	(101)	131	(117)
Loan commitments given	127,411	(118)	121,479	(98)	117,169	(119)
Stage 1	123,554	(79)	118,242	(67)	113,178	(78)
Stage 2	3,547	(18)	2,873	(13)	3,584	(13)
Stage 3	310	(21)	364	(18)	407	(28)
Other commitments given	38,396	(174)	36,022	(212)	32,097	(192)
Stage 1	36,562	(29)	34,086	(15)	29,884	(17)
Stage 2	1,521	(35)	1,600	(37)	1,874	(55)
Stage 3	313	(110)	336	(160)	339	(120)

The Group need only pay the amount of contingent

liabilities if the guaranteed counterparty breaches its

obligations. It believes that most of these risks will

expire without being called.

With respect to contingent liabilities, it is estimated

that a significant portion will expire before being

utilised and therefore cannot be considered as a

future funding requirement for the Group.

The provisions relating to contingent liabilities and

commitments are recognised under “Provisions” in

the accompanying consolidated balance sheet (ä

see Note 20).

The heading “Loan commitments given” breaks down

as follows:


_BREAKDOWN OF LOAN COMMITMENTS GIVEN
(Millions of euros)
	31-12-2025	31-12-2024	31-12-2023
Credit institutions	1,068	1,431	831
General governments	6,076	5,397	5,422
Other sectors	120,267	114,651	110,916
TOTAL	127,411	121,479	117,169
Of which: conditionally drawable	7,962	5,588	5,463

Contingent liabilities linked to deposit for

irrevocable payment commitments (IPCs) of

the SRF

Since 2016, the Group's banking companies have

opted to realise a percentage of the annual

contribution payment to the Single Resolution Fund in

the form of irrevocable payment commitments

(IPCs), for which cash collateral has been provided.

As at 31 December 2025, the cumulative amount of

IPCs totalled 240 million euros (recognised under

“Other commitments given”), with no provisions

recorded.

The CPIs of the Single Resolution Fund are deducted

from CET1.

24. Other significant disclosures

24.1. TRANSACTIONS FOR THE ACCOUNT OF THIRD PARTIES

The breakdown of off-balance sheet funds managed on behalf of third parties is as follows:


_BREAKDOWN OF TRANSACTIONS ON BEHALF OF THIRD PARTIES
(Millions of euros)
		31-12-2025	31-12-2024	31-12-2023
Off-balance sheet customer funds		669,555	605,911	547,003
Assets under management		202,860	182,946	160,827
	Mutual funds, portfolios and SICAVs	150,947	133,102	114,821
	Pension funds	51,913	49,844	46,006
Other *		4,450	6,534	6,179
Financial instruments held in trusteeship for third parties		259,385	233,485	219,170
(*) Includes temporary funds associated with transfers and collections, in addition to other funds distributed by CaixaBank and Banco BPI.

24.2. FINANCIAL ASSETS TRANSFERRED

The Group converted a portion of their homogeneous loan and credits into fixed-income securities by

transferring the assets to various securitisation special purpose vehicles set up for this purpose.

The balances relating to the transfer of assets are presented below:


_BREAKDOWN OF BALANCES RELATING TO ASSET TRANSFERS
(Millions of euros)
		31-12-2025	31-12-2024	31-12-2023
Securitised assets held on-balance sheet *		24,374	23,079	27,640
Securitised mortgage loans		11,617	15,296	19,046
Other securitised loans		4,849	4,932	7,199
	Loans to corporates	1,821	2,847	4,303
	Leasing arrangements		181	263
	Consumer financing	2,957	1,771	2,435
	Other	71	133	198
Synthetic securitisation transactions		7,908	2,851	1,395
Repo securitisation bonds		15,406	19,907	25,405
Credit enhancements		1,564	1,970	2,684
(*) The outstanding amounts of securitisations derecognised from the balance sheet are not material.

The securitised loans retained on the balance sheet and the credit enhancements are recognised under

“Financial assets at amortised cost”, while the securitisation bonds placed on the market are recognised under

“Financial liabilities at amortised cost – Debt securities issued” in the balance sheet.

24.3. FINANCIAL ASSETS DERECOGNISED DUE TO IMPAIRMENT

A summary of the movements in the items removed from the balance sheet because their recovery is

considered remote is shown below. These financial assets are recognised under “Suspended assets” in the

memorandum accounts supplementing the balance sheet:


_CHANGES IN WRITTEN-OFF ASSETS
(Millions of euros)
		2025	2024	2023
OPENING BALANCE		18,937	18,053	18,276
Additions		1,531	1,711	2,052
Disposals		958	827	2,275
	For cash recovery of principal (Note 34)	228	262	249
	Disposal of written-off assets **	412	449	782
	Due to expiry of the statute-of-limitations period, forgiveness or any other cause	318	116	1,244
CLOSING BALANCE		19,510	18,937	18,053
Of which: interest accrued on the non-performing loans *		7,187	6,639	6,331
(*) Primarily includes interest on financial assets at the time of derecognition from the consolidated balance sheet.
(**) Corresponds to the sale of non-performing and written-off assets and includes interest related to these portfolios.

25. Interest income

The breakdown of this item in the accompanying statement of profit or loss is as follows:


_BREAKDOWN OF INTEREST INCOME
(Millions of euros)
		2025		2024		2023
		Banking and other business	Insurance activity	Banking and other business	Insurance activity	Banking and other business	Insurance activity
Central banks		991		1,723		1,410
Credit institutions		714		664	1	403
Debt securities		1,397	2,077	1,317	1,943	1,211	1,729
	Financial assets held for trading	19		25		13
	Financial assets compulsorily measured at fair value through profit or loss						1
	Financial assets at fair value through other comprehensive income	259	1,947	160	1,817	186	1,641
	Financial assets at amortised cost	1,119	130	1,132	126	1,012	87
Loans and advances to customers and other financial income		13,211		15,421		13,535
	General governments	436		549		516
	Trade credits and bills	696		858		760
	Mortgage loans	5,373		6,696		5,809
	Loans secured by personal guarantee	6,134		6,520		5,730
	Other	572		798		720
Adjustments to income due to hedging transactions		(195)	(175)	(143)	(30)	(79)
Interest income – liabilities		1		1		14
TOTAL		16,119	1,902	18,983	1,914	16,494	1,729
Of which: interest on exposures in stage 3		328		371		311

The average effective interest rate of the various financial assets categories calculated on average net

balances (excluding rectifications) is as follows:


_AVERAGE RETURN ON ASSETS
(Percentage)
		2025	2024	2023
Deposits at central banks		2.06 %	3.43 %	3.37 %
Financial assets held for trading – debt securities		2.35 %	3.29 %	2.74 %
Financial assets compulsorily measured at fair value through profit or loss - Debt securities				6.64 %
Financial assets at fair value through comprehensive income / Available-for-sale financial assets – Debt securities		2.53 %	2.17 %	1.82 %
Financial assets at amortised cost
	Loans and advances to credit institutions	3.36 %	4.13 %	3.28 %
	Loans and advances to customers	3.75 %	4.53 %	3.92 %
	Debt securities	1.39 %	1.5 %	1.29 %

26. Interest expense

The breakdown of this item in the accompanying statement of profit or loss is as follows:


_BREAKDOWN OF INTEREST EXPENSES
(Millions of euros)
	2025	2024	2023
Central banks	(4)	(15)	(411)
Credit institutions	(530)	(930)	(1,435)
Money market transactions through counterparties	(1)	(11)	(19)
Customer deposits and other finance costs	(2,815)	(3,657)	(1,683)
Debt securities issued (1)	(1,479)	(1,432)	(1,063)
Adjustments to expenses as a consequence of hedging transactions	(665)	(1,983)	(1,857)
Asset interest expense	(1)	(21)	(22)
Interest on lease liabilities (Note 19.4)	(17)	(18)	(15)
Other	(69)	(18)	(13)
TOTAL BANKING AND OTHER BUSINESS	(5,581)	(8,085)	(6,518)
Finance expense from insurance contracts (2)	(1,756)	(1,692)	(1,582)
Other interest expenses	(13)	(12)	(10)
TOTAL INSURANCE ACTIVITY	(1,769)	(1,704)	(1,592)
TOTAL	(7,350)	(9,789)	(8,110)
(1) Excluding interest from preference shares accountable as Additional Tier 1 capital (recognised in shareholders’ equity).
(2) Interest accrual expenses do not include those corresponding to direct participation products, which amount to -1,830 million, -2,425 million and 1,968 million euros in 2025, 2024 and 2023 respectively, given that they are offset by income of the same nature. In these products, upon redemption, the policyholder receives the market value of the underlying assets, and there is no interest rate guarantee. Note 14 shows this interest accretion for the gross amount without offsetting.

The average effective interest rate of the various financial liabilities categories calculated on average net

balances (excluding rectifications) is set out below:


_AVERAGE RETURN ON LIABILITIES
(Percentage)
	2025	2024	2023
Deposits from central banks	4.21 %	5.38 %	3.29 %
Deposits from credit institutions	2.77 %	3.85 %	3.47 %
Customer deposits	0.64 %	0.90 %	0.44 %
Debt securities issued (excluding subordinated liabilities)	2.88 %	2.58 %	1.99 %
Subordinated liabilities	2.61 %	2.34 %	1.87 %

27. Dividend income

The breakdown of this item in the accompanying statement of profit or loss is as follows:


_DIVIDEND INCOME
(Millions of euros)
	2025	2024	2023
Telefónica (Note 11.1)		43	61
Banco Fomento de Angola	50	45	73
Other	11	12	29
TOTAL	61	100	163

28. Fee and commission income

The breakdown of this item in the accompanying statement of profit or loss is as follows:


_BREAKDOWN OF FEE AND COMMISSION INCOME
(Millions of euros)
		2025	2024	2023
Contingent liabilities		270	256	250
Credit facility drawdowns		153	151	133
Exchange of foreign currencies and banknotes		170	168	164
Collection and payment services		1,066	1,173	1,253
	Of which: credit and debit cards	542	591	611
Securities services		184	149	126
Marketing of non-banking financial products		1,837	1,678	1,555
Other fees and commissions		733	624	556
TOTAL		4,413	4,199	4,037


_BREAKDOWN OF FEE AND COMMISSION EXPENSE
(Millions of euros)
		2025	2024	2023
Assigned to other entities		(164)	(156)	(141)
	Of which: transactions with cards and ATMs	(123)	(123)	(118)
Securities transactions		(33)	(28)	(28)
Other fees and commissions		(249)	(237)	(210)
TOTAL		(446)	(421)	(379)

29. Gains/(losses) on financial

assets and liabilities

The breakdown of this item in the accompanying statement of profit or loss is as follows:


_BREAKDOWN OF GAINS OR LOSSES ON FINANCIAL ASSETS AND LIABILITIES
(Millions of euros)
			2025		2024		2023
			Banking and other business	Insurance activity (Note 14)	Banking and other business	Insurance activity (Note 14)	Banking and other business	Insurance activity (Note 14)
On derecognition of financial assets and liabilities not measured at fair value through profit or loss			29	12	76	10	96	(2)
	Financial assets at amortised cost		13		44		3
		Debt securities	10		28		3
		Loans and advances	3		16
	Financial liabilities at amortised cost		6		20		100
	Financial assets at fair value through other comprehensive income		10	12	12	10	(7)	(2)
		Debt securities (Note 11)	10	12	12	10	(7)	(2)
On financial assets and liabilities held for trading			292		(8)		(42)
	Equity instruments		245		69		108
	Debt securities		4		9		11
	Financial derivatives *		43		(86)		(161)
For non-trading financial assets mandatorily measured at fair value through profit or loss				3	1	2	19	5
	Equity instruments		(5)	3	1	2	3	5
	Debt securities		5
	Loans and advances						16
Hedge accounting results			3	31	(36)	41	(44)	74
	Ineffective portions of fair value hedges		3	31	(36)	41	(44)	74
		Valuation of hedging derivatives (Note 12)	(3)	162	1,084	(49)	1,916	(168)
		Valuation of the items covered (Note 12)	6	(131)	(1,120)	90	(1,960)	242
TOTAL			324	46	33	53	29	77
(*) The net profit/(loss) linked to financial derivatives should be considered together with the profit/(loss) recorded under “Exchange differences (net)” in the statement of profit or loss since the Group manages the currency risk to which it is exposed by arranging financial derivatives, which partially hedge the currency exposure of foreign currency monetary items and the results generated on the purchase and sale of foreign currencies, the result of which is reported under the latter heading. The rest comprises primarily the margin for trading derivatives to customers and the change in valuation adjustments for credit risk (CVA/DVA) and funding (FVA) ( ä see Note 35).

30. Other operating income and

expense

The breakdown of this item in the accompanying statement of profit or loss is as follows:


_BREAKDOWN OF OTHER OPERATING INCOME
(Millions of euros)
	2025	2024	2023
Income from investment property and other income	89	84	91
Sales and income from provision of non-financial services	175	258	339
Other income	253	182	161
TOTAL	517	524	591


_BREAKDOWN OF OTHER OPERATING EXPENSE
(Millions of euros)
	2025	2024	2023
Contribution to the Deposit Guarantee Fund * / Single Resolution Fund **.	(19)	(13)	(627)
Operating expenses from real estate investments and other	(97)	(96)	(152)
Changes in inventories and other expenses of non-financial activities	(121)	(193)	(270)
Expenses associated with regulators and supervisors	(27)	(21)	(25)
Equity provision associated with monetisable DTAs	(96)	(109)	(130)
Banking sector levy (Note 22)		(493)	(373)
Other items	(420)	(412)	(351)
TOTAL	(780)	(1,337)	(1,928)
(*) Deposit Guarantee Fund: With the payment by the member institutions of the ordinary contributions for 2023, the minimum target level of 0.8 % required under European deposit guarantee scheme legislation was reached, with some advance and a comfortable margin; this level was required to be attained no later than 3 July 2024. For this reason, the Management Committee of the Credit Institutions Deposit Guarantee Fund agreed not to request the annual contribution to the deposit guarantee compartment from 2024 onward. From that date onwards, only the annual contribution to the securities compartment will be made.
(**) Single Resolution Fund: Law 11/2015 and Royal Decree 1012/2015 established the requirements that banks would make at least one annual contribution to the National Resolution Fund (NRF) in addition to the annual contribution that will be made to the Deposits Guarantee Fund (DGF) by member institutions. For the SRF, a minimum fundraising target equivalent to 1 % of the covered deposits of credit institutions has been set to be reached by 31 December 2023 (i.e. at the end of the initial eight-year period starting on 1 January 2016). On 15 February 2024, the Single Resolution Board (SRB) reported that, with the financial resources available in the Single Resolution Fund (SRF) as at 31 December 2023, the target level of 1% of covered deposits of the participating Member States had already been reached. Future contributions will depend on the results of the SRB’s annual assurance exercise.

31. Insurance service result

A breakdown of this item in the accompanying statement of profit or loss is shown below:


_RECONCILIATION OF INSURANCE SERVICE INCOME AND EXPENSES
(Millions of euros)
	2025				2024				2023
	Risk	Savings	Direct interest	Total	Risk	Savings	Direct interest	Total	Risk	Savings	Direct interest	Total
Contracts not measured under PAA	621	1,174	296	2,091	568	1,187	265	2,020	520	1,449	242	2,211
Amounts related to changes in the liability for the remaining coverage	621	1,174	296	2,091	568	1,187	265	2,020	520	1,449	242	2,211
Expected claims and other attributable expected insurance expenses	391	766	183	1,340	380	784	141	1,305	359	1,110	132	1,601
Changes in risk adjustment for non- financial risk	14	79	35	128	30	45	27	102	31	41	20	92
CSM recognised in PL for services rendered	216	329	78	623	158	358	97	613	130	298	90	518
Contracts measured under PAA - Amounts related to changes in liability for remaining coverage	1,171			1,171	1,033			1,033	952	1		953
TOTAL INSURANCE SERVICE INCOME (Note 14)	1,792	1,174	296	3,262	1,601	1,187	265	3,053	1,472	1,450	242	3,164
Incurred claims and other directly attributable expenses	(914)	(717)	(129)	(1,760)	(821)	(841)	(131)	(1,793)	(745)	(1,254)	(107)	(2,106)
Changes related to past service - Adjustments to liability for claims incurred	(96)	(64)	(22)	(182)	(46)	42	(16)	(20)	(36)	73	(11)	26
Changes related to future services - losses and loss reversals on onerous contracts		(2)	2	0	1	(8)	7	0	10	52	(2)	60
TOTAL INSURANCE SERVICE EXPENSES (Note 14)	(1,010)	(783)	(149)	(1,942)	(866)	(807)	(140)	(1,813)	(771)	(1,129)	(120)	(2,020)
INSURANCE SERVICE RESULT	782	391	147	1,320	735	380	125	1,240	701	321	122	1,144

Expenses directly attributable to insurance contracts are recognised under “Insurance service expenses”. The

breakdown of these expenses, if recognised on the basis of their nature, is as follows:


_RECONCILIATION OF EXPENSES DIRECTLY ATTRIBUTABLE TO INSURANCE CONTRACTS BY NATURE
(Millions of euros)
	2025	2024	2023
Fee and commission income	52	53	47
Personnel expenses	457	406	369
Other administrative expenses	212	176	169
Depreciation and amortisation	81	70	61
TOTAL	802	705	646

32. Personnel expenses

The breakdown of this item in the accompanying

statement of profit or loss is as follows:


_BREAKDOWN OF PERSONNEL EXPENSES
(Millions of euros)
	2025	2024	2023
Wages and salaries	(2,711)	(2,607)	(2,413)
Social security contributions	(797)	(735)	(686)
Contributions to pension plans (saving and risk) *	(212)	(187)	(191)
Other personnel expenses	(252)	(247)	(226)
TOTAL	(3,972)	(3,776)	(3,516)
(*) Includes premiums paid

The expense recognised in "Contributions to defined

pension plans" includes mainly mandatory

contributions stipulated which are made to cover

retirement, disability and death obligations of serving

employees.

“Other personnel expenses” includes, inter alia,

training expenses, education grants and indemnities

and other short term benefits. This heading also

records the cost of the capital-instrument-based

remuneration plans, recorded with a balancing entry

under 'Shareholders' equity — Other equity items' of

the accompanying balance sheet, net of the

corresponding tax effect.

Share-based remuneration plans are specified in the

Annual Corporate Governance Report –

Remuneration.

The average number of employees, by professional

category and gender, is set out below:


_AVERAGE NUMBER OF EMPLOYEES *
(Number of employees)
	2025			2024			2023
	Male	Female	Of which: with a disability ≥ 33 %	Male	Female	Of which: with a disability ≥ 33 %	Male	Female	Of which: with a disability ≥ 33 %
Executives	3,259	2,316	41	3,196	2,220	42	3,270	2,205	35
Middle management	4,193	4,448	74	4,156	4,339	70	3,985	4,175	67
Managers	13,198	19,216	564	12,513	18,999	538	12,215	18,859	491
TOTAL	20,650	25,980	679	19,865	25,558	650	19,470	25,239	593
(*) The distribution, by occupational category and gender, at any given time is not significantly different from that of the average number of employees.

33. Other administrative

expenses

The breakdown of this item in the accompanying statement of profit or loss is as follows:


_BREAKDOWN OF OTHER ADMINISTRATIVE EXPENSES
(Millions of euros)
	2025	2024	2023
IT and systems	(621)	(566)	(544)
Advertising and publicity *	(195)	(170)	(156)
Property and fixtures	(122)	(120)	(134)
Rent **	(19)	(15)	(17)
Communications	(77)	(78)	(73)
Outsourced administrative services	(126)	(61)	(110)
Tax contributions	(35)	(32)	(61)
Surveillance and security carriage services	(45)	(48)	(48)
Representation and travel expenses	(72)	(67)	(66)
Printing and office materials	(10)	(11)	(13)
Technical reports	(91)	(88)	(79)
Legal and judicial	(23)	(14)	(11)
Governing and control bodies	(10)	(8)	(7)
Other expenses	(206)	(276)	(212)
TOTAL	(1,652)	(1,554)	(1,531)
(*) Includes advertising in media, sponsorships, promotions and other commercial expenses.
(**) The short-term amount of rental expenses in which IFRS 16 has not been applied is immaterial.

INFORMATION ON THE AVERAGE PAYMENT PERIOD TO SUPPLIERS

The following tables provide a breakdown of the required information relating to payments made and pending

at the balance sheet date in Spain:


_PAYMENTS MADE AND OUTSTANDING AT THE REPORTING DATE
(Million euros)/Number of invoices
	2025				2024				2023
	Amount	%	Number of invoices	%	Amount	%	Number of invoices	%	Amount	%	Number of invoices	%
Total payments made	3,631		1,493,372		3,260		1,334,986		3,366		1,238,560
Of which: paid within the legal period (1)	3,396	93.5%	1,433,816	96.0%	3,038	93.2%	1,284,057	96.2%	2,906	86.3%	1,186,609	95.8%
Total payments pending	96		13,191		64		19,242		37		6,977
TOTAL	3,727		1,506,563		3,324		1,354,228		3,403		1,245,537
(1) In accordance with the Second Transitional Provision of Act 15/2010 of 5 July, covering measures to combat non-performing assets in commercial transactions, by default, the maximum statutory period for payments between companies is 30 calendar days, which may be extended to 60 calendar days, provided that both parties agree.


_AVERAGE PAYMENT PERIOD AND PAYMENT RATIOS TO SUPPLIERS
(Day)
	2025	2024	2023
Average payment period to suppliers	12.7	12.6	16.0
Ratio of transactions paid	12.5	12.4	16.0
Ratio of transactions pending payment	23.5	18.6	16.7

EXTERNAL AUDITOR/ASSURANCE PROVIDER FEES

The heading “Technical reports” shows the fees accrued for services rendered by the auditor/assurance

provider, excluding the corresponding VAT, as detailed below:


_BREAKDOWN OF EXTERNAL AUDITOR/ASSURANCE PROVIDER FEES (1)
(Thousands of euros)
				2025	2024	2023
Group auditor / assurance provider (PwC) (2)
	Audit – Assurance			6,862	6,861	6,424
		Audit of financial statements		6,862	6,861	6,424
		Assurance of sustainability status (3)		0	0	0
	Review services other than audit/assurance			2,759	3,104	3,039
		Review services prescribed by statutory or supervisory regulation		1,448	1,490	1,843
			Limited review	573	559	969
			Customer asset protection reports	157	152	147
			Review of forms of indicators to calculate the contribution to the SRF/SRB	9	41	37
			Report on the financial status and capital adequacy of insurance companies	444	430	412
			Report on agreed procedures involving impairment of BPI credit portfolio	152	142	131
			Other agreed-upon procedures reports	113	166	147
		Other review services		1,311	1,614	1,196
			Comfort letters for issues	584	463	654
			Non-Financial Reporting Review Report (NFRD) (3)	555	525	237
			Report on the System of Internal Control over Financial Reporting	27	26	25
			Sustainability metric assurance reports	113	430	118
			Other assurance services	32	170	162
	Other services			70	25	342
Other auditors - (Grant Thornton)
	Audit – Assurance			250	235
		Audit of financial statements		250	235
	Review services other than audit/assurance			50	50
		Review services prescribed by statutory or supervisory regulation		50	50
			Limited review	50	50
	Other services			35	34
TOTAL				10,026	10,309	9,805
(1) The services arranged with our auditors comply with the Spanish Auditing Act's requirements of independence, and none of the tax consultancy work or other performed is incompatible with auditing duties.
(2) CaixaBank's separate and consolidated financial statements for 2023, 2024 and 2025 were audited by PricewaterhouseCoopers Auditores, S.L., with registered address at Paseo de la Castellana 259 B, Torre PWC, 28046 Madrid. The financial statements have been filed in the corresponding public registers of the CNMV. The GSM on 6 April 2017, approved the appointment of the external auditor for the years 2018 to 2020, following Regulation 537/2014. This appointment was extended to include 2024 and 2025 at the meetings on 31 March 2023, and 22 March 2024, respectively. PricewaterhouseCoopers Auditores, S.L. has served as CaixaBank's auditor for the financial years 2023, 2024, and 2025 (up to the preparation of these financial statements) without resigning or being removed from their position.
(3) As at the end of the 2025 financial year, EU Directive 2022/2464 on Corporate Sustainability Reporting (CSRD) had not yet been transposed into Spanish or Portuguese law. Accordingly, the fees corresponding to the “Statement of Non-Financial Information” review remain classified as “Review services other than audit/ assurance – Other review services”, which are not excludable for the purposes of calculating the regulatory ratio.
Note: The regulatory ratio, calculated as the sum of “Review services other than audit/assurance – Other review services” and “Other services” over the average audit fees for the last three financial years, amounts to 21 %. Pursuant to current regulations, CaixaBank has only excluded from the numerator the review services prescribed by legal regulations for the auditor, under the terms of Regulation (EU) No 537/2014 of the European Parliament and of the Council in Article 4(2).

34. Impairment of financial

assets not measured at fair

value

The breakdown of this item in the accompanying statement of profit or loss is as follows:


_BREAKDOWN OF IMPAIRMENT OR REVERSAL OF IMPAIRMENT OF FINANCIAL ASSETS NOT MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS
(Millions of euros)
			2025		2024		2023
			Banking and other business	Insurance activity	Banking and other business	Insurance activity	Banking and other business	Insurance activity
Financial assets at amortised cost			(935)		(1,056)		(1,224)
	Loans and advances		(935)		(1,056)		(1,224)
	Net charges (Note 11)		(814)		(863)		(992)
		Credit institutions			1		(2)
		Customers	(814)		(864)		(990)
		Of which POCIs	58		56		(12)
	Write-downs		(349)		(455)		(481)
	Recovered written-off assets (Note 24.3)		228		262		249
Financial assets at fair value through other comprehensive income (Note 11)					1	2	(1)	(3)
TOTAL			(935)		(1,055)	2	(1,225)	(3)

35. Information on fair value

The Group's process for determining fair value

ensures that the assets and liabilities are measured

according to applicable criteria. In that regard, the

measurement techniques used to estimate fair value

comply with the following aspects:

| The most consistent and appropriate financial

and economic methods are used, which have

proven to provide the most realistic estimate of

the price of the financial instrument and are

commonly used by the market.

| They maximise the use of available information,

both in terms of observable data and recent

transactions of a similar nature, and limit —to the

extent possible— the use of unobservable data

and estimates.

| They are widely and sufficiently documented,

including the reasons for their choice compared

to other alternatives.

| The measurement methods chosen are

respected over time, provided that there are no

reasons to change the reasons for their choice.

| The validity of measurement models is regularly

assessed using recent transactions and current

market data.

Assets and liabilities are classified into one of the

following levels using the following method to obtain

their fair value:

LEVEL 1

Assets and liabilities valued using the price that

would be paid in an organised, transparent and

deep market (“the quoted price” or “the market

price”). In general, the following are included at this

level:

| Quoted debt securities. The following are mainly

classified at this level:

| Spanish and foreign public debt bonds, as well

as other debt instruments issued by Spanish and

foreign issuers.

| Spanish and foreign public debt bonds under the

insurance activity.

| Own securities issued by the Group, mainly

simple bonds and mortgage bonds.

| Quoted equity instruments. Investments in

quoted shares and investments in collective

investment institutions are mainly classified at

this level.

| Derivatives traded in organised markets.

LEVEL 2

Assets and liabilities where the relevant inputs used

in the valuation are directly or indirectly observable

in the market such as quoted prices for similar assets

or liabilities in active markets, interest rate curves or

credit spreads, among others. In general, the

following are included at this level:

| Debt securities of quoted debt with a low volume

and level of market activity. Public debt bonds of

Spanish autonomous communities, as well as

other private debt instruments, are mainly

classified at this level.

| Over-the-counter hedging and trading

derivatives. Interest-rate swaps, as well as

financial swaps on goods and other risks, are

mainly classified at this level.

| Real estate assets corresponding to real estate

investments, inventories, as well as assets arising

from credit restructurings.

LEVEL 3

Assets and liabilities for which the relevant data used

for measurement are not observable market data,

for the measurement of which alternative

techniques are used, including price requests

submitted to the issuer or the use of market

parameters corresponding to instruments with a risk

profile that can be equated to that of the instrument

being measured. In general, the following are

included at this level:

| Debt securities.

| Unquoted equity instruments.

| Loans and receivables.

| Deposits.

35.1. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

The fair value of the financial instruments measured at fair value recognised in the balance sheet, broken down by associated carrying amount and level, is as follows:


_FAIR VALUE OF FINANCIAL ASSETS (FA) MEASURED AT FAIR VALUE (FV)
(Millions of euros)
		31-12-2025					31-12-2024					31-12-2023
		Carrying amount	Fair value				Carrying amount	Fair value				Carrying amount	Fair value
		Carrying amount	Total	Level 1	Level 2	Level 3	Carrying amount	Total	Level 1	Level 2	Level 3	Carrying amount	Total	Level 1	Level 2	Level 3
FA held for trading (Note 11)		5,799	5,799	1,434	4,365		5,688	5,688	844	4,844		6,993	6,993	680	6,309	4
	Derivatives (Note 12.1)	4,378	4,378	13	4,365		4,867	4,867	23	4,844		6,344	6,344	35	6,309
	Equity instruments	641	641	641			415	415	415			303	303	303
	Debt securities	780	780	780			406	406	406			346	346	342		4
FA not designated for trading compulsorily measured at FV through profit or loss (Note 11 )		71	71	30	6	35	88	88	29	6	53	124	124	50	6	68
	Equity instruments	71	71	30	6	35	88	88	29	6	53	124	124	50	6	68
FA at FV through OCI (Note 11)		10,956	10,956	10,337	10	609	9,630	9,630	9,053		577	9,378	9,378	8,752		626
	Equity instruments	610	610	1		609	578	578	1		577	1,340	1,340	714		626
	Debt securities	10,346	10,346	10,336	10		9,052	9,052	9,052			8,038	8,038	8,038
Derivatives - hedge accounting (Note 12.2)		1,125	1,125		1,125		359	359		359		526	526		526
TOTAL BANKING ACTIVITY AND OTHER		17,951	17,951	11,801	5,506	644	15,765	15,765	9,926	5,209	630	17,021	17,021	9,482	6,841	698
FA not designated for trading compulsorily measured at FV through profit or loss (Note 11 )		21,249	21,249	21,005	244		17,160	17,160	16,944	216		13,261	13,261	13,229	32
	Equity instruments	21,247	21,247	21,003	244		17,160	17,160	16,944	216		13,261	13,261	13,229	32
	Debt securities	2	2	2
FA designated at FV through profit or loss (Note 11)		5,698	5,698	5,657	14	27	6,498	6,498	6,468	12	18	7,240	7,240	7,219	3	18
	Debt securities	5,698	5,698	5,657	14	27	6,498	6,498	6,468	12	18	7,240	7,240	7,219	3	18
FA at FV through OCI (Note 11)		60,226	60,226	60,192	23	11	59,137	59,137	59,024	98	15	57,212	57,212	56,338	860	14
	Equity instruments	1	1			1	1	1			1
	Debt securities	60,225	60,225	60,192	23	10	59,136	59,136	59,024	98	14	57,212	57,212	56,338	860	14
Derivatives - hedge accounting (Note 12.2)		252	252		252		172	172		172		680	680		680
TOTAL INSURANCE ACTIVITY		87,425	87,425	86,854	533	38	82,967	82,967	82,436	498	33	78,393	78,393	76,786	1,575	32


_FAIR VALUE OF FINANCIAL LIABILITIES (FL) MEASURED AT FAIR VALUE (FV)
(Millions of euros)
		31-12-2025					31-12-2024					31-12-2023
		Carrying amount	Fair value				Carrying amount	Fair value				Carrying amount	Fair value
		Carrying amount	Total	Level 1	Level 2	Level 3	Carrying amount	Total	Level 1	Level 2	Level 3	Carrying amount	Total	Level 1	Level 2	Level 3
FL held for trading (Note 19)		3,133	3,133	315	2,818		3,631	3,631	230	3,401		2,253	2,253	92	2,161
	Derivatives (Note 12.1)	2,826	2,826	8	2,818		3,420	3,420	19	3,401		2,189	2,189	28	2,161
	Short positions	307	307	307			211	211	211			64	64	64
Derivatives - hedge accounting (Note 12.2)		974	974		974		1,381	1,381		1,381		1,278	1,278		1,278
TOTAL BANKING AND OTHER BUSINESS		4,107	4,107	315	3,792		5,012	5,012	230	4,782		3,531	3,531	92	3,439
FL designated at FV through profit or loss (Note 19)		4,273	4,273	4,273			3,600	3,600	3,600			3,283	3,283	3,283
	Deposits	4,269	4,269	4,269			3,594	3,594	3,594			3,281	3,281	3,281
	Other financial liabilities	4	4	4			6	6	6			2	2	2
Derivatives - hedge accounting (Note 12.2)		3,025	3,025		3,025		3,328	3,328		3,328		6,399	6,399		6,399
TOTAL INSURANCE ACTIVITY		7,298	7,298	4,273	3,025		6,928	6,928	3,600	3,328		9,682	9,682	3,283	6,399

The main valuation techniques, assumptions and inputs used in fair value estimation for levels 2 and 3 by type

of financial instruments are as follows:

Non-observable inputs

Instrument type

Assessment techniques

Observable inputs

Swaps

Present value method

Interest rate curves

Probability of default for the

calculation of CVA and DVA

Derivatives

Exchange rate

options

Black-Scholes &model

Stochastic local volatility model

Vanna-Volga model

Interest rate curves

Quoted option price

Exchange rate spot prices

Probability of default for the

calculation of CVA and DVA

Interest rate curves

Quoted option price

Probability of default for the

calculation of CVA and DVA

Interest rate

options

Present value method

Normal Black model

Index and

equity options

Black-Scholes model

Local volatility

Quoted option prices

Index and share prices

Correlations

Dividends

Probability of default for the

calculation of CVA and DVA.

Commodity

options

Geometric Brownian Motion Model

Commodity spot prices

Exchange rate spot prices

Futures curves

Credit

Interest rate curves

Credit Default Swap curves

Probability of default for the

calculation of CVA and DVA.

Present value method

Intensity of default

Equity instruments

DCF (Discounted Cash Flow)

ECF (Equity Cash Flow)

DDM (Dividend Discount Method)

Underlying carrying amount

Macroeconomic inputs

Risk premia and market premia

Market peers

Business planes

Perpetual growth (g)

Net equity

Debt securities

Present value method

Interest rate curves

Risk premia

Market peers

Observable market prices

Risk premia

Loans and advances

Present value method

Interest rate curves

Early cancellation ratios

Credit loss ratios (internal

models)

(1) Present value method (net present value): this model uses the cash flows of each instrument, which are established in the different contracts, and deducts them to

calculate the present value.

(2) Market peers (similar asset prices): market peer instrument prices, reference indices or benchmarks are employed to calculate the performance as of the entry

price or its current valuation, making subsequent adjustments to take into account the differences between the measured asset and the one taken as reference. It can

also be assumed that the price of an instrument is equivalent to another one.

(3) Black-Scholes model: this model applies a log-normal distribution of the securities prices in such a way that, under a neutral risk, the return expected is the risk-free

interest rate. Under this assumption, the price of vanilla options can be calculated analytically, in such a way that the volatility of the price process can be obtained by

inverting the BS formula for a premium quoted on the market.

(4) Normal Black model: When interest rates approach zero (or become negative), interest rate options become non-modellable by the Black-Scholes model. With the

same assumptions as this model, but on the assumption that forward interest rates follow a normal distribution, we obtain the Normal Black Model, which is used to

measure these interest rate options.

(5) Local stochastic volatility model: Model in which volatility follows a stochastic process over time depending on the level of moneyness, reproducing the ‘volatility

smiles’ observed in the market. These models are appropriate for long-term exotic options using Monte Carlo simulation or the resolution of differential equations for

valuation purposes.

(6) Vanna-Volga model: this model is based on building the local replica portfolio whose hedging costs of second derivatives, vanna (premium derivative with respect

to the volatility and the underlying) and volga (premium's second derivative with respect to the volatility), are added to the corresponding Black-Scholes prices in order

to reproduce the volatility smiles.

(7) Default intensity model: a model that extracts the instant probability of default from the market Credit Default Swaps quote of a given issuer/contract. The survival

function of the issuer with which credit swaps are measured is obtained using these default intensities.

(8) DCF (Discounted Cash Flow): This method analyses and estimates future flows for shareholders and creditors, and then updates them, discounting at a weighted

average rate cost of capital (WACC).

(9) DDM (Dividend Discount Method): future dividend flows are estimated, and then updated, discounting at the cost of equity (ke). A method widely used in regulated

entities with limitations, therefore, to the distribution of dividends since they must keep minimum own funds (e.g. Banking)

(10) ECF (Equity cash flow): This method analyses and estimates future flows for shareholders, and then updates them, discounting at the cost of equity (ke).

(11) Underlying carrying amount: Equity according to financial statements. A method used for holdings for which assets are considered to be measured at or near fair

value.

(12) Geometric Brownian Motion Model: the price of the underlying asset is modelled using a lognormal stochastic process, enabling the valuation of options.

The measurements obtained using internal models

may differ if other techniques were applied or

assumptions used regarding interest rates, credit risk

spreads, market risk, exchange rate risk, or the

related correlations and volatilities. Nevertheless, the

Group's directors consider that the models and

techniques applied appropriately reflect the fair

values of the financial assets and financial liabilities

recognised in the balance sheet, and the gains and

losses on these financial instruments.

The main measurement methods used by the Group

to determine recurring fair value have not been

changed during the year (the main measurement

methods were not changed in 2024 and 2023).

SIGNIFICANT INPUTS USED FOR FINANCIAL

INSTRUMENTS MEASURED AT FAIR VALUE

CLASSIFIED AT LEVEL 2

| Dividends: future equity dividends in index and

stock options are derived from estimated future

dividends and dividend futures quotes.

| Correlations: they are used as input in the

measurement of share basket options and are

extracted using the historical closing prices of the

various components of each basket.

| Probability of default for the calculation of CVA

and DVA: Credit Valuation Adjustments (CVA) and

Debit Valuation Adjustments (DVA) are added to

the valuation of Over The Counter (OTC)

derivatives due to the risk associated with the

counterparty's and own credit risk exposure,

respectively. In addition, Funding Valuation

Adjustment (FVA) is a valuation adjustment of

derivatives of customer transactions that are not

perfectly collateralised that includes the funding

costs related to the liquidity necessary to perform

the transaction.

The CVA is calculated bearing in mind the

expected exposure with each counterparty in

each future maturity. The CVA for an individual

counterparty is equal to the sum of the CVA for all

maturities. Adjustments are calculating by

estimating exposure at default (EAD), the

probability of default (PD) and loss given default

(LGD) for all derivatives on any underlying at the

level of the legal entity with which the Group has

exposure. Similarly, DVA is calculated by

multiplying the expected negative exposure given

the probabilities of default by the Group's LGD.

The data necessary to calculate PD and LGD

come from the credit market prices (Credit

Default Swaps). Counterparty data are applied

where available. Where the information is not

available, the Group performs an exercise that

considers, among other factors, the

counterparty's sector and rating to assign the PD

and the LGD, calibrated directly to market or with

market adjustment factors for the probability of

default and the historical expected loss. With FVA,

the adjustment shares part of the CVA/DVA

approaches, since it is also based on the future

credit exposure of the derivatives, but in this case

the exposures are not netted by counterparty, but

rather at aggregate level in order to recognise

the joint management of the liquidity. The data

necessary to calculate funding cost are also

based on prices taken from its issuance and

credit derivatives markets.

The change in the value of the CVA/FVA and DVA/

FVA adjustments are recognised in “Gains/(losses)

on financial assets and liabilities held for trading,

net” in the statement of profit or loss. No

significant changes in these adjustments

occurred during 2025, 2024 or 2023.

Given the limited net exposure of derivatives

classified as level 2 in the fair value hierarchy,

sensitivity to the various market inputs does not have

overall material balance sheet significance for the

Bank ( ä see Note 3.4.3 Structural interest rate risk and

Note 3.4.5 Market risk).

SIGNIFICANT INPUTS USED FOR FINANCIAL

INSTRUMENTS MEASURED AT FAIR VALUE

CLASSIFIED AT LEVEL 3

Taking into account the Group's risk profile, exposure

to level 3 assets and liabilities is reduced, chiefly

focusing on equity instruments with a fair value

based on multiple measurement models. The inputs

used for estimating fair value take into account

observable variables (macroeconomic inputs, risk

and market premiums and comparable market

variables) and unobservable variables (business

plans, growth rates (g) according to estimates of

institutions with recognised experience and net book

equity according to the annual accounts of the

measured company).

TRANSFERS BETWEEN LEVELS

Transfers between asset and liability levels are made

primarily when there is:

| A significant increase or decrease in the liquidity

of the asset in the market in which it is traded.

| A significant increase or decrease in market

activity related to an observable input or

| A significant increase or decrease in the

relevance of unobservable inputs, classified as

Level 3 if an unobservable input is considered

significant.

In the financial years 2025, 2024 and 2023 there have

been no significant transfers between levels.

Given the Group's risk profile in relation to its portfolio

of debt securities measured at fair value (ä see Note

3.4.1), the change in fair value attributable to credit

risk is not estimated to be material.

CHANGES AND TRANSFERS OF FINANCIAL

INSTRUMENTS IN LEVEL 3

There are no significant movements in Level 3 fair

value financial instruments in the financial years

2025, 2024 and 2023.

35.2. FAIR VALUE OF ASSETS AND LIABILITIES MEASURED AT

AMORTISED COST

The methodology for estimating the fair value of

financial instruments at amortised cost on a

recurring basis is consistent with that set out in Note

35.1. It is worth highlighting that the fair value

presented for certain instruments may not

correspond to their realisable value in a sales or

settlement scenario, since it was not determined for

that purpose; in particular:

| Loans and advances: Fair value is estimated

using the present value method.

| The first step is to conduct a projection of all

principal and interest flows associated with

the contractual terms of these products. This

forecast is refined through an in-house early

termination model, which is tuned using our

historical data.

| Fair value is calculated by discounting those

flows to a risk-free rate curve.

| Lastly, the resulting amount is adjusted for

the estimated expected life-time losses due

to the impairment of the credit quality of

each of the counterparties.

As a result, fair value incorporates the effect of

updating market interest rates and the credit risk

associated with loans and advances.

In loans benchmarked to a floating interest rate,

the change in the fair value based on the

variation of the interest rates therefore depends

on the variation of the contractual interest rates

as they are adapted to the market conditions

and on the evolution of the spread set in the

contract. In fixed-interest loans, the fair value

directly depends on the difference between the

contractual interest rate and the market interest

rate.

| Deposits: Fair value is obtained by using the

present value method:

| A projection is made of the expected cash

flows laid down in the various contracts.

| For current accounts and other demand

deposits, the expected cash flows are

estimated using an internal model

calibrated based on available internal

historical information. The factors estimated

by this modelling include the sensitivity of the

remuneration of these products to market

interest rates and the level of permanence

of these balances on the balance sheet.

| These estimated flows are discounted using

an interest rate curve constructed by adding

to the risk-free curve a credit spread that is

derived from the generic probabilities of loss

of credit ratings.

| Debt securities issued: For instruments classified

in Level 3, fair value is obtained using the present

value method based on the expected cash flows

established in the different issues and

subsequently discounted using:

| Market interest rate curves as of the

appraisal date.

| Own credit risk

| Other financial liabilities: The fair value has been

assimilated to carrying amount, as these are

mainly short-term balances.

For more information on financial assets and

liabilities measured at amortised cost, ä see Notes 11

and 19.

The main valuation techniques, assumptions and inputs used in fair value estimation for levels 2 and 3 by type

of financial instruments are as follows

Instrument type

Assessment

techniques

Observable inputs

Non-observable inputs

Loans and advances

Present value method

Interest rate curves

Early cancellation ratios (internal model)

Provisions for credit risk

Debt securities

Interest rate curves

Risk premia

Market peers

Observable market prices

Risk premia

Deposits

Interest rate curves

Credit spread

Estimated maturity of demand deposit

accounts (internal model)

Debt securities

issued

Interest rate curves

Own credit risk

The fair value of the financial instruments at amortised cost recognised in the balance sheet, broken down by

associated carrying amount and level, is as follows:


_FAIR VALUE OF FINANCIAL ASSETS (FA) MEASURED AT AMORTISED COST
(Millions of euros)
	31-12-2025 *					31-12-2024					31-12-2023
	Carrying amount	Fair value				Carrying amount	Fair value				Carrying amount	Fair value
	Carrying amount	Total	Level 1	Level 2	Level 3	Carrying amount	Total	Level 1	Level 2	Level 3	Carrying amount	Total	Level 1	Level 2	Level 3
FA at amortised cost (Note 11)	474,241	482,360	58,472	16,764	407,124	441,957	453,950	48,691	16,997	388,262	433,091	441,627	49,444	17,617	374,566
Debt securities	84,451	82,310	58,472	16,764	7,074	75,654	72,502	48,691	16,997	6,814	77,336	73,196	49,444	17,617	6,135
Loans and advances	389,790	400,050			400,050	366,303	381,448			381,448	355,755	368,431			368,431
TOTAL BANKING ACTIVITY AND OTHER *	474,241	482,360	58,472	16,764	407,124	441,957	453,950	48,691	16,997	388,262	433,091	441,627	49,444	17,617	374,566
FA at amortised cost (Note 11)	4,855	4,554	4,168	5	381	4,833	4,794	4,267	81	446	4,090	3,991	3,449	2	540
Debt securities	4,473	4,173	4,168	5		4,387	4,348	4,267	81		3,580	3,481	3,449	2	30
Loans and advances	382	381			381	446	446			446	510	510			510
TOTAL INSURANCE ACTIVITY	4,855	4,554	4,168	5	381	4,833	4,794	4,267	81	446	4,090	3,991	3,449	2	540
FA: Financial assets
(*) At 31 December 2025 the difference between book value and fair value amounted to 8,119 million euros (8,288 million euros adjusted for macro interest rate hedges).


_FAIR VALUE OF FINANCIAL LIABILITIES (FL) MEASURED AT AMORTISED COST
(Millions of euros)
	31-12-2025 *					31-12-2024					31-12-2023
	Carrying amount	Fair value				Carrying amount	Fair value				Carrying amount	Fair value
	Carrying amount	Total	Level 1	Level 2	Level 3	Carrying amount	Total	Level 1	Level 2	Level 3	Carrying amount	Total	Level 1	Level 2	Level 3
FL at amortised cost (Note 19)	525,403	496,223	46,023	2,096	448,104	497,822	474,419	50,259	2,289	421,871	479,374	447,413	49,524	2,314	395,575
Deposits **	466,910	437,227			437,227	434,664	411,229			411,229	416,172	385,671			385,671
Debt securities issued	52,206	52,709	46,023	2,096	4,590	56,563	56,595	50,259	2,289	4,047	56,755	55,295	49,524	2,314	3,457
Other financial liabilities	6,287	6,287			6,287	6,595	6,595			6,595	6,447	6,447			6,447
TOTAL BANKING ACTIVITY AND OTHER *	525,403	496,223	46,023	2,096	448,104	497,822	474,419	50,259	2,289	421,871	479,374	447,413	49,524	2,314	395,575
FL at amortised cost (Note 19)	988	989			989	998	998			998	1,076	1,134			1,134
Deposits	874	874			874	752	752			752	738	742			742
Other financial liabilities	114	115			115	246	246			246	338	392			392
TOTAL INSURANCE ACTIVITY	988	989			989	998	998			998	1,076	1,134			1,134
FL: Financial liabilities
(*) At 31 December 2025 the difference between book value and fair value amounted to 29,180 million euros (27,945 million euros adjusted for macro interest rate hedges).
(**) In accordance with IFRS 13.47, the fair value of demand liabilities such as current accounts shall not be less than the amount payable to the customer, i.e. their amortised cost. However, taking into account the stability of the customer liability base under normal operating conditions, an estimate of the fair value is made, particularly on demand deposits, based on liquidity risk management criteria.

35.3. FAIR VALUE OF REAL

ESTATE ASSETS

In the particular case of real estate assets, their fair

value is obtained by requesting the appraisal value

from external appraisal agencies. These agencies

maximise the use of observable market data and

other factors that market participants would

consider when pricing, limiting the use of subjective

considerations and unobservable or contrasted

data. Along these lines, its fair value, based on the fair

value hierarchy, is classified as Level 2.

The Group has a corporate policy that guarantees

the professional competence and independence

and objectivity of external valuation agencies, under

which these agencies must comply with neutrality

and credibility requirements so that use of their

estimates does not undermine the reliability of their

valuations. This policy stipulates that all valuation

agencies and appraisers used by the Group in Spain

must be included in the Bank of Spain's Official

Registry and that their valuations be performed in

accordance with the methodology set out in

Ministerial Order ECO/805/2003, of 27 March.

Therefore, the main appraisal companies with which

the Group has worked during the financial year 2025

are as follows: Tasaciones Inmobiliarias, S.A., Gloval

Valuation, S.A.U., Gesvalt, S.A., UVE Valoraciones, S.A.,

CBRE Valuation Advisory, S.A. and Sociedad de

Tasación, S.A., among others.

The Group has established the following criteria to

obtain the appraisal values of real estate assets.

| For properties resulting from credit

restructurings, appraisals have been requested

in accordance with the criteria established by

Order ECO/805/2003 and its subsequent ECM

599/2025:

| Appraisals under 2 years old are used for

real estate investments, using the rental

update method.

| Appraisals under one year old are used for

stock, using the cost method application.

| For properties classified as non-current

assets held for sale, valuations less than one

year old are used, applying the market

comparison method.

| In the specific case of properties arising from

credit restructurings (foreclosed assets)

classified as non-current assets held for sale and

investment property, the Group has developed

an internal methodology that determines the

discount to be applied to the appraised value

(obtained from valuation companies and

agencies) based on recent experience in the

Group’s asset sales over the past three years.

This methodology is mainly based on the

following drivers:

| Type of property: The model categorises the

type of property, differentiating between

residential, commercial, land and ongoing.

| Location. The model categorises property by

zones, according to the commercial interest

of their geographical location.

| The time that the property has been on the

market. The model categorises property

based on the time from the date of

ownership of the property to the date of sale.

In accordance with the drivers described above, the

Group calculates for each sale the difference

between the amount of the sale price, in the

numerator and the amount of the latest updated

appraisal in force, in the denominator, thus

determining the adjustment to be made to the

appraisal value to obtain the fair value. The updating

of the data used to calculate the adjustment based

on appraisal values is conducted on a two-year

basis.

In order to determine sale costs, the Group

calculates the ratio between the assumed marketing

costs and the total volume of sales of realised assets.

In addition, the Group has established an analysis of

backtesting between the adjustment calculated by

the model and the price at which the properties

were finally sold. This exercise is conducted on a

biannual basis.

The measurement methods used by the Group to

determine non-recurring fair value have not been

changed during the year (measurement methods

were not changed during the years 2024 and 2023).

The fair value of real estate assets by asset type,

along with their associated carrying amount, is set

out below:


_FAIR VALUE OF REAL ESTATE ASSETS BY THE TYPE OF PROPERTY
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Carrying amount	Fair value	Carrying amount	Fair value	Carrying amount	Fair value
Tangible assets – Investment property (Note 15)		884	1,503	1,263	1,696	1,423	1,959
	Homes, land and other	766	1,354	944	1,539	1,042	1,529
	Industrial buildings	44	51	7	11	13	20
	Offices and commercial premises	74	98	312	146	368	410
Other assets - Inventories		12	13	12	15	32	43
Non-current assets for sale classified as held for sale * (Note 18)		1,121	1,606	1,511	2,035	1,666	2,275
	Homes, land and other	1,010	1,472	1,339	1,825	1,448	1,994
	Industrial buildings	58	70	54	67	68	90
	Offices and commercial premises	53	64	118	143	150	191
TOTAL		2,017	3,122	2,786	3,746	3,121	4,277
(*) This includes only assets arising from credit restructurings.

36. Related-party transactions

Pursuant to the Regulation of the Board of Directors,

the Board, following a report from the Audit and

Control Committee, shall approve transactions

conducted by the Bank or its subsidiaries with

directors, with shareholders holding 10 % or more of

the voting rights or represented on the Bank’s Board

of Directors, or with any other related party as

defined in IAS 24 — Related Party Disclosures, unless

by law this falls within the remit of the Annual General

Meeting of Shareholders.

For the purpose of this approval, the following will not

qualify as related party transactions: i) transactions

conducted between the Bank and its wholly-owned

subsidiaries, directly or indirectly; ii) transactions

between the Bank and its subsidiaries or investee

companies provided that no other party related to

the Bank has an interest in such subsidiaries or

investee companies; iii) execution by the Company

and any executive director or member of Senior

Management, of the contract regulating the terms

and conditions of the executive functions they are to

perform, including determining the specific amounts

or remuneration to be paid under that contract, to

be approved in accordance with the provisions of

this Regulation; iv) transactions carried out based on

measures to safeguard the stability of the Bank,

taken by the competent authority responsible for its

prudential supervision.

The Regulation establishes that the Board will be able

to delegate the approval of: i) transactions between

Group companies that are made in the ordinary

course of business and at arm’s length; ii)

transactions arranged under contracts whose

standard terms and conditions apply to a large

number of customers, that are signed at generally

set rates or prices by whomever is acting as the

goods or service provider in question, and where the

amount of the transaction does not exceed 0.5 % of

the Bank’s annual net income.

Loan and deposit transactions or financial services

arranged by CaixaBank with “key management

personnel”, in addition to related party transactions,

were approved under normal market conditions.

Moreover, none of those transactions involved a

significant amount of money. Likewise, there was no

evidence of impairment to the value of the financial

assets or to the guarantees or contingent

commitments held with “key management

personnel”.

There are no related party transactions, as defined in

Article 529s of the CCA that have exceeded, either

individually or aggregated, the established

disclosure thresholds. However, in order to prepare

the financial statements, the most significant

transactions that have taken place during the year

have been disclosed in detail.

The most significant balances between the Group

and its related parties are set out below,

complementing the other balances in the notes to

this report.


_BALANCES AND TRANSACTIONS WITH RELATED PARTIES
(Millions of euros)
	Significant shareholder (1) (2)			Associates and joint ventures			Directors and senior management (3)			Other related parties (4)			Employee pension plan
	31-12-2025	31-12-2024	31-12-2023	31-12-2025	31-12-2024	31-12-2023	31-12-2025	31-12-2024	31-12-2023	31-12-2025	31-12-2024	31-12-2023	31-12-2025	31-12-2024	31-12-2023
ASSETS
Loans and advances	8	14	15	595	567	976	7	7	8	20	19	22	2
Mortgage loans	7	13	14				7	7	8	10	11	10
Other	1	1	1	595	567	976				10	8	12	2
Of which: valuation adjustments					(1)	(2)				(2)	(2)	(1)
Equity instruments				1	1	1
Debt securities	15,733	16,065	16,755
TOTAL	15,741	16,079	16,770	596	568	977	7	7	8	20	19	22	2
LIABILITIES
Customer deposits	374	490	387	1,018	1,087	693	18	19	18	17	21	19	378	51	199
TOTAL	374	490	387	1,018	1,087	693	18	19	18	17	21	19	378	51	199
PROFIT OR LOSS
Interest income	362	578	492	23	38	36
Interest expense	(4)	(11)	(3)	(12)	(18)	(8)		(1)					(5)	(2)	(8)
Fee and commission income			1	364	360	375
Fee and commission expenses	(3)					(2)
TOTAL	355	567	490	375	380	401		(1)					(5)	(2)	(8)
OTHER
Contingent liabilities	55	58	32	42	16	17				1	1	1
Contingent commitments	1	1	1	335	337	99	1	1	1	2	3	2
Assets under management (AUMs) and assets under custody (5)	55,049	34,504	28,287	1,397	1,277	1,142	48	44	31	33	29	24	3,279	3,259	3,351
TOTAL	55,105	34,563	28,320	1,774	1,630	1,258	49	45	32	36	33	27	3,279	3,259	3,351
(1) These refer to balances and transactions carried out with the ”la Caixa” Banking Foundation, CriteriaCaixa, BFA Tenedora de Acciones, SAU, the FROB and its subsidiaries. As at 31 December 2025, CriteriaCaixa’s shareholding in CaixaBank stood at 31.27 % (31.22 % and 31.92 % as at 31 December 2024 and 2023, respectively), and as at 31 December 2025, the stake of BFA Tenedora de Acciones, SAU in CaixaBank was 18.08 % (18.03 % and 17.32 % as at 31 December 2024 and 2023, respectively).
(2) As regards the cost of lawsuits relating to preferential shares and subordinate obligations of the former Bankia, pursuant to the agreement with BFA to distribute costs in this field, Bankia already assumed a maximum loss of 246 million euros resulting from the costs related to the execution of the sentences in which it was convicted in the various proceedings against Bankia (now CaixaBank) due to the aforementioned issues. The potential contingency arising from current and future claims including interest and costs would be, where applicable, paid by BFA under the said agreement. In any case, litigation in this area is currently negligible. In 2025, a total of 2 claims were received from individual investors carrying a negligible economic risk.
(3) Directors and Senior Management of CaixaBank.
(4) Family members and entities related to members of the Board of Directors and Senior Management of CaixaBank.
(5) Includes Collective Investment Schemes, insurance contracts, pension funds and securities.

The main Group companies and the nature of their relationship are set out below.

CaixaBank

37,489

Credit institution Spain

Business

support

Business activity

CaixaBank

Tech

CaixaBank

Payments &

Consumer

Building

Center

VidaCaixa

CaixaBank

Asset

Management

Banco BPI

Imaginersgen

100%

1,632

100%

796

100%

348

100%

919

100%

287

100%

4,476

100%

Provision of IT

services

Consumer

finance and

payment

methods

Management of

real estate

assets

Life insurance

and pension

fund

management

Management of

collective

investment

institutions

Credit institution

Portugal

Management of

youth sec

of the bank

CaixaBank

Operational

Services

Facilitea

Selectplace

Bankia

Habitat

BPI Vida e

Pensões

BPI Gestão

de activos

Nuevo

MicroBank

100%

554

100%

Administrative

and back office

services

Product

marketing

Real estate

management

and

administration

Life insurance

and pension

fund

management

Management of

collective

investment

institutions

Financing of

microcredits

CaixaBank

Facilities

Management

CaixaBank

Equipment

Finance

Living Center

VidaCaixa

Mediación

OBSV

CaixaBank

Luxembourg

CaixaBank

Wealth

Management

Luxembourg

Group Entities

100%

185

100%

Construction

management,

maintenance

and logistics

Vehicle and

equipment

leasing

Real estate

development

Banking and

insurance

operator

Credit institution

Luxembourg

Management of

collective investment

institutions

Silc Inmobles

CaixaBank

Titulización

(Securitisation)

100%

Management of

the data

processing

centres

Securitisation

fund managers

OpenWealth

100%

Independent

wealth consultancy

services

IT Now

Comercia

Global

Payments Ede

Coral Homes

SegurCaixa

Adeslas

Companhia de

Seguros Allianz

Portugal

49%

20%

49,9%

35%

Technology and

IT services and

projects

Payment entity

Real estate

services

Non-life

insurance

Insurance

Servired

Gramina

Homes

Banco

Comercial

de Investimento

25%

20%

35%

Payment

methods

Real estate

services

Mozambique

credit institution

Associates and

joint ventures

Global Payments

Moneytopay

49%

Payment entity

Redsys Servicios

Procesamiento

25%

Payment

methods

Number of employees

Note: This includes the most relevant entities in terms of their contribution

to the Group, excluding transactions of a shareholding nature (dividends)

and extraordinary transactions.

Subsidiaries directly owned by CaixaBank.

Subsidiaries indirectly owned by CaixaBank.

Related companies

Nature of the relationship

CaixaBank provides the FBLC Group (including CriteriaCaixa) certain

services, under the Internal Protocol on Relations entered into by the

parties.

CaixaBank

CaixaBank, S.A. is the parent company of the tax group for the purposes of

corporate income tax with regard to the majority of the consolidated

group's subsidiaries with tax residence in Spain. The tax group includes

CriteriaCaixa and ”la Caixa” Banking Foundation, in accordance with

prevailing legislation.

Business activity

FBLC + CriteriaCaixa

Business support

CaixaBank fully or partially intermediates the financial transactions of the

companies under its consolidated group and finances their activities.

Similarly, CaixaBank holds BPI prudential issuances in its portfolio, within the

framework of the management of the Group's joint liquidity. Additionally,

VidaCaixa procures financial interest rate swaps with CaixaBank to adapt

the flows of investments to insurance contract commitment derivatives.

CaixaBank subsequently closes out this risk in the market.

Business activity

CaixaBank

Business support

CaixaBank receives fees for the services of its subsidiaries and associates

marketed via its network in Spain.

BPI Vida e Pensões

BPI earns fees from the services marketed through its network in Portugal.

Similarly it fully or partially brokers the financial transactions of these

companies and finances their activities.

BPI Gestão de Activos

Banco BPI

Companhia de

Seguros Allianz

Portugal

FBLC + CriteriaCaixa

IT Now (joint venture between the Group and Kyndryl) provides CaixaBank

Tech with technological and IT development services. In turn, CaixaBank

Tech provides IT services to the FBLC Group (including CriteriaCaixa) and to

the rest of CaixaBank Group's subsidiaries.

CaixaBank

IT Now

CaixaBank

Tech

Business activity

Business support

FBLC + CriteriaCaixa

CaixaBank

Operational Services

CaixaBank Operational Services and CaixaBank Facilities Management

provide the companies of the identified staff administrative back-office

services and works management, maintenance and logistics services,

respectively.

CaixaBank

Business activity

CaixaBank Facilities

Management

Business support

CaixaBank has outsourced certain employee commitments to VidaCaixa.

CaixaBank

VidaCaixa

Silc immobles maintains the real estate and carries out maintenance on

the data processing centres, which are leased to CaixaBank.

CaixaBank

Silc immobles

CaixaBank

BuildingCenter

BuildingCenter is the owner of properties which are leased to subsidiaries

of the Group and for which it receives rental income. BuildingCenter also

provides management services for certain CaixaBank assets for which it

receives a fee. LivingCenter is the owner of the properties resulting from the

business combination with Bankia.

Business activity

LivingCenter

Business support

Coral Homes

Gramina

Homes

Transactions between Group companies form part

of the normal course of business and are carried out

at arm's length.

The most significant operations carried out in the

financial years 2025, 2024 and 2023 between group

companies, additional or complementary to those

mentioned in the previous notes to these financial

statements, are as follows:


2025	Merger of CaixaBank (absorbing company) with CaixaBank Advanced Business Analytics and HipoteCaixa 2 (absorbed companies), with no impact on the consolidated statement of profit or loss.
	Merger of CaixaBank Payments & Consumer (acquiring company) with Telefónica Consumer Finance (acquired company), with no impact on the consolidated statement of profit or loss.
2024	There were no significant transactions during the year.
2023	Termination of the servicing contracts maintained with Servihabitat Servicios Inmobiliarios, SLU (a subsidiary of Coral Homes HoldCo, SLU, an associate of the Group). (effective at the start of 2024).

There were no significant transactions in 2025, 2024

and 2023 with the significant shareholder beyond

those referred to in the preceding notes to these

financial statements.

DESCRIPTION OF RELATIONS WITH

CRITERIACAIXA AND ”LA CAIXA” BANKING

FOUNDATION

The 'la Caixa' Banking Foundation (FBLC),

CriteriaCaixa and CaixaBank have an Internal

Protocol on Relations available on the CaixaBank

website, last updated in 2021, which governs the

mechanisms and criteria of relations between

CaixaBank and FBLC and CriteriaCaixa, particularly in

the following areas: i) management of related-party

transactions, establishing mechanisms to avoid

conflicts of interest; and ii) regulation of the

information flows needed to fulfil reporting

obligations in terms of trading and supervision.

The latest amendment to the Internal Protocol on

Relations was made to adapt it to the entry into

force of Act 5/2021, of 12 April, which amends the

revised text of the Spanish Capital Companies Law,

among other matters, with respect to the regime

governing related-party transactions carried out by

listed companies. This affects transactions between

CaixaBank and CaixaBank Group companies, on the

one hand, and ”la Caixa” Banking Foundation and ”la

Caixa” Banking Foundation Group companies, such

as Criteria, on the other.

CaixaBank (as licensee) has a license agreement in

effect with FBLC (as licensor) governing the use of

certain trade names and the assignment of Internet

domain names. The trade names licensed out under

that agreement include the “la Caixa” brand and the

star logo. The trade name license was granted in

2014 with an indefinite nature. However, it may be

terminated by withdrawal or notice of termination by

the licensor after 15 years have passed from signing,

or in the event the stake held by FBLC in CaixaBank is

less than 30 % of the share capital and voting rights

of CaixaBank, or in the event there is a shareholder

with a larger stake in CaixaBank. The Company pays

FBLC a fee for this licence that can be reviewed

annually.

FBLC assigned to CaixaBank and CaixaBank Group

companies, free of charge, the trade marks

corresponding to their corporate names and the

trade marks related to banking, financial, investment

and insurance products and services, except for

those that contain the “Miró Star” (Estrella de Miró)

graphic design or the ”la Caixa” denominative sign,

which are covered by the licence. It also assigned

the domain names used relating to the same

company names.

Beyond the provisions of the above paragraphs, the

Group's activities are not dependent on or

significantly influenced by patents or licences,

industrial contracts, new manufacturing processes

or special commercial or financial contracts.

37. Other disclosure

requirements

37.1. THE ENVIRONMENT

CaixaBank periodically carries out a double materiality assessment to identify those topics that are relevant for

reporting purposes, both from the perspective of risks and opportunities for the Group and in terms of impacts

on its stakeholders. Accordingly, the environment and, in particular, the management of climate risks,

opportunities and impacts is a material issue for the Group and is discussed in greater detail in the following

sections:


Item	Section
Accounting treatment applicable to certain financial instruments indexed to ESG characteristics	See Note 2.2
Risks arising from climate change in relation to the Group’s financial position	See Note 3 See “06. Sustainability information – E – Environment – E1 – Climate change – Management of climate change-related risks” See “06. Sustainability information – ES – Sustainable finance – Sustainable business – Mobilisation of sustainable finance in Spain”
Impact on the Group's financial projections of decarbonisation commitments, including potential impairment exposure on potentially obsolescent non-financial assets under climate transition scenarios.	See Note 16
With regard to property, plant and equipment, there are no significant amounts of property, plant and equipment in the Group that are affected by any environmental aspect.	See Note 15
The Group has not been subject to any significant fines or sanctions related to environmental compliance.	See Note 20.3
Environmental financing and investment solutions, and adaptation to climate change and the energy transition across our value chain	See “06. “Sustainability information – ES – Sustainable Finance”
Environmental management and carbon footprint derived from the Group's activities, including the mitigation strategy where renewable certificates of origin are considered.	See "06. Sustainability Information – E – Environment – E1 – Climate Change – Risk management and monitoring”

37.2. CUSTOMER SERVICE

CaixaBank has a Customer Service Office charged

with handling and resolving customer complaints

and claims. This office has no connections with

commercial services and performs its duties with

independent judgment and according to the

protection rules for financial services customers.

The complaints admitted by the customer service

departments and by the supervisors’ complaints

services are as follows:


_COMPLAINTS
(Number)
Procedure type	CSO			Bank of Spain			CNMV			DGS (Directorate General of Insurance)
Procedure type	2025	2024	2023	2025	2024	2023	2025	2024	2023	2025	2024	2023
Complaints admitted
Preliminary claims	96,767	372,903	128,925	99	147	196
Other	124,005	174,850	209,839	1,887	2,357	4,010	116	154	231	326	467	521

The average resolution time in 2025 stood at 7 calendar days, compared with 14 and 7 calendar days in 2024

and 2023, respectively.

For further information on the Customer Service Department (SAC), ä see section “06 Sustainability

information – S – Social – S4 – Customers – Customer service” of the consolidated management report.

38. Statements of cash flows

The main cash flow variations corresponding to the

financial year are set out below by type:

| Operating activities (4,410 million euros): starting

from the profit for the year, the change is mainly

due to the increase in loans to customers and

customer deposits (classified under financial

assets and financial liabilities at amortised cost,

respectively).

| Investment activities (-34 million euros): cash

flows arising mainly from additions to and

disposals of tangible and intangible assets, as

well as from the sale of non-current assets held

for sale.

| Financing activities (-8,349 million euros): mainly

from flows arising from debt issuances and

maturities and share buyback (SBB)

programmes, as well as interim and final

dividends paid during the period.

Appendix 1 – CaixaBank investments in

subsidiaries


_LIST OF SUBSIDIARIES
(Thousands of euros)
			% shareholding		Share capital			Cost of direct holding (net)
Corporate name	Business activity	Registered address	Direct	Total	Share capital	Reserves	Results	Cost of direct holding (net)
Aris Rosen, S.A.U.	Services	Barcelona – Spain	100.00	100.00	60	255	(64)	-
Arquitrabe Activos, S.L.	Holding of shares	Barcelona – Spain	100.00	100.00	98,431	10,590	8,714	106,623
BPI (Suisse), S.A. (1)	Financial services	Switzerland	-	100.00	3,000	8,257	(927)	-
BPI Gestão de Activos - Sociedade Gestora de Fundos de Investimento Mobiliário, SA	Management of collective investment institutions	Portugal	-	100.00	2,500	15,268	7,150	-
BPI Vida e Pensões - Companhia de Seguros, SA	Life insurance and pension fund management	Portugal	-	100.00	76,000	58,551	27,200	-
Banco BPI, S.A.	Banking	Portugal	100.00	100.00	1,293,063	2,654,684	511,597	2,060,366
Bankia Habitat, S.L.U.	Holding of shares	Madrid – Spain	-	100.00	755,560	(46,321)	(11,378)	-
BuildingCenter, S.A.U.	Holder of real estate assets	Madrid – Spain	100.00	100.00	100,003	819,761	(118,432)	1,282,814
Caixa Capital Biomed S.C.R. S.A.	Venture capital company	Barcelona – Spain	90.91	90.91	1,200	314	(332)	1,084
Caixa Capital Fondos Sociedad De Capital Riesgo S.A.	Venture capital company	Madrid – Spain	100.00	100.00	1,200	6,494	(7)	5,703
Caixa Capital Micro SCR S.A.	Venture capital company	Madrid – Spain	100.00	100.00	1,200	515	(60)	1,254
Caixa Capital Tic S.C.R. S.A.	Venture capital company	Barcelona – Spain	80.65	80.65	1,209	1,997	2,924	6,823
Caixa Emprendedor XXI, S.A.U.	Promotion of business and entrepreneurial initiatives	Barcelona – Spain	100.00	100.00	1,007	17,762	(595)	17,954
CaixaBank Asset Management, SGIIC, S.A.U.	Management of collective investment institutions	Madrid – Spain	100.00	100.00	86,310	52,474	201,764	119,475


_LIST OF SUBSIDIARIES
(Thousands of euros)
			% shareholding		Share capital			Cost of direct holding (net)
Corporate name	Business activity	Registered address	Direct	Total	Share capital	Reserves	Results	Cost of direct holding (net)
CaixaBank Brasil Escritório de Representaçao Ltda. (2)	Representation office	Brazil	100.00	100.00	1,194	4,241	927	345
CaixaBank Equipment Finance, S.A.U.	Vehicle and equipment leasing	Madrid – Spain	-	100.00	10,518	60,379	(1,927)	-
CaixaBank Facilities Management, S.A.	Project management, maintenance, logistics and procurement	Barcelona – Spain	100.00	100.00	1,803	1,871	790	2,053
CaixaBank Notas Minoristas, S.A.U.	Finance	Madrid – Spain	100.00	100.00	60	4,032	(33)	4,092
CaixaBank Titulizacion S.G.F.T., S.A.U.	Securitisation fund management	Madrid – Spain	100.00	100.00	1,503	1,977	1,654	6,423
CaixaBank Wealth Management Luxembourg, S.A.	Banking	Luxembourg	100.00	100.00	12,701	45,049	13,273	65,725
CaixaBank Asset Management Luxembourg, S.A.	Management of collective investment institutions	Luxembourg	-	100.00	150	3,860	1,184	-
CaixaBank Operational Services, S.A.	Specialised services for back office administration	Barcelona – Spain	100.00	100.00	1,803	19,515	1,344	9,579
CaixaBank Payments & Consumer, E.F.C., E.P., S.A.	Consumer finance	Madrid – Spain	100.00	100.00	135,156	1,696,156	118,616	1,602,028
CaixaBank Tech, S.L.	Provision of IT services	Barcelona – Spain	100.00	100.00	15,003	101,871	12,674	167,812
Centro de Servicios Operativos e Ingeniería de Procesos, S.L.U.	Specialised services for back office administration	Madrid – Spain	100.00	100.00	500	14,800	(19)	17,306
Coia Financiera Naval, S.L.	Provision of financial services and intermediation in the shipbuilding sector	Madrid – Spain	76.00	76.00	3	17	-	2
Facilitea Selectplace, S.A.U.	Product marketing	Barcelona – Spain	-	100.00	60	29,943	38,824	-
Grupo Aluminios de Precisión, S.L.U. (*)	Aluminium casting in sand moulds	Burgos – Spain	100.00	100.00	7,500	23,061	2,168	3,360
Hiscan Patrimonio, S.A.	Holding of shares	Barcelona – Spain	100.00	100.00	46,867	52,882	46,359	148,500
Imaginersgen, S.A.	Digital business	Barcelona – Spain	99.99	100.00	60	4,867	13,522	1,858
Inter Caixa, S.A.	Services	Barcelona – Spain	99.99	100.00	60	(2)	(7)	-
Livingcenter Activos Inmobiliarios, S.A.U.	Real estate development	Barcelona – Spain	-	100.00	137,331	1,253,354	(20,147)	-
Líderes de Empresa Siglo XXI, S.L.	Private security of goods and people	Barcelona – Spain	100.00	100.00	378	1,461	362	754


_LIST OF SUBSIDIARIES
(Thousands of euros)
			% shareholding		Share capital			Cost of direct holding (net)
Corporate name	Business activity	Registered address	Direct	Total	Share capital	Reserves	Results	Cost of direct holding (net)
Nuevo Micro Bank, S.A.U.	Financing of microloans and other loans with a social impact	Madrid – Spain	100.00	100.00	90,186	327,103	23,205	90,186
OpenWealth, S.A.	Other financial services, with the exception of insurance and pension plans NEC.	Barcelona – Spain	100.00	100.00	120	544	150	425
PremiaT Comunidad Online, S.L.	Marketing of cashless platform	Barcelona – Spain	-	100.00	100	1,876	(41)	-
Puerto Triana, S.A.U.	Shopping centre real estate	Seville – Spain	100.00	100.00	124,290	440	(4,110)	120,621
Silc Immobles, S.A.	Real estate administration, management and operation	Madrid – Spain	-	100.00	40,070	89,839	317	-
Telefónica Renting, S.A.	Equipment leasing	Madrid – Spain	-	50.00	800	9,418	19,358	-
Tenedora Fintech Venture, S.A.U.	Holding of shares	Madrid – Spain	100.00	100.00	60	1,608	(22)	369
Unión de Crédito para la Financiación Mobiliaria e Inmobiliaria, E.F.C., S.A.U.	Mortgage loans	Madrid – Spain	100.00	100.00	18,986	52,475	894	70,639
Valenciana de Inversiones Mobiliarias, S.L.U.	Holding of shares	Valencia – Spain	100.00	100.00	4,330	109,289	(27)	113,370
VidaCaixa Mediació, Sociedad de Agencia de Seguros Vinculada, S.A.U.	Insurance agency	Madrid – Spain	-	100.00	269	75,564	2,769	-
VidaCaixa, S.A. de Seguros y Reaseguros Sociedad Unipersonal	Direct life insurance, reinsurance, and pension fund management	Madrid – Spain	100.00	100.00	1,347,462	36,657	1,247,915	2,534,688
Web Gestión 4, S.A.	Real estate management and administration	Barcelona – Spain	100.00	100.00	60	1,529	(39)	1,591
(*) Companies considered as non-current assets held for sale.
(1) All data except cost are in local currency: Swiss franc (thousands)
(2) All data except cost are in local currency: Brazilian real (thousands).
Note: The information corresponding to non-listed companies is based on the most recent data available (actual or estimated) at the time of authorisation for issue of these notes to the financial statements.
Note: Besides the companies set out in the details of the Appendix, the Group holds a 100 % share of the share capital of the following companies that are inactive and/or have no business activity: GDS Grupo de Servicios I, S.A.; Web Gestión 1, S.A.; Gestión Global de Participaciones, S.L.U.; Caixa Corp, S.A.; Estugest, S.A.; Inversiones Corporativas Digitales, S.L. and Negocio de Finanzas e Inversiones II, S.L.. Similarly, the following companies of which the Group wholly owns the share capital, are currently in liquidation: Inmobiliaria Piedras Bolas, S.A. de C.V.; Playa Paraíso Maya, S.A. de C.V.; Inmacor Desarrollos, S.A. de C.V.; Proyectos y Desarrollos Hispanomexicanos, S.A. de C.V.; Grand Coral Property and Facility Management, S.A., de CV; Tubespa, S.A. and Costa Eboris, S.L.U. Likewise, the company has the following investees as subsidiaries: Habitat Dos Mil Dieciocho, S.L.; Puertas de Lorca Desarrollos Empresariales, S.L.U., in liquidation; and Abside Capital SICAV, S.A., which are currently in liquidation.

Appendix 2 – CaixaBank stakes in agreements

and joint ventures of the Group


_LIST OF AGREEMENTS AND JOINT VENTURES
(Thousands of euros)
Corporate name	Business activity	Registered address	% shareholding		Assets	Liabilities	Ordinary income	Share capital	Reserves	Results	Total comprehen- sive income	Cost of direct holding (net)	Dividends accrued on total ownership interest
			% shareholding
			Direct	Total
Arrendadora Ferroviaria, S.A.	Lessor of trains	Barcelona – Spain	54.15	54.15	120,191	120,718	6,006	60	(614)	26	26	-	-
FrauDfense, S.L.	IT Services	Madrid – Spain	-	33.33	2,926	406	-	3	4,769	(2,253)	(2,253)	-	-
Note: The information corresponding to non-listed companies is based on the most recent data available (actual or estimated) at the time of authorisation for issue of these notes to the financial statements.
Note: The company also has joint control over the subsidiaries Royactura, S.L. (in liquidation) and Inversiones Alaris, S.L. (in liquidation), which are currently under liquidation.

Appendix 3 – CaixaBank investments in

associates of the Group


_LIST OF ASSOCIATES
(Thousands of euros)
Corporate name	Business activity	Registered address	% shareholding		Assets	Liabilities	Ordinary income	Share capital	Reserves	Results	Total comprehen- sive income	Cost of direct holding (net)	Dividends accrued on total ownership interest
Corporate name	Business activity	Registered address	Direct	Total	Assets	Liabilities	Ordinary income	Share capital	Reserves	Results	Total comprehen- sive income	Cost of direct holding (net)	Dividends accrued on total ownership interest
Ape Software Components S.L.	Computer programming activities	Barcelona – Spain	-	25.22	2,516	2,182	2,015	12	244	79	79	-	-
Banco Comercial de Investimento, S.A.R.L. (1)	Banking	Mozambique	-	35.67	242,449,679	206,995,320	30,262,269	10,000,000	22,844,720	2,609,639	2,609,639	-	-
Bizum, S.L.	Payment entity	Madrid – Spain	-	24.00	29,405	15,115	64,727	2,346	8,635	3,308	3,308	-	-
Brilliance-Bea Auto Finance Co., L.T.D. (2)	Automotive sector financing	China	-	22.50	2,505,279	878,734	101,074	1,600,000	98,250	(71,705)	(71,705)	-	-
Comercia Global Payments, Entidad de Pago, S.L.	Payment entity	Madrid – Spain	-	20.00	801,897	314,640	675,912	4,857	371,533	110,866	110,866	-	28,948
Companhia de Seguros Allianz Portugal, S.A.	Insurance	Portugal	-	35.00	1,516,615	1,291,510	680,954	31,636	143,038	50,431	50,431	-	14,034
Concessia, Cartera y Gestión de Infraestructuras, S.A.	Infrastructure construction and operation	Madrid – Spain	24.20	32.20	5,362	-	-	5,787	(270)	(155)	(155)	-	-
Coral Homes, S.L.	Real estate services	Madrid – Spain	-	20.00	846,478	42,170	418,322	270,774	660,403	(126,868)	(126,868)	-	-
Drembul, S.L.	Real estate development	Logroño – Spain	21.83	46.83	52,449	2,880	3,808	30	39,511	2,712	2,712	2,363	-
Girona, S.A.	Holding of shares	Girona – Spain	34.22	34.22	6,210	470	1,221	1,200	4,548	(9)	(9)	1,642	-
Global Payments Moneytopay, EDE, S.L.	Payment entity	Madrid – Spain	-	49.00	254,946	224,019	22,629	1,367	22,051	7,509	7,509	-	4,941
Gramina Homes, S.L.	Real estate services	Madrid – Spain	-	20.00	109,772	6,973	34,121	27,626	75,415	(242)	(242)	-	-


_LIST OF ASSOCIATES
(Thousands of euros)
Corporate name	Business activity	Registered address	% shareholding		Assets	Liabilities	Ordinary income	Share capital	Reserves	Results	Total comprehen- sive income	Cost of direct holding (net)	Dividends accrued on total ownership interest
Corporate name	Business activity	Registered address	Direct	Total	Assets	Liabilities	Ordinary income	Share capital	Reserves	Results	Total comprehen- sive income	Cost of direct holding (net)	Dividends accrued on total ownership interest
IT Now, S.A.	Services relating to technology-IT projects	Barcelona – Spain	39.00	49.00	63,563	43,061	209,544	3,382	15,378	1,742	1,742	1,323	-
Murcia Emprende Sociedad de Capital Riesgo, S.A.	Venture capital company	Murcia – Spain	28.68	28.68	4,110	52	-	2,557	473	1,015	1,015	600	-
Parque Científico y Tecnológico de Córdoba, S.L.	Science park operation and management	Córdoba – Spain	15.58	35.69	28,234	22,437	830	23,422	(19,478)	(1,213)	(1,213)	-	-
Portic Barcelona, S.A.	Other services related to information technology and telecommunicatio ns	Barcelona – Spain	25.81	25.81	2,654	353	2,620	291	1,903	106	106	105	-
Qivalis B.V.	Other financial services, with the exception of insurance and pension plans NEC.	Netherlands	9.09	9.09	33,000	-	-	11	32,989	-	-	3,000	-
Redsys Servicios de Procesamiento, S.L.	Payment methods	Madrid – Spain	-	24.90	134,594	57,806	162	5,815	57,179	13,794	13,794	-	-
SegurCaixa Adeslas, S.A. de Seguros y Reaseguros	Non-life insurance	Madrid – Spain	-	49.92	5,754,640	3,634,705	5,380	469,670	919,352	555,172	553,743	-	223,095
Servired, Sociedad Española de Medios de Pago, S.A.	Payment methods	Madrid – Spain	-	25.00	104,936	104,326	6,494	60	594	(45)	(45)	-	-
Sistema de Tarjetas y Medios de Pago, S.A.	Payment methods	Madrid – Spain	-	20.61	610,075	601,102	9,279	240	6,304	2,429	2,429	-	-
Sociedad Española de Sistemas de Pago, S.A.	Payment entity	Madrid – Spain	23.23	23.23	16,857	4,849	19,407	524	8,671	2,813	2,813	1,777	52
Societat Catalana per a la Mobilitat, S.A.	Development and implementation of the T-mobilitat project	Barcelona – Spain	16.79	16.79	128,367	107,292	26,702	13,823	617	4,894	4,894	1,846	-
TFP, S.A.C. (5)	Factoring	Peru	16.20	16.20	13,747	171	1,922	6,000	9,803	(2,227)	(2,227)	538	-
Telefonica Factoring España, S.A.	Factoring	Madrid – Spain	20.00	20.00	71,514	56,414	35,154	5,109	1,740	8,252	8,252	2,525	2,099
Telefonica Factoring do Brasil, Ltda. (4)	Factoring	Brazil	20.00	20.00	147,380	138,545	52,560	5,000	1,000	2,836	23,654	2,029	1,305

_LIST OF ASSOCIATES

(Thousands of euros)

Corporate name

Business

activity

Registered

address

% shareholding

Assets

Liabilities

Ordinary

income

capital

Reserves

Results

Total

comprehen-

sive income

Cost of

direct

holding

(net)

Dividends

accrued on

total

ownership

interest

Direct

Total

Telefónica Factoring

Colombia (3)

Factoring

Colombia

16.20

188,919,983

177,268,818

40,008,184

4,000,000

2,125,218

5,525,947

380

221

Zone2Boost, S.L.

Holding company

for business

acquisition

Barcelona –

Spain

40.00

3,559

129

2,162

3,965

(538)

(1) All data except cost are in local currency: Mozambique metical (thousands).

(2) All data except cost are in local currency: Renminbi (thousands).

(3) All figures except cost and dividend are shown in local currency: Colombian pesos (thousands).

(4) All figures except cost and dividend are shown in local currency: Brazilian real (thousands).

(5) All data except the cost are in local currency: Peruvian sol (thousands).

Note: The information corresponding to non-listed companies is based on the most recent data available (actual or estimated) at the time of authorisation for issue of these notes to the financial statements.

Note: The Company also has significant influence in the investee Guadapelayo, S.L. (in liquidation), S.L., which is currently in liquidation.

Appendix 4 – Disclosures on

changes in ownership interests

in 2025

(Article 155 of the Capital Companies Law and Article 105 of Law 6/2023 of 17 March on Securities Markets and

Investment Services).

No purchases or sales of equity interests were carried out during 2025.

Appendix 5 – Annual banking

report

In compliance with the provisions of Article 87 of Law

10/2014, of 26 June, on the regulation, supervision and

solvency of credit institutions, the information

required is detailed below:

Name, nature and geographical location of activity

The name, nature and geographical location of the

activity is detailed in Note 1.1 of the consolidated

annual accounts.

Appendices 1, 2 and 3 of the CaixaBank Group’s

consolidated financial statements list the

subsidiaries, joint ventures and associates that make

up CaixaBank Group.

Appendix 4 to the consolidated financial statements

provides information on notifications of changes in

shareholdings during 2025.

Business volume

CaixaBank, S.A. is established in Spain, and has 7

foreign subsidiaries (10 branches), specifically in

Poland, Morocco (3 branches), the UK, Germany,

France, Portugal (2 branches) and Italy.

CaixaBank also has 17 representative offices which

do not carry out banking activities but provide

information on the Company's services in the

following 16 jurisdictions: Algeria, Australia, Brazil,

Canada, China (2), Chile, Colombia, Egypt, United

Arab Emirates, USA, Hong Kong, India, Turkey, Peru,

Singapore and South Africa.

Banco BPI has 301 branches in Portugal.

Business volume by country on a consolidated basis

is as follows:


_GEOGRAPHICAL INFORMATION: BREAKDOWN OF ORDINARY INCOME FROM CUSTOMERS *
(Millions of euros)
	Banking and insurance			BPI			Corporate centre			Group total
	2025	2024	2023	2025	2024	2023	2025	2024	2023	2025	2024	2023
Spain	23,533	25,592	23,701				(32)	16	17	23,501	25,608	23,718
Portugal	219	184	183	1,704	1,972	1,685				1,923	2,156	1,868
Poland	131	118	106							131	118	106
Morocco	25	21	17							25	21	17
United Kingdom	352	285	214							352	285	214
Germany	409	403	286							409	403	286
France	315	285	218							315	285	218
Italy	146	128	35							146	128	35
Angola							43	39	30	43	39	30
Share of profit/(loss) accounted for using the equity method **							15	41	42	15	41	42
Other	72	36	30			1				72	36	31
TOTAL	25,202	27,052	24,790	1,704	1,972	1,686	26	96	89	26,932	29,120	26,565
(*) Corresponding to the following items in the Group's public statement of profit or loss:
1. Interest income
2. Dividend income
3. Share of profit/(loss) of entities accounted for using the equity method
4. Fee and commission income
5. Gains/(losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net
6. Gains/(losses) on financial assets and liabilities held for trading, net
7. Gains/(losses) on assets not designated for trading compulsorily measured at fair value through profit or loss, net
8. Gains/(losses) on financial assets and liabilities designated at fair value through profit or loss, net
9. Gains/(losses) from hedge accounting, net
10. Other operating income
11. Insurance revenue
(**) Relates mainly to the share of profit/(loss) of international associates accounted for using the equity method.

| Gross profit/(loss) before tax

The gross profit before tax on a consolidated

basis for the financial year 2025 amounts to

8,674 million euros (8,319 and 6,924 million euros

in the financial years 2024 and 2023,

respectively), which includes the ordinary

income from the branches detailed in the

previous point.

| Income tax

Profit taxes paid or refunded in the year in each

jurisdiction include tax instalments and

withholding taxes paid. Refunds collected for

income tax from previous years are also

considered. In addition, in 2025 the Interest and

Fee Margin Tax (IMIC) is taken into account. Lastly,

it includes the results of settlements arising from

tax inspection assessments that were paid in

that financial year.

The amount of cash payments and refunds of

corporate income tax does not correspond to

the amount of the income tax expense

recognised in the consolidated statement of

profit or loss. The amount of the payments

includes the instalments and withholdings paid

on the profit for the year. However, the refunds

are not directly linked to the profit for the year

since they correspond to profits earned in

previous years minus the corresponding

instalments and withholdings. The income tax

expense recognised in the consolidated

statement of profit or loss if it is directly related to

the profit before tax for the current financial year.

The net income tax expense on a consolidated

basis for 2025 amounted to (2,775) million euros

(2,525 million euros and 2,108 million euros in 2024

and 2023, respectively), as presented in the

consolidated statement of profit or loss in the

annual financial statements. The amount

recognised in 2025 includes 611 million euros in

respect of IMIC corresponding to the 2025

financial year itself (payable in 2026).

Income tax payments in 2025 amounted to 2,361

million euros, of which mainly 1,925 million euros

in Spain, 318 million euros in Portugal, 25 million

euros in the United Kingdom, 30 million euros in

France, 16 million euros in Germany, 29 million

euros in Italy, 11 million euros in Poland and 5

million euros in Morocco. The refund for advance

payments on account of corporate income tax

for previous years totalled 1,039 million euros in

Spain. In addition, in 2025 a payment of 580

million euros was made in respect of IMIC in

Spain, corresponding to 2024, which remains

recognised on the balance sheet under the line

item “Financial assets at amortised cost”.

| Grants and public aid received

The Group received the following grants and public aid:


_GRANTS AND PUBLIC AID
(Millions of euros)
Body	Item	31-12-2025	31-12-2024	31-12-2023
Ministry of Industry, Energy and Tourism - department of shipbuilding	Aid for shipbuilding	8.6	8.1	10.1
State Foundation for Training in Employment	Employee training courses under meeting certain conditions	3.9	4.2	3.7
Spanish regional governments	Installation of ATMs in certain areas	2.0	1.9	1.2

| Indicators and ratios

The relevant indicators and ratios are set out in

the section “07 Shareholders and Investors –

Key Group figures” of the Management Report

for financial year 2025. The return on assets in

2025, calculated as net profit (adjusted to reflect

the amount of the Additional Tier 1 coupon, after

tax, reported in equity) divided by average total

assets over the last twelve months, was 0.9 %

and 0.9 % in 2024 and 0.7 2023% in 2023

| Full-time workforce by country

The full-time workforce by country is as follows:


_FULL-TIME STAFF BY COUNTRY
(Number of employees)
	31-12-2025	31-12-2024	31-12-2023
Spain	42,122	41,304	40,174
Portugal	4,672	4,426	4,441
Poland	31	26	24
Morocco	41	33	29
United Kingdom	42	33	28
Germany	40	35	25
France	36	30	27
Switzerland	2	6	9
Other countries - Representative offices	134	121	106
TOTAL	47,120	46,014	44,863

Appendix 6 – Foreclosed assets

in Spain

The following is a breakdown of foreclosed real estate assets according to their origin and type of property,

relating to the business in Spain:


_FORECLOSED REAL ESTATE ASSETS - 31-12-2025 *
(Millions of euros)
			Gross carrying amount	Allowances for impairment **	Of which from foreclosure	Net carrying amount
Acquired from loans to real estate constructors and developers			576	(260)	(185)	316
	Finished constructions		465	(178)	(114)	287
		Homes	385	(142)	(86)	243
		Other	80	(36)	(28)	44
	Unfinished constructions		18	(10)	(8)	8
		Homes	15	(9)	(7)	6
		Other	3	(1)	(1)	2
	Land		93	(72)	(63)	21
		Urban land	66	(49)	(44)	17
		Other land	27	(23)	(19)	4
Acquired from mortgage loans to homebuyers			1,740	(531)	(356)	1,209
Other real estate assets			690	(269)	(214)	422
TOTAL			3,006	(1,060)	(755)	1,947
(*) Includes foreclosed assets classified as “Tangible assets – Investment property” amounting to 814 million euros, net, and rights arising from foreclosure proceedings in the amount of 54 million euros, net. It excludes the foreclosed real estate assets of Banco BPI, with a net carrying amount of 0,9 million euros, as this does not qualify as business in Spain.
(**) Cancelled debt associated with the foreclosed assets totalled 4.138 million euros and total write-downs of this portfolio amounted to 2.191 million euros, 1.059 million of which are allowances for impairment recognised in the balance sheet.


_FORECLOSED REAL ESTATE ASSETS - 31-12-2024 *
(Millions of euros)
		Gross carrying amount	Allowances for impairment **	Of which from foreclosure	Net carrying amount
Acquired from loans to real estate constructors and developers		773	(308)	(210)	465
	Finished constructions	618	(213)	(134)	405
	Unfinished constructions	30	(16)	(10)	14
	Land	125	(79)	(66)	46
Acquired from mortgage loans to homebuyers		2,138	(612)	(404)	1,526
Other real estate assets		828	(287)	(225)	541
TOTAL		3,739	(1,207)	(839)	2,532
(*) Includes foreclosed assets classified as “Tangible assets – Investment property” amounting to 1,008 million euros, net, and rights arising from foreclosure proceedings in the amount of 102 million euros, net. It excludes the foreclosed real estate assets of Banco BPI, with a net carrying amount of 1 million euros, as this does not qualify as business in Spain.
(**) Cancelled debt associated with the foreclosed assets totalled 5.135 million euros and total write-downs of this portfolio amounted to 2.603 million euros, 1.207 million of which are allowances for impairment recognised in the balance sheet.


_FORECLOSED REAL ESTATE ASSETS - 31-12-2023 *
(Millions of euros)
		Gross carrying amount	Allowances for impairment **	Of which from foreclosure	Net carrying amount
Acquired from loans to real estate constructors and developers		849	(329)	(225)	520
	Finished constructions	651	(213)	(131)	438
	Unfinished constructions	45	(25)	(16)	20
	Land	153	(91)	(78)	62
Acquired from mortgage loans to homebuyers		2,470	(696)	(469)	1,774
Other real estate assets		799	(269)	(215)	530
TOTAL		4,118	(1,294)	(909)	2,824
(*) Includes foreclosed assets classified as “Tangible assets – Investment property” amounting to 1,127 million euros, net, and rights arising from foreclosure proceedings in the amount of 115 million euros, net. It excludes the foreclosed real estate assets of Banco BPI, with a net carrying amount of 2 million euros, as this does not qualify as business in Spain.
(**) Cancelled debt associated with the foreclosed assets totalled 5.685 million euros and total write-downs of this portfolio amounted to 2.862 million euros, 1.294 million of which are allowances for impairment recognised in the balance sheet.

Appendix 7 – Real estate

financing

FINANCING FOR REAL ESTATE CONSTRUCTION AND

DEVELOPMENT

The tables below show financing for real estate construction and development, including developments

carried out by non-developers (business in Spain):


_FINANCING FOR REAL ESTATE CONSTRUCTION AND DEVELOPMENT
(Millions of euros)
	31-12-2025		31-12-2024		31-12-2023
	Total amount	Of which: non- performing	Total amount	Of which: non- performing	Total amount	Of which: non- performing
Gross amount	4,363	186	4,307	277	4,388	295
Allowances for impairment	(142)	(111)	(164)	(126)	(205)	(151)
NET AMOUNT	4,221	75	4,143	151	4,183	144
Excess gross exposure over the maximum recoverable value of collateral	1,000	117	1,061	124	935	155
Written-off assets	1,761		1,793		1,823
Loans and advances to customers excluding public administrations	329,783		284,245		280,739

The tables below show the breakdown of financing

for real estate developers and developments,

including developments carried out by non-

developers (business in Spain), by collateral:


_FINANCING FOR REAL ESTATE DEVELOPERS AND DEVELOPMENTS BY TYPE OF COLLATERAL
(Millions of euros)
		31-12-2025	31-12-2024	31-12-2023
Without mortgage collateral		760	770	516
With mortgage collateral		3,603	3,537	3,872
Finished constructions		2,199	2,411	2,783
	Homes	1,496	1,600	1,870
	Other	703	811	913
Unfinished constructions		1,151	909	870
	Homes	1,075	793	746
	Other	76	116	124
Land		253	217	219
	Urban land	117	126	104
	Other land	136	91	115
TOTAL		4,363	4,307	4,388

Below are detailed the financial guarantees granted

in relation to real estate construction and

development, reflecting the maximum level of credit

risk exposure, which is the amount the Group would

have to pay if the guarantee were executed.


_FINANCIAL GUARANTEES
(Millions of euros)
		31-12-2025	31-12-2024	31-12-2023
Financial guarantees given related to real estate construction and development		58	64	113
	Amount recognised under liabilities on the balance sheet	0	0	0

FINANCING TO HOUSEHOLDS FOR HOME PURCHASE

Home purchase loans with a mortgage guarantee, by loan-to-value (LTV) ratio and based on the latest

available appraisal, are as follows:


_HOME PURCHASE LOANS BY LTV *
(Millions of euros)
		31-12-2025		31-12-2024		31-12-2023
		Gross amount	Of which: non- performin g	Gross amount	Of which: non- performin g	Gross amount	Of which: non- performin g
Without real estate mortgage		1,075	13	960	9	971	8
With real estate mortgage, by LTV **.		123,900	2,665	118,246	3,492	117,925	3,338
	LTV ≤ 40 %	35,259	447	34,791	440	36,474	433
	40 % < LTV ≤ 60 %	37,422	557	36,345	640	36,954	601
	60 % < LTV ≤ 80 %	36,277	539	33,021	680	30,539	650
	80 % < LTV ≤ 100 %	9,624	429	7,800	581	6,885	533
	LTV > 100 %	5,316	694	6,289	1,151	7,073	1,121
TOTAL		124,975	2,678	119,206	3,501	118,896	3,346
(*) Includes financing for home purchases granted by subsidiary company Unión de Crédito para la Financiación Mobiliaria e Inmobiliaria EFC, SAU (Credifimo).
(**) LTV calculated according to the latest available valuations. The ranges for non-performing transactions are updated in accordance with prevailing regulations.


Appendix 8 – Reconciliation of the balance sheet: public perimeter and prudential perimeter
(Millions of euros)					31-12-2025
	Public balance sheet	(-) Insurance activity	(-) Other entities within the public perimeter	(+) Adjustments and eliminations	(+) Change of consolidation method	Restricted Balance Sheet
Cash and cash balances at central banks and other demand deposits	45,828	(600)	(1)			45,227
Financial assets held for trading	5,799			6,425		12,224
Non-trading financial assets mandatorily measured at fair value through profit or loss.	21,320	(21,249)		5		76
Financial assets designated at fair value through profit or loss	5,698	(5,698)
Financial assets at fair value through other comprehensive income	71,182	(60,226)				10,956
Financial assets at amortised cost	479,096	(4,855)	(4)	405		474,642
Derivatives – Hedge accounting	1,377	(252)				1,125
Changes in the fair value of hedged items in interest rate risk hedged portfolios	(169)					(169)
Investments in joint ventures and associates	1,749				2,838	4,587
Assets covered by reinsurance contracts	60	(60)
Tangible assets	6,514	(56)	(5)	(1)		6,452
Intangible assets	5,269	(1,045)				4,224
Tax assets	17,115	(337)	(90)	50		16,738
Other assets	1,423	(111)		1,633		2,945
Non-current assets and disposal groups classified as held for sale	1,779		(145)		11	1,645
TOTAL ASSETS	664,040	(94,491)	(246)	8,519	2,849	580,671
Financial liabilities held for trading	3,133			4,053		7,186
Financial liabilities designated at fair value through profit or loss	4,273	(4,273)
Financial liabilities at amortised cost	526,391	(988)	(5)	993		526,391
Derivatives – Hedge accounting	3,999	(3,025)				974
Changes in the fair value of the hedged items of a portfolio hedged against interest rate risk	(1,235)					(1,235)
Insurance contract liabilities	79,892	(79,892)
Provisions	3,785	(2)		2		3,785
Tax liabilities	2,923	(636)		405		2,692
Other liabilities:	2,337	(3)		17		2,351
Liabilities included in disposal groups of items classified as held for sale	16		(16)
TOTAL LIABILITIES	625,514	(88,818)	(24)	5,473		542,145
Shareholders’ equity	38,962	(5,673)	(223)	3,047	2,849	38,962
Accumulated other comprehensive income	(452)					(452)
Minority interests	16					16
TOTAL EQUITY	38,526	(5,673)	(223)	3,047	2,849	38,526
TOTAL LIABILITIES AND EQUITY	664,040	(94,491)	(246)	8,519	2,849	580,671


Appendix 9 – Reconciliation of the statement of profit or loss – public and prudential perimeter
(Millions of euros)					31-12-2025
	Public perimeter	(-) Insurance activity	(-) Other entities within the public perimeter	(+) Adjustments and eliminations	(+) Change of consolidation method	Restricted scope
Interest income	18,021	(1,902)		40		16,159
Interest expense	(7,350)	1,769		(63)		(5,644)
NET INTEREST INCOME	10,671	(133)		(23)		10,515
Dividend income	61					61
Share of profit/(loss) of entities accounted for using the equity method	288				1,054	1,342
Fee and commission income	4,413	(420)		884		4,877
Fee and commission expenses	(446)	1		(21)		(466)
Gains/losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss	41	(12)		(1)		28
Gains/losses on financial assets and liabilities held for trading	292					292
Gains/losses on non-trading financial assets mandatorily measured at fair value through profit or loss	3	(3)		1		1
Gains/losses arising from hedge accounting	34	(31)				3
Exchange differences	(124)			1		(123)
Other operating income	517	(5)	(20)	23		515
Other operating expenses	(780)	5	4	1		(770)
Insurance service result	1,320	(1,320)
Net result from reinsurance contracts held	(20)	20
GROSS INCOME	16,270	(1,896)	(15)	861	1,054	16,274
Administrative expenses	(5,624)	94	3	(513)		(6,040)
Depreciation and amortisation	(791)	47	9	(64)		(799)
Provisions or reversal of provisions	(189)		(11)			(200)
Impairment/(reversal) of impairment on financial assets not measured at fair value through profit or loss or net profit or loss due to a change	(935)					(935)
Impairment/(reversal) of impairment on investments in joint ventures and associates	(56)					(56)
Impairment/(reversal) of impairment on non-financial assets	(107)		(2)			(109)
Gains/(losses) on derecognition of non-financial assets, net	30	(4)		1		27
Profit/(loss) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations	76		11	(1)		86
PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS	8,674	(1,759)	(6)	284	1,054	8,247
Tax expense or income related to profit or loss from continuing operations	(2,775)	427	1			(2,347)
PROFIT OR LOSS AFTER TAX FROM CONTINUING OPERATIONS	5,899	(1,331)	(5)	284	1,054	5,901
Profit/(loss) after tax from discontinued operations	2		(2)
PROFIT/(LOSS) FOR THE PERIOD	5,901	(1,331)	(7)	284	1,054	5,901
Attributable to minority interests (non-controlling interests)	10					10
Attributable to owners of the parent	5,891	(1,331)	(7)	284	1,054	5,891


/01	/02	/03	/04
Corporate information, basis of presentation and other information P. 17	Accounting policies P. 21	Risk management P. 46	Capital adequacy management P. 113

/05	/06	/07	/08
Appropriation of profit/ (loss) P. 116	Shareholder remuneration and earnings per share P. 117	Buying and selling of businesses P. 118	Segment information P. 119

/09	/10	/11	/12
Remuneration of “key management personnel” P. 122	Cash and cash equivalents P. 125	Financial assets P. 126	Derivatives P. 132

/13	/14	/15	/16
Investments in joint ventures and associates P. 137	Assets and liabilities under the insurance activity P. 138	Tangible assets P. 147	Intangible assets P.132

/17	/18	/19	/20
Other assets and other liabilities P. 151	Non-current assets held for sale P. 152	Financial liabilities P. 153	Provisions P. 158

/21	/22	/23	/24
Equity P. 170	Tax position P. 173	Guarantees and contingent commitments P. 177	Other significant disclosures P. 178


/25	/26	/27		/28
Interest income P. 179	Interest expense P. 180	Dividend income P. 181		Fee and commission income P. 181

/29	/30	/31		/32
Gains/(losses) on financial assets and liabilities P. 182	Other operating income and expense P. 183	Insurance service result P. 184		Personnel expenses P. 185

/33	/34	/35		/36
Other administrative expenses P. 186	Impairment of financial assets not measured at fair value P. 188	Information on fair value P. 189		Related-party transactions P. 198

/37	/38	/Appendices
Other disclosure requirements	Statements of cash flows	P. 205	Appendix 1 – CaixaBank investments in subsidiaries of the CaixaBank Group
P. 203	P. 204	P. 208	Appendix 2 – CaixaBank stakes in agreements and joint ventures of the Group
		P. 209	Appendix 3 – CaixaBank investments in associates of the Group
		P. 212	Appendix 4 – Disclosures on changes in ownership interests in 2025
		P. 212	Appendix 5 – Annual banking report
		P. 215	Appendix 6 – Foreclosed assets in Spain
		P. 216	Appendix 7 – Real estate financing
		P. 218	Appendix 8 – Reconciliation of the balance sheet: public perimeter vs restricted perimeter
		P. 219	Appendix 9 – Reconciliation of the statement of profit or loss: public perimeter vs restricted perimeter