LETTER FROM THE CEO

Whilst the backdrop for the financial sector continues to be challenging, with very low interest rates and higher than expected deleveraging, CaixaBank‘s performance in 2015 was excellent. We increased our commercial leadership, whilst simultaneously enhancing our financial results and the robustness of our balance sheet.

CaixaBank‘s business model sets it apart from its competitors, with its unique reach, intensive use of technology and highly trained team increasing its proximity to its customers, offering them an extensive range of innovative and high quality products. Our scale and commitment to appropriate technology enables us to specialise our resources to focus on helping specific segments efficiently, with maximum personalisation of our value proposition as we advise our very extensive customer base.

In 2015, we reached 13.8 million customers, increasing the funds managed by 9.1%, to €296,599 million, and our loan portfolio by 4.7%, to €206,437 million, beating the sector trends (0.7% and –4.8%, respectively) by more than 8 points in both cases.

Core operating income from the banking business (net interest income and fees) increased by 6.5%, whilst pre-impairment income, excluding non-recurring costs, grew by 15.7%, to €3,663 million. The factors explaining this improvement include the integration of the business of Barclays Bank, SAU and, above all, our intensive commercial efforts and strict cost control. Attributed profit was €814 million, up 31.4% on the previous year.

The strength of our balance sheet continues to set the bar for the sector. 2015 saw a significant reduction in non-performing loans, down €5,242 million, resulting in a 2-point improvement in the NPL ratio. Meanwhile, we had the largest capital buffer of any listed bank, with a regulatory CET1 ratio of 12.9% at year end and excellent liquidity, exceeding €54,000 million.

We have also made notable progress in our digital transformation: our active customer base of online and mobile banking customers increased by 4.8 million and 2.8 million, respectively. In 2015, 20% of funds and 13% of pension plans were contracted online. In this regard, the recent launch of imaginBank − a bank designed exclusively for mobile phones − is a decisive step forward in CaixaBank‘s digital strategy.

CaixaBank has emerged from the crisis as the leading Spanish bank. With our new 2015-2018 Strategic Plan, we will further enhance customer loyalty and burnish our corporate reputation, fostering sustainable profitability and providing our shareholders with adequate and attractive returns.