Chairman Isidro Fainé

 

Economic and financial environment



CaixaBank’s 2015 Results



Obra Social “la Caixa”

Economic environment

Evolving patterns of growth Global growth Annual growth, %

Recovery in advanced economies 2.4%

3.4%

3.4%

2.4%

1.5%

2.1%

1.6%

0.9%

3.1%

0.5%

0.6%

2015

2016

-0.1% 2014

2015

2016

2014

United States

2015

2016

2014

Euro area

Japan

Slowdown in emerging countries

2014

2015

2016

7.3%

6.9%

6.5%

7.2%

7.4%

7.4%

2014

2015

2016

2014

2015

2016

China

Note: Forecasts for 2016. Source: CaixaBank Research and IMF.

India

0.1%

2014

-3.8%

-3.4%

2015

2016

Brazil

Economic environment

Spain leads the recovery in the euro area Real GDP growth

ECB balance sheet

Official interest rates

Annual growth, %

In trillion euros

%

3.2

Spain

3.2

1.2

2.8

1.0

3.0

Refinancing operations

1.5

Euro area

1.6

Germany

1.4 1.6

Portugal

1.5 1.4

0.8

Quantitative Easing (QE)

2.8

0.6

2.6

0.4

2.4

0.2 0.0

France Italy

2.2

1.1 1.3 0.6 1.1

1 Forecast.

Source: CaixaBank Research, Eurostat and ECB.

-0.2

2015 20161

Deposit facility

2.0 1.8

-0.4 12

13

14

15

16

-0.6

12

13

14

15

16

Economic environment

Spain: Gradual correction of imbalances Current account

Employment

Fiscal balance

% of GDP

In thousands

% of GDP

Forecast

1.5

1.4

Forecast

1.6

434

525

1.0

414

-3.6

-0.2

-204

-216

-5.1

-5.9 -522

-6,9 -814

-9.4 -9.5

-3.2 -1,165

-3.9 -4.3 09

10

11

12

13

14

15

16

Source: CaixaBank Research, INE and Bank of Spain.

09

-10.4

-11.0 10

11

12

13

14

15

16

09

Objective

10

11

12

13

14

15

16

Spanish financial system

Pressures on the profitability of the bank industry Sector loans1

Sector loan yields1

Sector income statement

Year-on-year growth in Dec., %

%

Percentage change 3.2

2008-15 2.9

-1.0

2.6

Interest margin

 24%

Fee income

 13%

Operating expenses

 11%

Operating margin

 30%

Net profits

 45%

-4.3

-7.1

-9.4 2013

1

2014

2015

2016

Non-financial private sector. Source: CaixaBank Research and Bank of Spain.

2013

2014

2015



 



Economic and financial environment

CaixaBank’s 2015 Results Obra Social “la Caixa”

CaixaBank’s 2015 Results

Strong commercial activity and consolidation of leadership Resources and loans (DEC-15)

Customer resources

€ 296,599 M + 9.1% Loans

€ 206,437 M + 4.7% 1

Market shares1

24.9% 20.2% 21.5% 22.6% 17.9% 15.3% 16.4%

Payroll deposits

Customer penetration

Pension deposits

27.4%

Pension plans Savings insurance

27.6%

26.1%

 70 bps

Mutual funds Deposits2 2012

Loans3

13.8 M Customers

4.8 M

2013

Active on the internet4

2014

2.8 M

As of Dec-15. Source: own calculations based on FRS Inmark, Bank of Spain and Inverco. 2 Sight + Term ( other resident sectors). 3 Other resident sectors. customers in the last 2 months.

4 Active

28.3%

2015 Active on mobile4

CaixaBank’s 2015 Results

Improvement in operating results Recurring pre-impairment income Million euros

Net interest income Million euros

4,155

Profit attributable to the Group Million euros

Provisions and write-offs - € 2,516 M

4,353 3,663 3,167

814 620 + 4.8%

+ 15.7%

+ 31.4%

Badwill Barclays + € 602 M

Extraordinary expenses DEC-14

DEC-15

DEC-14

DEC-15

DEC-14

DEC-15

- € 607 M

CaixaBank’s 2015 Results

Balance sheet strength Strong risk management and liquidity

Solvency

Non-performing loans

Common Equity Tier 1 (CET1 ratio)

In M€

NPL ratio

17,100

7.88% DEC-14

Adding real guarantees

Liquidity (in M€) Loans / Deposits

11.55%

- 23.5%

- 1.8 pps

Coverage

12.90%

22,342

DEC-15

56% 128%

54,090 106.1%

9.50%

9.31% REGULATORY

FULLY LOADED

Capital requirement

Total capital

Leverage ratio

15.9%

5.75%

CaixaBank’s 2015 Results

Balance sheet strength Surplus in regulatory CET1 ratio, listed Spanish banks Percentage points difference between CET1 ratio and required regulatory ratio

3.46

3.45

Peer 1

3.1

Peer 2

2.89

Peer 3

2.64

Peer 4

2.4

Peer 5

2.35

Peer 6

1.95

Peer 7

Includes BBVA, Bankia, Bankinter, Liberbank, Popular, Sabadell, Santander

The largest capital surplus in the sector Surplus CET1 ratio as of Sep-2015 in percentage points in relation to the requirements set by the ECB. Source: banks’ own publications.

CaixaBank’s 2015 Results

BPI – Voluntary Tender Offer Strong market position in Portugal Current stake of CaixaBank

Price offered (per share)

44.1% € 1.113

Conditions:   

Removal of current voting cap Reaching ownership > 50% Ordinary regulatory approvals

Closing expected for 3Q 2016

1

€ 40,700 M € 24,300 M € 35,700 M 10.0 % 4.6 %

Assets Net loans Customer funds

BPI branches in Portugal

15

(DEC-2015)

13

48

Azores

108

CET1 fully loaded NPL ratio

12

27

47

13

26

Madeira

customer by #3 by # 5 funds assets

13 30

15 22

4

147

597 1,366 1.7 M 5,899

Branches1 ATMs Customers Employees

7

10

< 10 40

10 - 24

25 - 49 > 50

Total number of branches as of Dec-15. Includes representative offices and international branches. Regional break-down based on number of branches as of Jun-2015 (635).

11

28

CaixaBank’s 2015 Results

Stock price evolution Stock price evolution including dividends

Dividend yield in 20153

Oct, 10th 2007 to Dec, 31st 2015

2015

5.0%

0.2%

4.0%

-2% -23% -22%

3.6%

Spanish banks1

(Dec,

31st)

1 Weighted average

DEC-13

20%

0.93x

Dividend paid in 2015

36%

Euro area banks2 DEC-15

by stock market capitalization of comparable Spanish banks. Stoxx Banks index. 3 FY2015 dividends divided by the stock price as of Dec, 31st 2015. Source: Bloomberg, Dec, 31st 2015. 2 Euro

OCT-07

-30% -60%

Price to tangible Book value

Free float evolution

€ 0.16/share

Post exchangeable4

4 Considering Criteria’s

46%

€750M exchangeable bond for shares of CABK

CaixaBank’s 2015 Results

Shareholder’s remuneration

0.04 €  FY 2015

FY 2016

0.04 € 

Dividend / Share

Cash

SEP 2015

DEC 2015

0.04 €  Dividend / Share

MAR 2016



Quarterly dividends



3 cash payments + 1 dividend/share



Cash payout  50% of the consolidated profit

0.04 € Cash

JUN 2016

Expected

Strategic Plan 2015-2018

Progress towards goals

Quality and reputation

5

strategic pillars

Committed to trustworthy and profitable banking

Profitability

Capital optimisation

Digitalisation

Human capital



Economic and financial environment



CaixaBank’s 2015 Results

 

Obra Social “la Caixa”

Obra Social

2015 and 2016 Budget 2015 Budget

2016 Budget

Million euros

Million euros

336

336

313

500

56

Social

134 67

Culture & Education

41

309

56

53 Research Excellence

46,209 activities (2015)

500

Social

130 67

Culture & Education

41

61 Research Excellence

9.9 M beneficiaries (2015)

Obra Social

Key programmes in 2015

CaixaProinfancia 61,493 Children Comprehensive end-of-life care 18,046 Patients Fundación de la Esperanza

1,552

Beneficiaries

Incorpora 23,626 Job opportunities 8,723 Companies Elderly People 803,969

Beneficiaries in 2015

Social Housing 33,084

Social housing stock

CaixaForum CosmoCaixa Travelling exhibitions Palau Macaya

>5M

Visitors/year

Cultural activities

398 493

Conferences Concerts

EduCaixa

>2.3 M

Grants

Students

8,887

Schools

191

Grants

Thank you

Shareholders' Annual General Meeting

Shareholders' Annual General Meeting Chief Executive Gonzalo Gortázar

 

FY 2015



CaixaBank’s business model



CaixaBank, a different bank

FY 2015

CaixaBank: FY key points

1

Growth while increasing market shares

2

Improvement in results

3

Strengthened balance sheet

Barclays’ integration

FY 2015

Barclays’ integration



Brings in

€33.4 Bn of

3

Higher and ahead of schedule cost synergies

≈165,000

In €M

2008

2

retail customers

Premier & Private Banking

business and significant customers

Execution time1



≈455,000

10 months

2010

6 months

Months between the closing or purchase agreement and technological integration. Initial target.

2011-12

4 months

2015

2016

2012-13

6 months

Target2

70

Achieved

115

Target2

150

Estimated

189

2014-15

5 months

4.5 months

FY 2015

Sustained growth in customer funds In € Bn

2015

YTD

Total customer funds

296.6

9.1%

Funds on balance sheet

216.8

4.6%

116.8

24.9%

Time deposits1

60.9

(19.4%)

Insurance

34.4

6.7%

79.8

23.8%

Mutual funds2

51.3

36.9%

Pension plans

23.2

16.2%

Customer funds

+€ 24.8 bn

Industry3

+9.1%

+0.7%

Of which: Demand deposits

Off-balance sheet funds Of which: AuM

1 Includes

retail debt securities. category includes SICAVs and managed portfolios besides mutual funds. 3 CaixaBank Research estimate. 2 This

YTD (in €M):

+23,258 +13,839 +5,390 -14,679 Time deposits 1

Mutual funds

Insurance & pension plans

Demand deposits

FY 2015

Credit growth: Barclays positive contribution In € Bn

2015

YTD

Total loans

206.4

4.7%

Loan book

Loans to individuals

121.0

8.7%

+ € 9.3 Bn

89.4

11.1%

Industry1

+4.7%

-4.8%

Of which: Home purchases

Loans to businesses

71.6

YTD (in €M):

+9,644

(0.9%) +3,606

Of which: Real estate developers

9.8

(30.2%)

13.8

1.8%

184.3

7.7%

Public Sector Performing loans (ex RE)

1 CaixaBank Research

estimates (credit for private and public sectors).

+246 -4,244 Real estate

Public sector

Businesses ex RE

Individuals

FY 2015

Improvement in results In € M

Net interest income Net fees and commissions Income from investments & associates Gains on financial assets & exchange rate dif. Other operating income & exp Gross income Recurring expenses Pre-impairment income without extr. exp. Extraordinary operating expenses Impairment losses & others Gains/losses on assets disposals & others Pre-tax income Taxes and minority interests Profit attributable to the Group

2015

YoY (%)

4,353

4.8%

2,013

10.3%

578

17.7%

867

35.5%

(85)

(50.4%)

7,726

11.3%

(4,063)

7.7%

3,663

15.7%

(543)

--

(2,516)

(2.4%)

34

--

638

215.6%

176

--

814

31.4%

 Increase in banking

revenues (NII and net fees) • NII positive evolution (despite the

adverse market context and the removal of floor clauses) • Net fees growth underpinned by

AuM and insurance fees



Good evolution of gains on financial assets

Gross income

+11.3% YoY

FY 2015

Results improvement In €M

Net interest income Net fees and commissions Income from investments & associates Gains on financial assets & exchange rate dif. Other operating income & exp Gross income Recurring expenses Pre-impairment income without extr. exp. Extraordinary operating expenses Impairment losses & others Gains/losses on assets disposals & others Pre-tax income Taxes and minority interests Profit attributable to the Group 1

2015

YoY (%)

4,353

4.8%

2,013

10.3%

578

17.7%

(-1.2% on an homogeneous basis1)

867

35.5%

and synergies contribution

(85)

(50.4%)

7,726

11.3%

(4,063)

7.7%

3,663

15.7%

(543)

--

(2,516)

(2.4%)

34

--

638

215.6%

176

--

814

31.4%

In comparable terms: on an homogenous basis and without extraordinary expenses related to labour agreements.

 Contained expenses



Cost-to-income ratio improvement: 52.6% (-2pp YoY)

Pre-impairment income without extraordinary expenses

+15.7% YoY

FY 2015

Results improvement In €M

Net interest income Net fees and commissions Income from investments & associates Gains on financial assets & exchange rate dif. Other operating income & exp Gross income Recurring expenses Pre-impairment income without extr. exp. Extraordinary operating expenses Impairment losses & others Gains/losses on assets disposals & others Pre-tax income Taxes and minority interests Profit attributable to the Group

2015

YoY (%)

4,353

4.8%

2,013

10.3%

578

17.7%

867

35.5%

(85)

(50.4%)

7,726

11.3%

(4,063)

7.7%

3,663

15.7%

(543)

--

(2,516)

(2.4%)

34

--

638

215.6%

176

--

814

31.4%

 High level of impairments,

with cost of risk improvement

Cost of risk (impairments/credit)

1.00% Serie 1

0.73%

2014

2015

FY 2015

Results improvement In €M

Net interest income Net fees and commissions Income from investments & associates Gains on financial assets & exchange rate dif. Other operating income & exp Gross income Recurring expenses Pre-impairment income without extr. exp. Extraordinary operating expenses Impairment losses & others Gains/losses on assets disposals & others Pre-tax income Taxes and minority interests Profit attributable to the Group 1

Profit attributable/tangible common equity.

2015

YoY (%)

4,353

4.8%

2,013

10.3%

578

17.7%

867

35.5%

(85)

(50.4%)

7,726

11.3%

Non-core RE

€ -1,198 M

(4,063)

7.7%

Investments

€ 406 M

3,663

15.7%

(543)

--

(2,516)

(2.4%)

34

--

638

215.6%

176

--

814

31.4%

Profit attributable € to the Group Banking & insurance (ex non-core RE)

RoTE1

814 M € 1,606 M

4.3% 3.4%

2014

2015

FY 2015

Good risk management Accelerating reduction of NPL ratio

High level of commercial activity in foreclosed assets

In € M and %

In € M and %

NPL ratio

11.2%

Commercial activity

9.9%

€

1,312 M

sales1

€

765 M

rentals1

7.9% 28,108

Foreclosed assets portfolio

22,342

17,100

NPL stock

€ JUN-13

Barclays proforma included

-40% 1

DEC-14

DEC-15

Barclays proforma included

Reduction of NPL stock since JUN-13

Sales at sales price and rentals at net book value.

2

7,259 M

Foreclosed assets available for sale

€

2,966 M

Rental portfolio

57.6% Coverage ratio2

Improving RE market (stabilization of prices and higher demand)

Difference between cancelled debt and net book value.

FY 2015

Comfortable levels of liquidity and solvency

€ 54,090 M

15.7%

Liquidity

1

Of assets

12.9%

11.55%

CET1 phase-in CET1 fully loaded

 Increase in balance sheet liquidity

 Organic capital generation

 Our excellent liquidity position

 Comfortable levels of solvency,

enables new credit activity

also for total capital (15.9%)

Surplus over SREP regulatory minimum requirements of Euro area quoted banks

Among the largest surplus for listed banks1

FY 2015

Swap agreement Group structure after the transaction agreement

Industrial stakes

1 2 *

Optimizing capital, anticipating the 2015-18 Strategic Plan’s goal

CaixaBank’s risk focused on the euro area

Considering Criteria’s € 750M exchangeable bonds into CaixaBank shares in November 2017.

3 4

Maintaining commercial alliances Free float will increase (5%) up to 51%*

FY 2015

We ended 2015 achieving key goals in a market situation more difficult than expected

 Barclays’ integration  Growth while increasing market shares  Improvement in results  A strengthened balance sheet

Thanks to our

differentiated business model



 



FY 2015

CaixaBank’s Business model CaixaBank, a different bank

CaixaBank

Our business model

Scale & capillarity

IT & digitalization

Advisory capabilities

Wide range of products

Customer proximity/ knowledge

Mobility (digital signature)

Focus on training & empowerment

Specific & tailored

Business model

The largest branch network in Spain, continuously evolving Distribution of branches by autonomous community

A living branch network that we want to keep 70

47 188

199

From 2007 to 2015: readjustment and specialization process

157

26

1.380

87

250 637 64

207

153



5,228 branches1

443 917 258

(+2,564 & -2,816) 

122

Fulfilling the needs of an extra 30% of customers

4 Ceuta 2 Melilla 

9,631 1

End-point: similar number of branches

5,211 branches in Spain

ATMs

With a specialized network

38

Private Banking

91

Business centres

576

AgroBank

159

HolaBank

17

International

13

A branches (big cities)

Business model

Constant adjustment to customer needs

A branches & Stores in big cities Target:

200 branches



Relationship model based on transparency (closer to the customer)



Expansion of the specialist model (more advisory services)



More commercial proactivity (with IT support)



Improvement in quality and customer experience

in 2 years

CaixaBank

Our business model

Scale & capillarity

IT & digitalization

Advisory capabilities

Wide range of products

Customer proximity/ knowledge

Mobility (digital signature)

Focus on training & empowerment

Specific & tailored

Business model

Steady progress of our digital strategy

Sales force with mobile devices

Digital sales

13,100

20%

Smart PCs deployed

Mutual funds

2.3 M

18%

Digital signatures

Personal loans

77%

13%

Digitally signed documents

Pension plans

Leaders in adopting mobility solutions Note: data as of 2015.

CaixaBank

Our Business model

Scale & capillarity

IT & digitalization

Advisory capabilities

Wide range of products

Customer proximity/ knowledge

Mobility (digital signature)

Focus on training & empowerment

Specific & tailored

Business model

Human capital: our main asset

The most prepared and dynamic team to provide advisory services Postgraduate studies in financial advisory 7,123 postgraduate employees

Risk school Postgraduate Certificate & Diploma

Executive Development Center Leadership model development

CaixaBank

Our business model

Scale & capillarity

IT & digitalization

Advisory capabilities

Wide range of products

Customer proximity/ knowledge

Mobility (digital signature)

Focus on training & empowerment

Specific & tailored

Business model

A market leader “financial supermarket” with a wide range of products and services

Life & non-life insurance and pension plans

Credit & debit cards

Consumer finance

Asset management

Highly competitive businesses we have retained and enhanced throughout the crisis

Payment systems

Microcredits for households and entrepreneurs

Business model

Increasing market shares 1st

Mutual funds

17.9%

market share by assets

1st

Savings insurance & pension plans

15.3% 14.0%

14.1%

19.7%

20.8%

22.2%

18.1%

10.6%

21.5% Pension plans 22.6% Savings insurance 17.4% Life-risk insurance

16.0%

28.2% 2010

1st

2012

2013

2014

DEC-15

2010

1st

Credit card turnover

2012

2013

2014

DEC-15

PoS turnover

22.8% 20.9%

21.1%

26.1%

21.4% 23.8%

24.0%

2012

2013

24.8%

21.2%

177% 2010

Health insurance

2012

2013

2014

Sources: INVERCO, ICEA, Servired, 4B and Euro6000 .

DEC-15

2010

2014

DEC-15

A big asset in a zero interest rate market



FY 2015



CaixaBank’s business model

 

CaixaBank, a different bank

A different bank

CaixaBank, a bank with a social drive

Financial inclusion



Top nationwide coverage



Maintaining presence in smaller villages



European benchmark in microfinance

€588 M Microcredits granted in 2015

A different bank

CaixaBank, a bank with social drive

Financial inclusion Development of savings and retirement plans



Retirement plans are the starting point of “la Caixa” Group



Unfulfilled key need



Raising awareness and bringing solutions In 2015

180 meetings with 18,000 customers

Caixafu[Tu]ro

A different bank

CaixaBank, a bank with a social drive

Financial inclusion Development of savings and retirement plans Active housing policies

“Case-by-case management, tailored solutions, support throughout the process” 

Aid plans to individuals (since 2009)



Enforcement of the Code of Good Practice

158,000 current supporting actions 22,600 dations in payment (70% remain in the house, renting)

33,000 social and affordable rental housing (in cooperation with “la Caixa” Banking Foundation)

A different bank

CaixaBank, a bank with a social drive

Financial inclusion Development of savings and retirement plans Active housing policy

Social engagement beyond financial activity



“Decentralized” welfare programs: 13,000 projects



Over 7,000 CaixaBank volunteers collaborate with the main programmes of “la Caixa” Banking Foundation

A different bank

Solid values: quality, trust and social commitment

CaixaBank’s Strengths 

Business model



Social drive



Capital

Shareholder base

“Committed to trustworthy and profitable banking”

Thank you

Shareholders' Annual General Meeting