Bankia S A : Copy of the CEO´s speech at the 2021 Ordinary General Meeting of Shareholders.

Good morning, ladies and gentlemen.

First of all, thank you for joining us here at this General Meeting.

I intend to briefly review financial year 2020 as a frame of reference for the financial statements presented at this meeting for your approval.

My speech will be divided in three parts.

I will start with some comments on the environment in which we operated in in 2020.

After that, I will discuss our business performance.

Lastly, I will consider the performance of Bankia's balance sheet and income statement.

1. Environment in 2020

Last year was dominated by the Covid-19 crisis and its painful impact on the lives of many people around the world and in our country.

The pandemic has had a very adverse impact on the economy, resulting in the worst recession since the Second World War.

In the eurozone, GDP dropped almost 7%. In this context, the economic policy response has been key to mitigating the effects of the crisis. The historic agreement to set up a 750 billion euro Recovery Fund, coupled with the SURE Employment Programme and other additional measures, brought the overall stimulus package for the European economy to 1.3 trillion euros.

In Spain, GDP fell by 11%, above the European average, while measures were taken to alleviate the impact of the drop in GDP on economic activity.

Those measures include temporary employment adjustment programmes (ERTEs) and government guarantees for loans to businesses (ICO facilities).

Despite the swift economic policy response, the number of people in employment in Spain fell by 357,000 in 2020, reversing the positive job creation trend seen in recent years.

The fall in employment would have been much greater had it not been for the 757,000 employees furloughed under the ERTE scheme as of the end of 2020.

Another very important factor for our income statement, besides the economic environment, is the level of interest rates-specifically, the 12-month Euribor, which affects the profitability of our credit portfolio in particular.

During the pandemic, the European Central Bank's monetary policy has been especially expansionary, driving the 12-month Euribor down to an all-time low of -0.5%.

As I will explain in the last part of my speech, this decline in Euribor has had an adverse impact on our net interest income for 2020.

In this context, Bankia worked hard throughout last year to help to reduce the impact of the crisis on society.

Throughout the pandemic, we have continued to deliver services to our customers, while at the same time meeting the new financial needs of both households and businesses.

The measures we have taken to assist our household and families include advance payment of pensions and unemployment benefits and moratoria on mortgage and consumer loans for all interested customers.

Specifically, we granted 113,000 loan moratoria for a total of 5,625 million euros.

To assist businesses, SMEs and self-employed entrepreneurs, we focused on extending the term

of working capital facilities and granting new credit, much of it backed by ICO guarantees.

We granted 54,000 ICO-backed loans, with a drawn balance of over 8.2 billion euros.

In short, we completed what may well have been the most complicated year in our history, in which Bankia worked to support society at large while at the same time ensuring satisfactory business and income statement performance.

2. Business performance

I now turn to the performance of our business over the course of 2020. I shall focus on:

• • Our most relevant credit portfolios, i.e. businesses and mortgages;

• • Payment services; and

• • The channelling of savings into mutual funds.

I shall start with lending to businesses. As the accompanying table shows, 2020 saw strong growth in our portfolio, which increased by 6 billion euros, i.e. approximately 17%, year-on-year.

This above-industry-average growth resulted in a 33bp gain in our market share, which ended the year at 8.17%.

The main driving force behind lending to businesses was the granting of ICO-guaranteed loans, in which Bankia was especially active. Whereas the guarantees initially allocated to us gave us a share of 7.1%, the share eventually granted was 9.4%, which is much higher than our natural market share in the businesses segment.

The highlight in the portfolio of mortgages to individuals is the 14% growth in new originations. Despite the sharp fall in GDP, we granted 3,348 million euros of new mortgages, the largest amount in Bankia's history. This growth, well above the industry average, brought our market share to 7.97%, an increase of 117bp.