CaixaBank S A : 2021 Full Year Business Activity and Results(Open in a new window)

Business

activity

and results

January-December

2021

Contents

1. Key Group figures
2. Key information

1. Macroeconomic trends and state of the financial markets

1. Income statement and comparative proforma income statement

1. Business Activity

1. Risk management

1. Liquidity and financing structure

1. Capital management

1. Segment reporting

1. The CaixaBank share

1. Investment portfolio

1. Ratings
2. Appendices

60 Alternative performance measures

69 Reconciliation between the accounting and management information

72 Breakdown of the performance of the income statement by item

1. Adapting Bankia's financial information using CaixaBank management criteria
2. Historical income statement figures for the CABK and BPI perimeters

80 Activity indicators by region

Business activity and results: January - December 2021| 1

Note: The financial information contained in this document is unaudited and, accordingly, is subject to change. The consolidated income statement and the consolidated balance sheet and the corresponding breakdowns of those statements provided in this report, are presented under management criteria, but have still been prepared in accordance with International Financial Reporting Standards (IFRS-EU) as adopted by the European Union under the terms of Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002, as subsequently modified. In preparing these statements, Circular 4/2017 of the Bank of Spain of 6 December, as subsequently modified, has also been taken into due account in that it adapts IFRS-EU to Spanish credit institutions.

This report has been prepared from the accounting records of CaixaBank, S.A. and the other Group companies, and includes certain adjustments and reclassifications required to apply the policies and criteria used by the Group companies on a consistent basis with those of CaixaBank. For this reason, and specifically in the case of BPI, the information contained in this document does not coincide with certain aspects presented in BPI's publication of financial information. Likewise, the financial information regarding investees has been prepared primarily on the basis of estimates made by the Group's directors, hereinafter the "Company".

Figures are presented in millions of euros unless the use of another monetary unit is stated explicitly, and may be expressed as either million euros or € million. Certain financial information in this report was rounded off and, specifically, the figures shown herein as totals may differ slightly from the arithmetic sum of the individual figures given before them.

In accordance with the Guidelines on Alternative Performance Measures (APMs) published by the European Securities and Markets Authority

on 30 June 2015 (ESMA/2015/1057), the appendices hereto provide the definition of certain alternative financial measures and, where appropriate, the reconciliation with the items contained on the financial statements for the period in question.

In accordance with the Amendments to IFRS 4 and subsequent reviews, the Group has decided to apply temporary exemption from applying IFRS 9 to the financial investments of the Group's insurance firms for all periods that come before 1 January 2023, aligning its first application with the entry into force of the new IFRS 17: Insurance Contracts (expected on 1 January 2023), which will govern the presentation and measurement of insurance contracts (including technical provisions). Accordingly, these investments are measured in accordance with IAS 39 and grouped under the heading "Assets under the insurance business" on the balance sheet. To make the information more readily comparable, the Group has also grouped together the technical provisions corresponding to Unit Link and Flexible Investment Life Annuity (the part managed), which are now reported jointly under 'Liabilities under the insurance business'.

Business activity and results: January - December 2021| 2

Commercial positioning

CLIENTS

BUSINESS ACTIVITY

20.7

680,036

619,971

in customer funds (€ million)

million

Balance sheet indicators

RISK MANAGEMENT

3.6%

NPL ratio

63%

NPL

coverage ratio

0.23%

Cost of risk (12 months)

in total assets (€ million)

352,951

in loans and advances to

customers (€ million)

CAPITAL ADEQUACYLIQUIDITY

13.2%	168,349
CET1	in total liquid assets (€ million)
17.9%	320%
Total capital	liquidity coverage ratio (LCR),
	trailing 12 months
26.2%	154%
MREL	NSFR

Results, profitability and cost-to-income

ATTRIBUTABLE PROFIT/(LOSS)

(millions of euros)

COST-TO-INCOMEPROFITABILITY

57.7%	7.6%
cost-to-income ratio stripping out	12-month ROTE
extraordinary expenses (12 months)	ex M&A impacts

Business activity and results: January - December 2021| 3

Key Group figures

€ million / %	January - December	Change		4Q21	Quarter-on-
	2021		2020		quarter
PROFIT/(LOSS)
Net interest income	5,975		4,900	21.9%		1,559	(1.9%)
Net fee and commission income	3,705		2,576	43.8%		1,101	14.1%
Core income	10,597		8,310	27.5%		2,889	2.8%
Gross income	10,274		8,409	22.2%		2,563	(9.3%)
Recurring administrative expenses, depreciation and amortisation	(5,930)		(4,579)	29.5%		(1,577)	(1.9%)
Pre-impairment income	2,225		3,830	(41.9%)		888	(24.2%)
Pre-impairment income stripping out extraordinary expenses	4,344		3,830	13.4%		987	(19.2%)
Profit/(loss) attributable to the Group	5,226		1,381	-		425	(31.5%)
Profit/(loss) attributable to the Group ex M&A impacts	2,359		1,381	70.8%		337	(54.7%)
MAIN RATIOS (last 12 months)
Cost-to-income ratio	78.3%		54.5%	23.9		78.3%	2.6
Cost-to-income ratio stripping out extraordinary expenses	57.7%		54.5%	3.3		57.7%	2.5
Cost of risk1 (last 12 months)	0.23%		0.75%	(0.52)		0.23%	(0.02)
ROE 1	6.4%		5.0%	1.4		6.4%	(1.7)
ROTE1	7.6%		6.1%	1.5		7.6%	(2.1)
ROA1	0.3%		0.3%	0.1		0.3%	(0.1)
RORWA1	1.1%		0.8%	0.2		1.1%	(0.3)

	December	December	Change	September	Quarter-on-
	2021		2020	2021	quarter
BALANCE SHEET
Total assets	680,036	451,520	50.6%		685,738	(0.8%)
Equity	35,425	25,278	40.1%		35,124	0.9%
BUSINESS ACTIVITY
Customer funds	619,971	415,408	49.2%		607,331	2.1%
Customer funds, excluding the Bankia integration	458,980	415,408	10.5%		-	-
Loans and advances to customers, gross	352,951	243,924	44.7%		355,929	(0.8%)
Loans and advances to customers, gross, excluding the Bankia integration	231,935	243,924	(4.9%)		-	-
RISK MANAGEMENT
Non-performing loans (NPL)	13,634	8,601	5,032		13,955	(322)
Non-performing loans (NPL), excluding the Bankia integration	8,207	8,601	(394)		-	-
Non-performing loan ratio	3.6%	3.3%	0.3		3.6%	0.0
Provisions for insolvency risk	8,625	5,755	2,870		8,955	(330)
Provisions for insolvency risk, excluding the Bankia integration	5,006	5,755	(748)		-	-
NPL coverage ratio	63%	67%	(4)		64%	(1)
Net foreclosed available for sale real estate assets	2,279	930	1,349		2,289	(10)
Foreclosed available for sale real estate assets, ex. Bankia integration	1,096	930	166		-	-
LIQUIDITY
Total Liquid Assets	168,349	114,451	53,898		173,125	(4,777)
Liquidity Coverage Ratio (last 12 months)	320%	248%	72		304%	16
Net Stable Funding Ratio (NSFR)	154%	145%	9		151%	3
Loan to deposits	89%	97%	(8)		91%	(2)
CAPITAL ADEQUACY
Common Equity Tier 1 (CET1)	13.2%	13.6%	(0.4)		13.0%	0.2
Tier 1	15.5%	15.7%	(0.2)		15.3%	0.2
Total capital	17.9%	18.1%	(0.2)		17.9%	-
MREL	26.2%	26.3%	(0.1)		25.6%	0.6
Risk-weighted assets (RWAs)2	215,429		144,073	71,356		220,201	(4,772)
Leverage ratio	5.3%		5.6%	(0.3)		5.2%	0.1
SHARE INFORMATION3
Share price (€/share)	2.414	2.101	0.313		2.684	(0.270)
Market capitalisation	19,441	12,558	6,883		21,615	(2,174)
Book value per share (€/share)	4.39		4.22	0.17		4.36	0.04
Tangible book value per share (€/share)	3.73		3.49	0.24		3.72	0.01
Net income (ex M&A impacts) attributable per share (€/share) (12 months)	0.28		0.21	0.07		0.35	(0.07)
PER (Price/Profit, ex M&A impacts; times)	8.65		10.14	(1.49)		7.74	0.90
Tangible PBV (Market value/book value of tangible assets)	0.65		0.60	0.05		0.72	(0.07)
OTHER DATA (units)
Employees4,5	49,762		35,434	14,328		50,980	(1,218)
Branches4	5,317		4,210	1,107		6,145	(828)
Of which: retail branches in Spain	4,615		3,571	1,044		5,415	(800)
ATMs4	12,952		10,283	2,669		15,118	(2,166)

1. These ratios do not include in the numerator the results generated by Bankia before 31 March 2021, which is the recognition date of the merger for accounting purposes or, for consistency, the contribution of the incorporated RWAs or balance items in the denominator. They neither consider the extraordinary impacts associated with the merger.
2. At 31 March 2021, €66,165 million have been integrated from Bankia.
3. See the methodology used in the calculation and breakdown in 'The CaixaBank share' and 'Appendices'.
4. At 31 March 2021, 15,911 employees, 2,101 branches (of which 2,013 retail) and 5,156 ATMs have been integrated from Bankia. Does not include branches outside Spain and Portugal or representative offices.
5. Early in the fourth quarter of 2021, 1,201 employees terminated their employment within the framework of the labour agreement (2,721 additional employees at the beginning of 2022).

Business activity and results: January - December 2021| 4