CaixaBank S A : 3Q 2020 results presentation. Webcast

3Q 2020

Results

30 October 2020

Disclaimer

The purpose of this presentation is purely informative and should not be considered as a service or offer of any financial product, service or advice, nor should it be interpreted as, an offer to sell or exchange or acquire, or an invitation for offers to buy securities issued by CaixaBank, S.A. ("CaixaBank") or any of the companies mentioned herein. The information contained herein is subject to, and must be read in conjunction with, all other publicly available information. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information set out in the relevant documentation filed by the issuer in the context of such specific offer or issue and after taking any professional or any other advice as it deems necessary or appropriate under the relevant circumstances and not in reliance on the information contained in this presentation.

CaixaBank cautions that this presentation might contain forward-looking statements concerning the development of our business and economic performance. Particularly, the financial information from CaixaBank Group for the year 2020 related to results from investments has been prepared mainly based on estimates. While these statements are based on our current projections, judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. Such factors include, but are not limited to, the market general situation, macroeconomic factors, regulatory, political or government guidelines and trends, movements in domestic and international securities markets, currency exchange rates and interest rates, changes in the financial position, creditworthiness or solvency of our customers, debtors or counterparts, etc. These risk factors, together with any other ones mentioned in past or future reports, could adversely affect our business and the levels of performance and results described. Other unknown or unforeseeable factors, and those whose evolution and potential impact remain uncertain, could also make the results or outcome differ significantly from those described in our projections and estimates. Likewise, this presentation contains information related to the joint merger plan for the merger of Bankia, S.A. (absorbed company) into CaixaBank (absorbing company) announced on 18 September 2020. The completion of the merger is not guaranteed as it still requires the approval of the shareholders' meetings of both entities and the authorisation of the relevant regulatory authorities. CaixaBank can give no assurance that the potential benefits identified when formulating the joint merger plan and made public will materialise or that the Group will not be exposed to operational difficulties, additional expenditures and risks associated with the integration.

Statements as to historical performance, historical share price or financial accretion are not intended to mean that future performance, future share price or future earnings for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast. In addition, it should be noted that although this presentation has been prepared based on accounting registers kept by CaixaBank and by the rest of the Group companies it may contain certain adjustments and reclassifications in

order to harmonize the accounting principles and criteria followed by such companies with those followed by CaixaBank. Accordingly, and particularly in the case of Banco Português de Investimento ("BPI"), the relevant data included in this presentation may differ from those included in the relevant financial information as published by BPI.

In particular, regarding the data provided by third parties, neither CaixaBank, nor any of its administrators, directors or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents in by any means, CaixaBank may introduce any changes it deems suitable, may omit partially or completely any of the elements of this presentation, and in case of any deviation between such a version and this one, CaixaBank assumes no liability for any discrepancy.

In relation to Alternative Performance Measures (APMs) as defined in the guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 30 June 2015 (ESMA/2015/1057), this presentation uses certain APMs, which have not been audited, for a better understanding of the company's financial performance. These measures are considered additional disclosures and in no case replace the financial information prepared under the International Financial Reporting Standards (IFRS). Moreover, the way the Group defines and calculates these measures may differ to the way similar measures are calculated by other companies. Accordingly, they may not be comparable. Please refer to the Glossary section of the Business Activity and Results Report January - September 2020 of CaixaBank for a list of the APMs used along with the relevant reconciliation between certain indicators.

This presentation has not been submitted to the Comisión Nacional del Mercado de Valores (CNMV - the Spanish Stock Markets regulatory authority) or to any other authority in any other jurisdiction for review or for approval. Its content is regulated by the Spanish law applicable at the date hereto, and it is not addressed to any person or any legal entity located in any other jurisdiction and therefore it may not be compliant with the relevant regulations or legal requirements as applicable in any such other jurisdiction.

Notwithstanding any legal requirements, or any limitations imposed by CaixaBank which may be applicable, permission is hereby expressly refused for any type of use or exploitation of the content of this presentation, and for any use of the signs, trademarks and logotypes contained herein. This prohibition extends to any kind of reproduction, distribution, transmission to third parties, public communication or conversion by any other mean, for commercial purposes, without the previous express consent of CaixaBank and/or other respective proprietary title holders. Any failure to observe this restriction may constitute a legal offence which may be sanctioned by the prevailing laws in such cases.

Presentation prepared with Group data at closing of 30 September 2020, unless otherwise noted	2
Hereinafter "CABK" refers to CaixaBank stand-alone while "CABK Group" or "Group" refers to CaixaBank Group

CONTENTS

I.

3Q20 Highlights

II.

III.

3Q20 Quarterly review

Final remarks

3

3Q20 HIGHLIGHTS

A strong quarter with progress on all fronts

			MARKET SHARES	23.2% ⎢16.4%
		Gaining market share while positive activity trends continue through Q3	% and ytd:
		L/T SAVINGS(1) ⎢	(+66 bps ytd) (+103 bps ytd)
			BUSINESS LENDING

Credit metrics remain broadly stable despite bulk of moratoria resuming payment obligations

-with lower CoR after front-loading of COVID provisions

% NPL ⎢ NPLs, % qoq	3.5% ⎢-1.5%
CoR annualised	40 bps ⎢84 bps
3Q ⎢9M

Core revenue strength and significant cost savings boost core operating income

-on track to achieve ambition of positive jaws in 2020e

CORE REVENUES

3Q qoq ⎢9M yoy

RECURRENT COSTS

3Q qoq ⎢9M yoy

+3.7% ⎢-0.7%-1.5%⎢-3.1%

		Solvency and MREL further reinforced	% CET1 PF (2) ⎢ % CET1 PF(2)	⎢
		-with % CET1 PF for Comercia at 12.2% (ex transit. IFRS9) and MDA PF for Comercia and AT1 issue at ~460 bps	ex transitional IFRS9	12.7% 12.2%
		MDA PF(3)	458 bps (+89 bps qoq)

Net income of €522M in 3Q (-19% yoy ⎢+352% qoq) and €726M in 9M (-43% yoy) with RoTE (ttm) at 5%

(1) Including mutual funds, pension plans and savings insurance. (2) PF Comercia disposal closed in October (+20 bps accruing 43% dividend pay-out).(3) PF Comercia disposal and AT1 issuance, both in October.

4

3Q20 HIGHLIGHTS

Gaining market-share throughout the 2020 crisis

Market shares (%) and ytd (bps) in key products(1) (Spain)

23.2%		24.2%
Long-term savings(2)		Life-risk insurance(3)
+66 bps		+320 bps(4)

16.2%		16.4%
Credit(5)		Loans to businesses(5)
+20 bps		+103 bps

Increased relational client base

Relational individual clients(6) (Spain), % of total

+1.8 pp

63.3%

61.5%

SEP-19SEP-20

Market-share gains and customer loyalty contribute to revenue sustainability

1. Sources: BoS, INVERCO, ICEA. Latest available data. (2) Own calculations based on INVERCO and ICEA data. Market share in Spain in mutual funds managed by CaixaBank AM, pension plans and estimate in saving insurance market share. (3) Own calculations based on ICEA data. It is noted that the appropriate figures presented for the evolution of life-risk market share between June 2010 and June 2020 contained in page 20 of the presentation of the merger agreement dated 18 September 2020 should have been 10% and 24% respectively, yielding an increase in the life-risk market share during that period of +14 pp. (4) Evolution yoy. (5) Credit to other resident sector. Own calculations based on Bank of Spain data. (6) Individual clients

with 3 or more product families. 2019 data restated using the same criteria to calculate 2020 figure (revised in December 2019).	5

3Q20 HIGHLIGHTS

Positive activity trends continue through Q3

-despite summer and COVID flare-ups

	Credit card turnover
	Weekly credit card turnover(1), % yoy
25%			Spanish cards
0%			-5%
-25%
-50%			-65%
-75%			Foreign cards
-100%
19-Jan	19-Apr	19-Jul	19-Oct

Net inflows into long-term savings

Net inflows into long-term savings(2)	(ex markets), €M
			9M20
			+41% yoy
	777		686
594
		271
3Q19	1Q20	2Q20	3Q20

1. Including transactions with Spanish/foreign credit/debit cards at CABK PoS terminals (including e-commerce). Source: CaixaBank Research.
2. Including savings insurance, mutual funds (with managed portfolios and SICAVs) and pension plans.

CABK ex BPI - Selected indicators

Loan production - Households

New mortgage + consumer lending production, €Bn

			9M20
			-29%yoy
3.3	3.1		2.9
		1.9
3Q19	1Q20	2Q20	3Q20

Protection insurance

New MyBox contracts, in thousands

			9M20
			+24% yoy
	132.3
			108.2
74.3		60.7
3Q19	1Q20	2Q20	3Q20

6

3Q20 HIGHLIGHTS

Reduced NPL formation in the quarter

despite bulk of moratoria resuming payment obligations

NPLs reduced in 3Q
NPLs(1), €Bn		% NPL stable at low levels
	-1.5%	NPL ratio, % eop
		11.7%
9.2		8.6%	9.7%
	9.1
		7.9%
			6.9%
				6.0%
				4.7%
				3.6%	3.5%
JUN-20	SEP-20	2012 2013 2014 2015 2016 2017 2018 2019 S-20
With improvement	Residential	Consumer	Business	Other(2)
across-the-board	mortgages	lending	lending
NPLs, % qoq	-1.1%	-6.5%	-1.4%	-0.8%

1. Includes non-performing contingent liabilities (€352M in 3Q20).
2. Includes other credit to individuals (ex consumer lending), credit to the public sector and contingent liability NPLs.
3. Additionally, all moratoria to businesses (Spain) related to RDL 25/2020 and RDL 26/2020 face interest payment obligations since day one.
4. Including expired deferrals that already resumed normal installments.

Bulk of moratoria in Spain resumed payment obligations

Moratoria to individuals facing payment obligations in Spain(3), in % of total

97%

Resumed payment obligations(4)

~ €10Bn		97%
			of those being billed
				honour their obligations

Good payment performance of loan-moratoria

Early and pro-active collection management of expired deferrals

Re-organised recovery unit with increased capacity

7

3Q20 HIGHLIGHTS

Lower CoR after front-loading of COVID provisions in 1H20

-while maintaining a prudent stance

Macroeconomic outlook

-Spain

Spain Real GDP(1), rebased to 100=FY19

105

100

BoS (base case)

95Q2 base case (CABK)

90Q3 base case (CABK)

Q3 adverse (CABK)

85

2017	2018	2019	2020E	2021E
Cumulative	BoS	CABK	BoS	CABK
base case	base case	adverse	adverse
GDP growth
2020e-21e, %	-4.0	-5.0	-9.0	-9.9

Q3 CoR better than expected and below 1H20

-while further reinforcing strong NPL coverage

FY20e CoR, bps		% NPL coverage(4)		65%
						63%
90
60-90			0-27	58%
60				10			~€6 Bn
			53	55%
							Loan-loss allowances
			54%
								+21% ytd / +2% qoq

FY20E CoR	1H20(2)	3Q20(3)	4Q20E	YE18	YE19	Mar-20	Jun-20	Sep-20
Guidance

COVID-19 reserve build	1Q	2Q	3Q		9M20
front-loaded in 1H20									€1,161 M
			400	755	6
COVID-19 reserve, €M

2020e CoR guidance on track with reassuring Q3 trends

1. Bank of Spain macro forecasts as of 10 September (it does not consider any impact from "New Generation EU") vs. CaixaBank Research macro forecasts as of October 2020. Refer to the appendix for additional details on IFRS9

macroeconomic scenarios. (2) LLCs in 1H20 over average loans and contingent liabilities in 1H20. (3) LLCs in 3Q20 over average loans and contingent liabilities in 3Q20. (4) Ratio between total impairment allowances on loans to customers and	8
contingent liabilities over non-performing loans and advances to customers and contingent liabilities.

3Q20 HIGHLIGHTS

Revenue resilience and cost containment boost core operating income

Core revenues recover while recurrent expenses keep falling

Core revenues, recurrent expenses and core operating income on a quarterly basis, €M

2,200

Core revenues

2,094

Driving core operating income growth and return to positive jaws

Core operating income(1), €M

Core operating jaws(2), in pp

1,900

Recurrent costs

Core operating income(1)

+2.7%

+2.4 pp

1,600								930	928	954
							871
1,300					642	705
			636
		575	477
										1,140
1,000	430
700
	3Q11	3Q12	3Q13	3Q14	3Q15	3Q16	3Q17	3Q18	3Q19	3Q20

2.6	2.7	2.6	2.7
9M17	9M18	9M19	9M20

+0.8 pp

-3.5 pp

9M18 9M19 9M20

	Core revenues	-0.7%		Recurrent costs	-3.1%		Non-NII Core
	9M yoy, %		9M yoy, %		revenues, 9M % yoy +1.2%

1. Core revenues minus recurrent operating expenses.
2. % Growth in core revenues minus % growth in recurrent expenses.

On track for a return to positive core operating jaws in 2020e

9

3Q20 HIGHLIGHTS

Strong solvency position further reinforced -widening buffers over SREP

Solvency and MREL further reinforced -with % CET1 PF(1) at 12.2% and MDA PF(1) c.460 bps

One of the lowest SREP among peers

Ratios PF(1) in % of RWAs vs requirements, as of 30 September 2020

% CET1 PF
⎢% CET1 PF ex	12.7% ⎢12.2%
Transitional IFRS9
		SREP 8.10%

% Total	17.0%
Capital PF
		SREP 12.26%
% MREL PF ⎢
24.4% ⎢20.9%
% Sub-MREL PF
		Req. 22.70% ⎢16.77%

MDA buffer bridge, bps

+89 bps

458

				+32	(27)	411	+47
369		+37		Comercia	Dividend		Capital
		disposal(3)(4)	accrual		optimisation
					(43%)		(AT1 issue)(4)
	3Q generation(3)
		+ IFRS9 adj.

2Q20	3Q20 PF	3Q20 PF
	EX-AT1 ISSUE	POST AT1 ISSUE

8.10%

2020 CET1 SREP(2)

€750M AT1 issue

>€4.1Bn Demand (5x) 5.875% Coupon

3rd CABK AT1 issue

1st Spanish bank to issue AT1 to fully optimise P2R

2020 CET1 SREP, entities in SX7E(2)(5)

Peer 1			7.7%
Peer 2					8.0%
CaixaBank					8.1%
Peer 3							8.4%
Peer 4						8.5%
Peer 5						8.6%
Peer 6						8.6%
Peer 7							8.9%
Peer 8							8.9%
Peer 9								9.0%
Peer 10								9.0%
Peer 11															9.1%
Peer 12										9.1%
Peer avg.																	9.2%
Peer 13																		9.2%
Peer 14												9.3%
Peer 15																				9.6%
Peer 16														9.6%
Peer 17															9.7%
Peer 18																											10.3%
Peer 19																				10.4%
Peer 20																				10.5%
Peer 21																			10.6%

Facing the crisis from a reinforced position of strength

-Expect to resume dividend distribution once supervisory recommendation is removed

1. PF Comercia disposal (all ratios and MDA) and PF AT1 issuance (MDA and all ratios except for CET1), both transactions in October. (2) Based on current 2020 SREP requirement (including the application of Article 104a of CRD V).

(3) Excluding dividend accrual. (4) Transactions carried out in October. (5) Peer group includes entities in Eurostoxx Banks index (SX7E) as of 30 September 2020. Sources: based on information reported by companies. SREP at Group level.	10

3Q20 HIGHLIGHTS

Merger agreement with Bankia: expected timetable on track

	2020		Indicative timetable of the transaction
	18 SEPTEMBER	Transaction announcement	
			Boards approved remaining merger documentation	
Creating the leader in Spanish banking and insurance		23 OCTOBER	and called shareholders meetings
c.€1.1 Bn in annual cost savings and revenue synergies		1-3 DECEMBER	Shareholders meetings (EGMs)
	2021	1Q 2021E	Regulatory authorisations
Excess capital at closing invested in FV adjustments and	Merger closing
restructuring while maintaining a solid balance-sheet
		4Q 2021E	IT integration
Major value-creation opportunity for shareholders with
enhanced profitability and efficiency

Integration teams already working together - aiming at closing in 1Q21

11

CONTENTS

I.	3Q20 Highlights

II.

3Q20 Quarterly review

III. Final remarks

12

3Q20 QUARTERLY REVIEW

Loan-book broadly stable with consumer lending resuming growth while demand for Government guaranteed loans tapers

Loan book

Breakdown, €Bn

Record loan-book growth ytd driven by ICO-loans(4) with recovering production in credit to households

		30 Sep 20	% ytd	% qoq
I. Loans to individuals	121.8	(2.1)	(1.9)
Residential mortgages	86.3	(2.5)	(0.6)
Other loans to individuals	35.5	(1.1)	(5.0)
	(1)	14.4
	(2.2)	0.6
o/w consumer loans
o/w other	(2)	21.0	(0.4)	(8.5)
II. Loans to businesses	107.4	17.6	1.4
Corporates and SMEs	101.5
19.0	1.7
Real Estate developers	5.9	(2.7)	(3.5)
Loans to individuals & businesses	229.1	6.2	(0.4)

Performing loan book ytd, €Bn

+6.5%

+5.1

(0.2)

+11.9

Public

233

Other

sector &

other(5)

(2.2)

lending to

businesses

(0.4)

219

Mortgages Consumer ICO loans(4)

1Q (€Bn):

0.5

2Q (€Bn):

10.1

3Q (€Bn):

1.4

Dec-19

Sep-20

New production in residential mortgages and consumer lending, €M (CABK ex BPI)

Mortgages			Consumer loans
800			1,000
600			800
			600
400			400
200			200
0			0
		Jan	Mar May	Jul	Sep
Jan Mar May	Jul	Sep

2019 2020

III. Public sector	12.8	8.5	(1.3)
Total loans	241.9	6.4	(0.4)
Performing loans	233.2	6.5	(0.4)
Performing loans ex 2Q seasonal impacts	(3)		0.4%

• Business lending (+17.6% ytd; +1.4% qoq) keeps supporting loan growth with ICO-loan production tapering in 3Q
  -ICO loans outstanding at €11.9Bn with average guarantee at 77%(6)
• Consumer lending resumes growth in 3Q
• 3Q mortgage production at 2019 levels
• Performing loans +6.5% ytd; +0.4% qoq adjusting for seasonality(3) in "other credit to individuals"

1. Unsecured loans to individuals, excluding those for home purchases. Includes personal loans from CABK, BPI, MicroBank and CABK Payments & Consumer, as well as revolving credit card balances (CaixaBank Payments & Consumer) excluding float.
2. Includes credit to self-employed. Impacted by adverse seasonality in 3Q (pension advances in Jun-20 amounting to €1.8Bn).

1. Adjusted for seasonal impacts in "other loans to individuals" in Jun-20.
2. Government-guaranteedloans with guarantee from ICO.

(5)	"Other loans to individuals" other than consumer lending and ICO loans to self-employed.	13
(6)	Guarantee over total ICO loans granted as of 30 Sep. 2020 (€13.0Bn of which €11.9Bn outstanding).

3Q20 QUARTERLY REVIEW

ALCO book reduction mostly reflects maturities in the quarter

Total ALCO(1)

Group, end of period in €Bn

FV-OCI AC	(2)	Maturity profile supports yields over the medium term

				Group ALCO(1) maturity profile, 30 September 2020 in €Bn
		45.3	43.8	41.7
33.8	32.2					9.5
		25.4	24.8
		23.7	8.7
16.3	16.3
							6.8
17.5	15.8	19.9	19.0	18.0										5.6
Sep-19	Dec-19	Mar-20	Jun-20	Sep-20				3.6
Yield, %				2.1
								1.4		1.1	0.3	1.4		0.3
0.9	0.7	0.6	0.6	0.6					0.7
Average life, yrs				2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030	>2030
3.1	3.3	4.2	3.8	3.7
Duration, yrs					Avg. yield:					Avg. yield:
2.4	2.6	3.6	3.2	3.2	0.3%					1.0%

1. Banking book fixed-income securities portfolio and liquidity management portfolio, excluding trading book assets.
2. Securities at amortised cost.
3. Sovereign exposures account for 93% of total ALCO book.

Sovereign exposure

Breakdown by main exposures(3), 30 September 2020

84.9%

7.6%

6.5%

0.9%

14

3Q20 QUARTERLY REVIEW

Customer funds keep growing with support from deposits and l/t savings

Customer funds

Breakdown, €Bn

	30 Sep 20	% ytd	% qoq
I. On-balance-sheet funds	297.5	7.3	1.1
Demand deposits	213.5	12.6	2.0
Time deposits(1)	24.4	(15.8)	(4.7)
Insurance	58.0	1.0	0.5
	12.9
o/w unit linked	5.3	5.5
Other funds	1.6	22.4	(4.9)
II. Assets under management(2)	100.8	(1.5)	2.3
Mutual funds(3)	67.2	(2.1)	2.4
Pension plans	33.7	(0.2)	2.1
III. Other managed resources	6.1	30.6	(21.5)
Total	404.4	5.2	0.9

1. Includes retail debt securities amounting to €1,452M at 30 September 2020.
2. Off-balance-sheetAuM (excluding unit linked which are on-balance-sheet funds).
3. Including SICAVs and managed portfolios.

3Q growth supported by l/t saving inflows, markets and deposits

Customer funds evolution ytd, €Bn

AuM(6) avg. balances vs. eop, rebased to 100 = avg. AuM in FY19

+5.2%

+21.1

2019 Average

103.7

102.9

103.5

404.4

102.0

(4.3)

+2.0

+0.9

+0.6

AuM =100

100.4

99.6

99.0

384.3

3Q

Deposits &

97.0

1H

1H

3Q

other(5)

Market Effects(4)

L/t saving inflows

(ex market)(4)

9M20: (2.4)

9M20: +1.4

Dec-19

Sep-20

1Q19 2Q19

3Q19 4Q19 1Q20

2Q20 3Q20

3Q20

eop

• Total customer funds grow by +5.2% ytd (+0.9% qoq)
• 3Q AuM +3% over 2019 average
• Recovery in off-B/S funds continues with support from net inflows and markets

1. Market impacts on long-term savings. Long-term savings: saving insurance, pension plans and mutual funds (including SICAVS and managed portfolios).
2. Including deposits, other funds and other managed resources.

(6) Mutual funds (including managed portfolios and SICAVs), pension plans and unit linked.

15

3Q20 QUARTERLY REVIEW

Better cost and insurance performance lead to improvement in pre-provision profit

Consolidated Income Statement

€M

	3Q20	3Q19	% yoy	% qoq
Net interest income	1,222	1,242	(1.6)	(0.2)
Net fees and commissions	638	656	(2.7)	4.9
Income and expense insurance/reinsurance	150	143	4.7	6.0
Trading	40	24	61.0	(75.6)
Dividends	2	0		(98.3)
Equity accounted	122	135	(9.6)
Other operating income/expenses	(30)	(35)	(14.7)	(77.9)
Gross income	2,143	2,165	(1.0)	0.4
Recurring operating expenses	(1,140)	(1,189)	(4.1)	(1.5)
Extraordinary operating expenses
Pre-impairment income	1,004	976	2.8	2.8
LLPs	(260)	(84)		(68.2)

CORE REVENUES SUPPORTED BY A STRONG QUARTER IN INSURANCE

• Core revenues recover in 3Q with yoy evolution dragged by lower NII and e-payment fees; partly offset by higher insurance revenues

1. NII impacted by lower yields despite higher average volumes and ECB measures; flat qoq

1. Fees recover strongly in 3Q with evolution yoy mainly driven by lower e-payments

• 1. Strong quarter in other insurance revenues supported by MyBox recurrence and 3Q SCA seasonality
• Trading gains slightly higher yoy offsetting lower income from investments

CORE OPERATING INCOME GROWTH SUPPORTED BY SIGNIFICANT COST SAVINGS

• Core operating income improvement accelerates in 3Q (+2.8% yoy;+10.8% qoq) with support qoq from revenues and costs

Other provisions	(23)	(60)	(62.3)	(44.2)
Gains/losses on disposals and other	(42)	(44)	(4.8)
Pre-tax income	678	788	(13.9)
Tax, minority & other	(157)	(144)	9.2
Net income	522	644	(19.0)
Pro memoria
Core revenues	2,094	2,117	(1.1)	3.7
Core operating income(1)	954	928	2.8	10.8

• Strong decline in recurrent expenses underpinned by restructuring, lower pension liabilities and other saving initiatives

LOWER LLPs REFLECT H1 FRONT-LOADING OF COVID RESERVE AND LOW NPL FORMATION

• 3Q20 annualised CoR at 40 bps after front-loading of COVID reserve build in 1H
• Gains/losses impacted by branch network restructuring (branch closures)  in 4Q it will reflect capital gain from Comercia disposal (closed in October)

Core operating income(1)

9M20 yoy

+2.7%

1. Core revenues minus recurrent operating expenses.

16

3Q20 QUARTERLY REVIEW

BPI segment total revenues up c.10% qoq with yoy supported by resilient NII

BPI Segment P&L(1)

€M

	3Q20	3Q19 % yoy % qoq
Net interest income	109	108	1.2	0.4
Net fees and commissions	59	66	(9.1)	3.4
Other revenues	8	12	(31.8)
Gross income	177	186	(4.9)	10.1
Recurring operating expenses	(115)	(116)	(1.2)	5.1
Pre-impairment income	62	70	(10.9)	20.8
Impairment losses & other provisions	6	25	(74.8)
Gains/losses on disposals and other	2	1
Pre-tax income	71	96	(26.1)
Income tax, minority interest & others	(15)	(22)	(29.7)
Net attributable profit	55	74	(25.0)

NII growth supports core operating income while lower LLCs

reflect PPA release and front-loading of reserve build for COVID-19

Continued loan growth with widespread support…

…and lower NPLs

Performing loan-book, in €Bn and %ytd

NPLs(3), in €M and % ytd

+0.45

+3.9%

-6.1%

(0.07)

+0.48

+0.04

Public

24.5

767

sector &

Consumer Businesses

720

other(2)

23.6 Mortgages

Dec-19

Sep-20

Dec-19

Sep-20

Committed to support clients and the economic recovery in Portugal

Measures implemented at BPI

	~€6.1Bn	Loan		~€0.5Bn	COVID-19	(4)			€48M	COVID Reserve
		moratoria			Public lines					build - 9M20

1. Excludes contribution from BPI stakes, which is assigned to the "Investments" business segment. NII excludes cost from funding BFA and BCI which is included in "Investments" segment.
2. Credit to public sector and other credit to individuals excluding residential mortgages and consumer lending.

(3)	Includes non-performing contingent liabilities.	17
(4)	Total amount outstanding as of 30 September 2020.

3Q20 QUARTERLY REVIEW

NII stable in the quarter as ECB funding and higher average loan volumes offset lower yields and ALCO contribution

NII evolution

€M

CABK

BPI					-1.6%
1,237	1,241	1,242	1,231	1,200	1,225	1,222
98	100	107	107	107	108	109
1,139	1,141	1,135	1,124	1,093	1,117	1,114
1Q19	2Q19	3Q19	4Q19	1Q20	2Q20	3Q20
					-0.2%
9M20 Group, % yoy					-2.0%

NII bridge				Margins				Customer spread
qoq, €M				Customer spread, bps			Net loans
				223	221	215	198	Client funds
				192
1,225	(12)	9	1,222					FB loan yields(2)
Client NII(1)	ALCO &					221 bps
		other		3	2	2	1	2
				220	219	213		+46 bps vs. 2Q20
				197	190
	-0.2%						NIM
						108 bps
								-8bps vs. 2Q20
2Q20			3Q20	3Q19	4Q19	1Q20	2Q20	3Q20

Client NII:	ALCO and other:
•	Positive contribution from higher average loan volumes…	•	Benefit from full take-up of TLTRO III…
•	…more than offset by lower margins as loan yields are	•	…more than offsets lower contribution from ALCO bond
	impacted by day-count and change in mix (full impact on		book and higher cost of carry from growth in deposits

BB of 2Q ICO-loan production)

4Q20e NII expected to be in line with Q2-Q3 levels

(1)	Including NII from life-savings insurance.
(2)	CABK ex BPI. Front-book yields are compiled from long-term lending production data (loans and revolving credit facilities, including those that are syndicated) of CaixaBank,S.A. and MicroBank; excluding public sector. Back book	18
	includes all segments.

3Q20 QUARTERLY REVIEW

Fee recovery continues with broad-based qoq improvement

and 3Q yoy mostly reflecting e-payment impacts

Net fee evolution

€M

CABK

BPI

			694
	636	656		658
612		65
		61
60	67	66
	569	590	629	597
552

1Q19

2Q19

3Q19

4Q19

1Q20

9M20 Group, % yoy

-2.7%

638

608

59

57

551 579

2Q20 3Q20

+4.9%

0.0%

Broad-based improvement QoQ

Fee breakdown by main category, 3Q20 in €M and %			Monthly fee evolution, €M
		% yoy	% qoq			2019		2020			235
RECURRENT	317	-8.2%	+9.8%
BANKING & OTHER	222					233
						219
				214		213
ASSET							213
229	+2.0%	+6.7%											208
MANAGEMENT(1)						204
				209		213
									207
INSURANCE				202
49	-4.6%	+4.9%			202
DISTRIBUTION									198
									193
WHOLESALE	43	+23.9%	-25.8%
BANKING			Jan-Feb Mar	Apr	May	Jun	Jul	Aug	Sep

average

• Recurrent banking & other: strong recovery qoq with yoy mainly reflecting lower e-payment fees (c.-17% yoy; +c.36% qoq)
• AM: growth yoy and qoq mainly driven by higher inflows and markets
• Insurance distribution: continued recovery since lock-down
• Wholesale banking: another strong contribution yoy despite summer seasonality affecting qoq activity

(1) Including mutual funds, managed portfolios, SICAVs, pension plans and unit linked.

19

3Q20 QUARTERLY REVIEW

Other insurance revenues recover strongly to exceed pre-COVID levels

	Other insurance revenues exceed pre-COVID levels
	Other insurance revenues(1), €M
					Driving growth in total insurance revenues
		Equity accounted	Life-risk keeps supporting core revenues despite adverse seasonality
		Total insurance revenues (NII, fees and other(1)), €M
		Life-risk	(summer season affecting commercial activity)

			+6.5%				Life-risk revenues, €M					143	150
									137
															+3.9%
							+8.5%				121
						233
		219
178	180		190	187	186	83	9M20 yoy, %									1,015
76							74					978
		41	37
		44
48	46											240	263
							52
															146
								35							161
														170	165
			149	150		150	25
	134	143	141
130
															407	441
1Q19	2Q19	3Q19	4Q19	1Q20	2Q20	3Q20	3Q13	3Q14	3Q15	3Q16	3Q17	3Q18	3Q19	3Q20	9M19	9M20
					+25.5%

						Growth underpinned by "MyBox" product recurrence and strong recovery in			NII - insurance		Equity accounted - insurance
	9M20 Group, % yoy		+5.1%
			the SCA non-life JV contribution helped by seasonality and markets			Fees - insurance		Life-risk insurance revenues

1. Life-riskrevenues and equity accounted income from SCA and other bancassurance stakes from BPI.

20

3Q20 QUARTERLY REVIEW

Restructuring and additional cost-savings support better cost trajectory

Continued efforts to manage costs down

Recurrent costs, €M

CABK

BPI		-4.1%
1,204	1,204	1,189	1,174	1,188	1,157
		1,140
115	117
116	115	116	109	115
1,089	1,087	1,073	1,059	1,072	1,048	1,025
1Q19	2Q19	3Q19	4Q19	1Q20	2Q20	3Q20
					-1.5%
9M20 Group, % yoy				-3.1%

Reduced costs across all items		Improving core operating income and C/I ratio
Recurrent cost bridge, yoy in €M		Core operating income bridge, 9M20 vs. 9M19 in €M

	-4.1%				+2.7%
1,189	-33	-11				(43)	+ 112
	Personnel(1)	-5
					2,673
			1,140		Core	Recurrent
		General	Depreciation	2,604
						revenues	costs
								56.3%
								% Core C/I TTM
								(-1.6 pp yoy)
3Q19				3Q20	9M19			9M20

On track to comfortably meet upgraded FY20E guidance of "<-2% yoy"

1. Impacted by voluntary redundancy programme in 2Q19 (with departures in August 2019) and early retirement programme in 1Q20 (with departures in April 2020).

21

3Q20 QUARTERLY REVIEW

97% of moratoria in Spain resumed some payment by Q3

-with 97% fulfilling their obligations

Tapering demand for moratoria ahead of deadline

-in light of 3Q activity rebound

All moratoria in Spain will have resumed some payment obligations by year-end

Weekly moratoria production(1), in €Bn

4

3

2

1

0

<4 Apr 18-Apr09-May30-May20-Jun

CABK

30-Sep 2020

Last day to apply for loan moratoria (Spain and Portugal)(2)

11-Jul01-Aug22-Aug12-Sep

BPI

CABK ex BPI - Moratoria in loans to individuals(3) (total and facing payment obligations), outstanding balance(4) in €Bn

10

Total outstanding

8	Moratoria facing
payment obligations

6

4

2

0

Jun-20	Sep-20	Dec-20	Mar-21	Jun-21	Sep-21
Most legal moratoria		Most consumer loan moratoria	Most mortgage moratoria
expired  resume			expire  resume normal			expire  resume normal
interest payments		installments			installments

Moratoria in Spain(5): €11Bn

• 97% of loan-moratoria faced payment obligations(6) by end of 3Q with 97% honouring them
• All consumer loan-moratoria expire between October and YE2020

Moratoria in Portugal(5): €6Bn

• 38% of loan-moratoria faced payment obligations by end of 3Q, with 99.8% honouring them
• Of the remaining 62% <3% show indication of potential future payment difficulties

1. Excludes applications rejected by the Bank or declined by the client.
2. In Spain: 29 September 2020 for RDL 8/2020, RDL 11/2020 and RDL 19/2020; 30
   September 2020 for RDL 25/2020 and RDL 26/2020. In Portugal: 30 September 2020.
3. Additionally there are €0.6Bn in moratoria to businesses as of 30 September 2020.

1. Excluding those expired and resuming normal installments.
2. Outstanding balance as of 30 September 2020. Refer to the appendix for additional details.

(6) Including expired deferrals that already resumed normal installments.

22

3Q20 QUARTERLY REVIEW

Lower 3Q LLCs as bulk of COVID-19 reserve already booked in 1H

FY20E LLCs frontloaded in 1H

LLCs (€M) and annualised quarterly CoR (%)

COVID-19 LLCs	1.27%

	Other LLCs
	Annualised quarterly CoR
					819
				0.84%
				515
					755	0.40%
0.20%	0.14%	0.14%			260
	0.13%	400
						6
						254
123	81	84	88	115	64
1Q19	2Q19	3Q19	4Q19	1Q20	2Q20	3Q20

9M20 Group	84 bps
Annualised CoR

IFRS9-Model scenarios: cumulative evolution of real GDP 2020e-2022e and weight by scenario(1)

Weight by scenario  Base (60%)	Adverse (20%)	Upside (20%)
SPAIN
-1.5%	-5.0%	+1.5%
GDP 2020e-22e
				• CoR decreases in 3Q
PORTUGAL	-1.4%	-4.9%	+1.0%		as bulk of COVID-19
GDP 2020e-22e		reserve build was
						front-loaded in 1H

LLPs by stage as of 30 September 2020, €M

3Q LLCs include

•

Stage 1

Stage 2

Stage 3

generic reserves

applying a

Total €M and % ytd

1,012 +73%

962 +34%

3,909 +10%

conservative approach

o/w COVID

456

275

429

reserve, €M

3Q provisioning maintains conservative approach in face of uncertainties

(1) Refer to the appendix for additional details.

23

3Q20 QUARTERLY REVIEW

Strong liquidity metrics

while comfortably front-loading MREL to optimise capital

High liquidity metrics

Liquid assets, €Bn

Total

HQLAs			106.6	110.7
		96.2		92.4
89.4	89.4		88.7
		73.6

56.4 55.0

Sep-19Dec-19Mar-20Jun-20Sep-20

Other liquidity
280%	141%	98%	€49.7Bn
metrics
	30 Sep 2020	LCR(1)	NSFR(2)	LTD	TLTRO III(3)

Comfortably front-loading MREL needs

MREL stack, in % of RWAs

Continued and successful market access

24.41%

CABK issues(6) January 2017 - October 2020, in €Bn

22.70%

⎢

16.77%

0.03% Other

€2.75Bn

2020 issues

3.48% Eligible SP

21.0

Current MREL ⎢Sub-

3.89% SNP

1 AT1 issue

+ 2 SP issues

MREL requirements(5)

3.0

(incl. 1 COVID 19 Social bond)

2.28% T2

20.90%

3.2

2.05% AT1

Sub-MREL

PF(4)

5.6

12.68%

5.0

CET1

4.2

MREL PF(4)

CB

SP

SNP

Tier 2

AT1 Total issued

New AT1

CaixaBank ratings confirmed by all 3 major

€750 M

issue

rating agencies post announcement of

5.875% coupon

merger agreement with Bankia

1 Oct 2020

1. Group end of period. Group average last 12 months: 224%. (2) NSFR end of period. Best estimate according to the new CRR criteria (Regulation (EU) 2019/876 of 20 May 2019). (3) €40.7Bn maturing in 2023 and €9Bn maturing in 2022.

1. PF Comercia disposal and AT1 issuance, both in October. (5) CaixaBank has been required to reach, from 31 December 2020, a minimum amount of own funds and eligible liabilities at a consolidated level of 10.56% of the total liabilities and own funds (TLOF), as of 31st December 2018. Moreover, 7.80% of the TLOF must be comprised of subordinated instruments. The Total MREL at a consolidated level, expressed as a percentage of the risk-weighted assets reported as of 31 December 2018, would be 22.70%, whereas the Subordinated MREL, again as a percentage of RWA, would be 16.77%. For additional information refer to IP#270 at CNMV (5 June 2020). (6) Issues by CABK (ex BPI) in Euro equivalent figures,

including private placements.

24

3Q20 QUARTERLY REVIEW

Strong organic generation and Comercia disposal bring CET1 ratio

above 12% with MDA increasing to ~460 bps PF AT1 issuance

% CET1 bridge
% and bps							Reinforced solvency, MREL and buffers
					+51 bps	12.68%	Group(3), as of 30 September 2020 PF(4)
+45 bps	-15 bps		+32 bps	-12 bps	12.17%		CET1 PF ⎢ CET1 PF ex transit. IFRS9	12.68% ⎢ 12.17%
	-11 bps	11.97%
11.79%			Comercia	9M20
Dividend	Markets &	Comercia		Tier 1 PF	14.73%
	disposal-	Transitional
Organic	accrual(1)	other	disposal(2)	dividend	IFRS9 (o/w
capital			(ex dividend)	accrual(1)	+4 bps in 3Q)
generation							Total Capital PF	17.01%
(ex dividend)
							Subordinated MREL PF	20.90%
							MREL PF	24.41%
Jun-20			Sep-20		Sep-20 PF (2)	Sep-20 PF	(2)	5.3%
Ex transitional			Ex transitional		Ex transitional		Leverage ratio
IFRS9			IFRS9		IFRS9

€17.5

Bn

€17.8

Bn

€18.5Bn

MDA buffer PF(4)

CET1

458 bps

RWAs €148.0

Bn

€146.1

Bn

€145.6Bn

+89 bps vs. Jun-20

(1)

Dividend accrual corresponding to a payout of 43% (maximum between announced dividend policy and the latest 3-year average payout).

(2) Pro-forma Comercia stake disposal closed in October.

(3)

As of 30 September 2020, CABK CET1 ratio on a solo basis is 14.1% and BPI CET1 ratio is 13.9% (13.6% on a solo basis).

25

(4)

Pro-forma Comercia disposal (all ratios and MDA) and PF AT1 issuance (MDA and all ratios except for CET1), both transactions in October.

CONTENTS

I.

II.

3Q20 Highlights

3Q20 Quarterly review

III.

Final remarks

26

FINAL REMARKS

Successfully navigating a challenging environment…

0102

Resilient franchise value	Credit metrics broadly stable despite bulk of
	moratoria resuming payment obligations

Continued market share gains throughout the crisis with activity levels picking up in 3Q

03

Widening core operating jaws

Revenue recovery and continued efforts to manage costs down improve operating leverage and efficiency

Supported by pro-active management of NPLs, successful forbearance measures and front-loading of COVID-19 reserve build

04

Further reinforced solvency

Strong organic generation, Comercia disposal and AT1 issuance increase MDA buffer PF to c.460 bps

…and continuing to support our clients and the economic recovery

27

APPENDIX

APPENDIX

28

APPENDIX

9M20 P&L

	Consolidated Income Statement						Income statement by perimeter (CABK/BPI)
	€M						€M
		9M20	9M19	% yoy			9M20 CABK	% yoy		9M20 BPI		% yoy
	Net interest income	3,647	3,720	(2.0)			3,323	(2.7)		324		6.2
	Net fees and commissions	1,905	1,904	0.0		1,727	0.9	178		(7.7)
	Dividends	96	161	(40.7)		53	(52.7)	42		(12.5)
	Equity accounted	218	344	(36.4)		199	(36.7)	19		(33.7)
	Trading income	182	285	(36.3)		198	(28.2)	(16)
	Income and expense insurance/reinsurance	441	407	8.5		441	8.5
	Other operating income & expenses	(229)	(211)	8.3		(207)	7.1	(22)		22.2
	Gross income	6,260	6,610	(5.3)			5,735	(5.1)		526		(7.3)
	Recurring operating expenses	(3,485)	(3,597)	(3.1)		(3,145)	(3.2)	(340)		(2.3)
	Extraordinary operating expenses		(978)
	Pre-impairment income	2,776	2,035	36.4			2,590	42.6		186		(15.3)
	LLPs	(1,594)	(288)			(1,582)		(12)
	Other provisions	(207)	(151)	36.7		(206)	36.0	(1)
	Gains/losses on disposals and other	(92)	(82)	11.9		(95)	11.7	3		5.3
	Pre-tax income	883	1,514	(41.7)			708	(42.4)		175		(38.8)
	Income tax	(157)	(246)	(36.2)			(119)	(49.0)	(38)
	Profit for the period	726	1,268	(42.8)			588	(40.8)		137		(49.9)
	Minority interests & other	(1)	2				(1)
	Net income	726	1,266	(42.6)			589	(40.6)		137		(49.9)

29

APPENDIX

Segment reporting: additional information

Income statement by segment

€M

	Bancassurance		Investments			BPI
	3Q20	% qoq	% yoy	3Q20	% qoq	% yoy	3Q20	% qoq	% yoy
Net interest income	1,130	(0.7)	(2.6)	(17)	(21.2)	(32.7)	109	0.4	1.2
Net fees and commissions	579	5.1	(2.0)				59	3.4	(9.1)
Dividends and equity accounted	89		10.0	29	(66.4)	(42.1)	5	42.1	29.3
Trading income	38	(76.9)	89.9	(3)	(35.4)	(36.8)	4		(49.0)
Income and expense insurance/reinsurance	150	6.0	4.7
Other operating income & expenses	(29)	(76.8)	(19.4)				(1)	(90.4)
Gross income	1,957	2.3	(0.1)	9	(85.1)	(55.3)	177	10.1	(4.9)
Recurring operating expenses	(1,024)	(2.2)	(4.5)	(1)			(115)	5.1	(1.2)
Extraordinary operating expenses
Pre-impairment income	933	7.8	5.2	8	(86.6)	(58.2)	62	20.8	(10.9)
LLPs	(267)	(66.1)					6		(74.8)
Other provisions	(23)	(43.2)	(62.3)				0
Gains/losses on disposals & other	(44)		(0.0)				2
Pre-tax income	599		(10.9)	8	(86.6)	(58.2)	71		(26.1)
Income tax	(146)		(18.6)	5	4.6	(91.5)	(15)		(29.7)
Minority interest & others	1		(67.1)
Net income	453		(7.9)	13	(79.7)	(83.4)	55		(25.0)

30

APPENDIX

Bancassurance P&L: contribution from insurance

Bancassurance P&L 3Q20: contribution from insurance

€M

	Bancassurance		o/w Insurance(1)	Insurance
		% qoq
Net interest income	1,130	87	0.2
Net fees and commissions	579	(24)	15.0
Income and expense insurance/reinsurance	150	150	6.0
Dividends and equity accounted	89	78	88.8
Other revenues	9	1
Gross income	1,957	292	16.2
Recurring operating expenses	(1,024)	(32)	(0.0)
Extraordinary operating expenses
Pre-impairment income	933	260	18.5
LLPs & other provisions	(290)
Gains/losses on disposals & other	(44)
Pre-tax income	599	260	18.5
Income tax & minority interest	(145)	(54)	0.1
Net income	453	206	24.5

(1) VidaCaixa P&L prior to consolidation. Does not include the fees paid by SegurCaixa Adeslas to the bancassurance business for non-life insurance distribution.

31

APPENDIX

CaixaBank standalone: additional information (I/II)

Income Statement: 3Q20

€M

	3Q20	% yoy	% qoq
Net interest income	1,114	(1.9)	(0.3)
Net fees and commissions	579	(2.0)	5.1
Income and expense insurance/reinsurance	150	4.7	6.0
Trading	38	77.7	(76.5)
Dividends	2		(96.9)
Equity accounted	112	(9.6)
Other operating income/expenses	(29)	(19.4)	(76.8)
Gross income	1,965	(0.7)	1.5
Recurring operating expenses	(1,025)	(4.5)	(2.2)
Extraordinary operating expenses
Pre-impairment income	940	3.8	6.0
LLPs	(267)		(66.1)
Other provisions	(23)	(62.3)	(43.2)
Gains/losses on disposals and other	(44)	(0.0)
Pre-tax income	606	(12.3)
Tax, minority & other	(142)	(18.5)
Net income	464	(10.2)

Fee breakdown by main category: 3Q20

In €M

% yoy % qoq

Recurrent	282	-8.1%	+10.3%
Banking & other

AM	218	+2.5%	+7.4%

Insurance		36	-2.4%	+4.1%
distribution

Wholesale		43	+24.9%	-25.7%
banking

32

APPENDIX

CaixaBank standalone: additional information (II/II)

Customer funds

Breakdown, €Bn

	30 Sep 20	% ytd	% qoq
I. On-balance-sheet funds	268.0	7.2	1.1
Demand deposits	196.7	12.4	2.0
Time deposits	16.0	(22.4)	(7.3)
Insurance	53.7	1.5	0.8
o/w: unit linked	10.2	5.8	6.1
Other funds	1.6	22.8	(4.8)
II. Assets under management	95.8	(1.2)	2.3
Mutual funds	62.1	(1.7)	2.4
Pension plans	33.7	(0.2)	2.1
III. Other managed resources	4.7	51.2	(25.8)
Total customer funds	368.5	5.3	0.9

Loan book

Breakdown, €Bn

	30 Sep 20	% ytd	% qoq
I. Loans to individuals	108.3	(2.7)	(2.3)
Residential mortgages	74.5	(3.4)	(0.9)
Other loans to individuals	33.8	(1.3)	(5.3)
o/w: consumer loans (1)	13.0	(2.8)	0.5
II. Loans to businesses	97.4	19.0	1.4
Corporates and SMEs	91.7	20.7	1.7
Real Estate developers	5.7	(2.7)	(3.5)
Loans to individuals & businesses	205.7	6.5	(0.6)
III. Public sector	11.0	10.5	(0.5)
Total loans	216.7	6.7	(0.6)
Performing loans	208.6	6.8	(0.6)

1. Unsecured loans to individuals, excluding those for home purchases. Includes personal loans from CaixaBank, MicroBank and CaixaBank Payments & Consumer, as well as revolving credit card balances (CaixaBank Payments & Consumer) excluding float.

33

APPENDIX

Loan yields and wholesale funding (cost and maturities)

Loan yields			Wholesale funding cost		Wholesale funding maturities
Front-bookCABK ex BPI and Group back-book yields(1) (bps)			CABK ex BPI	wholesale funding back-book(2) volumes in €Bn and			CABK ex BPI maturities(3), €Bn, as of 30 September 2020
							spread over 6M Euribor in bps, as of 30 September 2020

FB							Spread
BB							Volume
287	280	257	252	240
			221		123	124	123
					175	116	119	119	120
															2.8
229	225	223	221
	215
					198	192
																1.6
							30.6	29.9	30.9	30.8	31.5	31.3	32.2	1.0
Mar-19	Jun-19	Sep-19	Dec-19	Mar-20	Jun-20	Sep-20	Mar-19	Jun-19	Sep-19	Dec-19	Mar-20	Jun-20	Sep-20	2020	2021	2022

1. Front-bookyields are compiled from long-term lending production data (loans and revolving credit facilities, including those that are syndicated) of CaixaBank,S.A. and MicroBank; excluding public sector. Back book includes all segments.
2. Includes securitisations placed with investors and self-retainedmulti-issuer covered bonds. It does not include the AT1 issued in June 2017 and in March 2018. Wholesale funding figures in the Quarterly Financial Report reflect the Group's funding needs and as such do not include ABS securities and self-retained multi-issuercovered bonds, and include AT1 issuances.
3. Legal maturities. This figure depicts the impact of wholesale issuances in funding costs of the CaixaBank Banking Book. As of 30 September 2020, the spread over 6M Euribor in bps for 2020-21-22 maturities stands at 114, 150 and 97 bps respectively.

34

APPENDIX

Low risk, diversified and highly collateralised loan portfolio

Low-risk, diversified and highly collateralised loan portfolio

Customer loans (gross), in €Bn and breakdown in % of total as of 30 Sep. 2020

Limited exposure to sectors highly affected by COVID-19

CABK ex BPI: Loan-book by COVID-19 sensitivity(2), €Bn

	30 Sep 20			o/w GGLs(1), %
I. Loans to individuals	121.8			0.9%
Residential mortgages	86.3			0.0%
Other loans to individuals	35.5			3.2%
o/w consumer loans	14.4			0.0%
o/w other	21.0			5.4%
II. Loans to businesses	107.4			10.5%
Individuals & businesses	229.1			5.4%
III. Public sector	12.8			0.0%
Total loans	241.9			5.1%
Performing loans	233.2			5.3%

€217 Bn

210

140

70

0

3Q20 eop

High impact (~11%)

• Tourism and leisure
• Transport
• Automobile
• Oil & gas
• Textile
• Electronics and house appliances

Moderate impact (~29%)

• Construction and RE
• Professional services
• Consumer lending
• Other moderate-impact(3)

Low impact (~60%)

• Energy and residual treatment
• Food industry and distribution
• Merchandise transport
• Online distribution
• Pharmacy and health
• Technology and telecoms
• Mortgages & other loans to indiv.(4)
• Public sector lending

High impact sectors		o/w with guarantee
	Exposure(3), €Bn		ICO, %	other(5), %
TOURISM &	9.2	22%	35%
LEISURE
TRANSPORT	5.1	10%	12%
AUTOMOBILE	4.3	12%	5%
OIL & GAS	2.4	4%	20%
TEXTILE	1.7	35%	14%
ELECTRONICS &	0.7	21%	6%
APPLIANCES
TOTAL HIGH-	23.5	17%	20%
IMPACT

Pro-memoria
Total loans with mortgage guarantee	50.0%	58%
Total loans with GGLs(1)	5.1%
Total loans with other guarantees	2.9%	Collateralised
Residential mortgages - average LTV	52.9%

• Limited exposure to sectors highly affected by COVID-19:~11% of the loan book(2)
• c.80% of ICO-loans granted(6) to high and moderate impact sectors (47% to moderate-impact)
• >40% of total exposure in credit to businesses(3) in high and moderate sectors(2) is collateralised
• Lending to large corporates centered on sector champions: c.50% of high-impact(2) are corporate
• Low risk appetite: LBO or specialised asset lending not material

~80%

of ICO-loans to high and moderate impact sectors(6) (€9.5Bn)

(1)	Including Loans with public guarantee from ICO in Spain and COVID-19 public support lines in Portugal.	(3)	Including lending to businesses and credit to self-employed.
(2)	CABK ex BPI based on internal criteria. Business lending breakdown differs from Pillar 3 report in that the	(4)	Ex consumer lending and credit for self-employed classified as high, moderate risk or other low impact sectors.
	latter follows CNAE (standard industry code) segmentation.	(5)	Including mortgages, ECAs and other guarantees (ex ICO).	35
		(6)	In % of ICO loans to businesses and self-employed outstanding as of 30 September 2020.

APPENDIX

Moratoria alleviate temporary customer liquidity problems

Customer loans with moratoria
Customer loans (gross), in €Bn and breakdown in % of total as of 30 September 2020
						Loan-payment moratoria(1)
	Total loans	Loans with moratoria(1)	Moratoria	(1)	Breakdown by stages, as of 30 September 2020 in % over total
				/Total
	€Bn	CABK - €Bn	BPI-€Bn	%			Stage 1	Stage 2	Stage 3	TOTAL €Bn
						CREDIT TO INDIVIDUALS	76.3%	18.0%	5.7%	13.6
I. Loans to individuals	121.8	10.4	3.2	11.2%
						CREDIT TO BUSINESSES	84.8%	13.2%	2.0%	3.5
Residential mortgages	86.3	7.2	2.7	11.5%		TOTAL(2)	78.1%	17.0%	5.0%	17.1
Other loans to individuals	35.5	3.2	0.5	10.4%				95%
							Performing
o/w consumer loans	14.4	1.2	0.4	10.8%		Residential mortgages under moratoria, breakdown by LTV as of 30 September 2020
o/w other	21.0	2.0	0.1	10.1%		19%				39%
II. Loans to businesses	107.4	0.6	2.9	3.2%		LTV ≤ 40%			60% ≥ LTV>40%
								€9.9Bn
III. Public sector	12.8	0.0	0.0	0.3%
						11%				31%
Total loans	241.9	11.0	6.1	7.1%		LTV > 80%			80% ≥ LTV>60%

1. Loan moratoria already granted. As of 30 September 2020, there are additionally c.3K applications for moratoria under analysis, for a corresponding outstanding balance of €0.1Bn.
2. Including €32M in loans to public sector under moratoria, beside moratoria for credit to individuals and households.
3. As of 30 September 2020. % based on outstanding balance.

• 95% of moratoria are performing (Stage 1 or Stage 2)

CABK ex BPI:

• 86% of moratoria in loans to individuals with mortgage guarantee(3) - with low average LTV of 55%

36

APPENDIX

Refinanced loans and classification by stages of gross lending and provisions

Refinanced loans

As of 30 September 2020, €Bn

Individuals	(1)
Businesses (ex-RE)
RE developers
Public Sector
Total
Provisions

Group
Total	O/W NPLs
4.2	3.3
2.4	1.4
0.6	0.3
0.2	0.0
7.3	5.0
1.8	1.7

Classification by stages of gross lending and provisions

As of 30 September 2020, €M

		Loan book exposure
	Stage 1	Stage 2	Stage 3	TOTAL
Loans and advances	219,686	13,464	8,727	241,877
Contingent Liabilities	16,173	632	352	17,157
Total loans and advances and	235,859	14,097	9,078	259,034
contingent liabilities

		Provision
	Stage 1	Stage 2	Stage 3	TOTAL
Loans and advances	996	948	3,812	5,756
Contingent Liabilities	16	14	97	127
Total loans and advances	1,012	962	3,909	5,883
and contingent liabilities

1. Including self-employed.

37

APPENDIX

IFRS9 scenarios - Spain & Portugal

				SPAIN									PORTUGAL
		2019	2020E	2021E	2022E		Cum.			2019	2020E		2021E	2022E			Cum.
			2020E-22E					2020E-22E
Base case																				• Slowdown in Q4 and gradual pick-up in 2021
(weight: 60%)
																						(helped by medical advances and fiscal stimulus)
Real GDP (% yoy)	2.0	-12.5	8.6		3.7			-1.5	2.2	-10.0	5.9	3.4			-1.4
					•	Assumes that targeted, temporary measures by
Unemployment rate (%, annual average)	14.1	17.5	18.9		16.3			2.2			6.5	8.3	10.4	9.0			2.5			sector and region can contain outbreaks
						• Lasting impact on international tourism (still 30%
House prices (% yoy)	3.2	-3.6	-1.9		0.6			-4.9		9.6	2.7	-6.7	2.4		-1.8			below normal in 3Q21e)
Downside
(weight: 20%)
																					• Zero growth in 1H21e and modest growth in 2H21e,
Real GDP (% yoy)	2.0	-12.5	3.0		5.5			-5.0	2.2	-10.0	1.6	3.9			-4.9
						as medical advances fall short of expectations
Unemployment rate (%, annual average)	14.1	17.5	21.7		18.1			4.0			6.5	8.3	11.4	10.0			3.5		•	Assumes that restrictions need to be tightened
																						significantly to fight outbreaks
House prices (% yoy)	3.2	-3.6	-5.1		-1.5			-9.9			9.6	2.7	-10.1	1.1			-6.7
Upside
(weight: 20%)
Real GDP (% yoy)	2.0	-12.5	9.8		5.7			1.5	2.2	-10.0		8.0	3.9			1.0		•	Positive surprises on the medical front materialize
Unemployment rate (%, annual average)	14.1	17.5	17.8		14.4			0.3		6.5	8.3		9.5	7.9			1.4		•	Full execution of NGEU projects (larger than
																						expected fiscal stimulus)
House prices (% yoy)	3.2	-3.6	0.1		3.0			-0.6		9.6	2.7		-2.7	3.2			3.2

Source: CaixaBank Research.	38

APPENDIX

Credit ratings

22 September 2020

23 September 2020

29 September 2020

30 March 2020

1. As of 17 April 2018.
2. As of 19 March 2019.
3. As of 15 January 2020.

	Long term			Short term	Outlook	SP debt
	Baa1				P-2	stable	Baa1

	BBB+				A-2	stable	BBB+

	BBB+				F2	negative	A-

	A				R-1 (low)	stable	A

Rating of covered

bond program

(1)

Aa1

(2)

AA

stable

(3)

AAA

39

APPENDIX

Glossary (I/V)

In addition to the financial information prepared in accordance with International Financial Reporting Standards (IFRS), this document includes certain Alternative Performance Measures (APMs) as defined in the guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 30 June 2015 (ESMA/2015/1057) (the "ESMA Guidelines"). CaixaBank uses certain APMs, which have not been audited, for a better understanding of the company's financial performance. These measures are considered additional disclosures and in no case replace the financial information prepared under IFRS. Moreover, the way the Group defines and calculates these measures may differ to the way similar measures are calculated by other companies. Accordingly, they may not be comparable. ESMA guidelines define an APM as a financial measure of historical or future performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. In accordance with these guidelines, following is a list of the APMs used, along with a reconciliation between certain management indicators and the indicators presented in the consolidated financial statements prepared under IFRS.

Term	Definition
AC	Amortised cost.
ALCO	Asset - Liability Committee.
AT1	Additional Tier 1: capital instruments that are continuous (no fixed maturity), including preferred shares and high contingent convertible securities.
AuM / AM	Assets under Management, include mutual funds, pension plans and unit linked.
BoS	Bank of Spain
B/S	Balance sheet.
CB	Covered Bonds
CET1	Common Equity Tier 1.
Consumer loans (Group)	Unsecured loans to individuals, excluding those for home purchases. Includes personal loans from CaixaBank, BPI, MicroBank and CaixaBank Payments & Consumer, as well as revolving credit card
	balances (CaixaBank Payments & Consumer) excluding float.
CoR	Cost of risk: total allowances for insolvency risk divided by average lending, gross, plus contingent liabilities, using management criteria.
Core C/I ratio	Core cost-to-income ratio: operating expenses (administrative expenses, depreciation and amortisation) stripping out extraordinary expenses divided by core revenues for the last 12 months.
Core operating income	Core revenues minus recurrent operating expenses.
Core revenues	Group: Sum of NII, Fees and other revenues from insurance (life-risk premia, equity accounted income from SegurCaixa Adeslas and other bancassurance stakes of BPI). CABK ex BPI: Sum of NII, Fees and
	other revenues from insurance (life-risk premia and equity accounted income from SegurCaixa Adeslas).
CRD-V	Capital Requirements Directive - V.
CRR	Capital requirements regulation.
	40

APPENDIX

Glossary (II/V)

Term	Definition
Customer spread	Difference between:
	•	Average rate of return on loans (annualised income for the quarter from loans and advances divided by the net average balance of loans and advances for the quarter); and
	•	Average rate for retail deposits (annualised quarterly cost of retail deposits divided by the average balance of those same retail deposits for the quarter, excluding subordinated liabilities).
ECA	Export Credit Agency.
EGM	Extraordinary General Shareholders Meeting.
eop	End of period.
FB / BB	Front book / back book.
FV-OCI	Fair Value in Other Comprehensive Income.
Gains/losses on	Gains/losses on de-recognition of assets and others. Includes the following line items:
disposals & others	•	Impairment/(reversal) of impairment on investments in joint ventures or associates;
	• Impairment/(reversal) of impairment on non-financial assets;
	• Gains/(losses) on derecognition of non-financial assets and investments, net;
	• Negative goodwill recognised in profit or loss;
	•	Profit/(loss) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations, net.
GGLs	Government guaranteed loans.
HQLA	High quality liquid assets.
ICO	Instituto de Crédito Oficial.
Income and expenses	Margin obtained from the difference between premia and claims on life-risk products.
from insurance
JV	Joint Venture
LBO	Leverage Buy Out.
LCR	Liquidity coverage ratio: High quality liquid asset amount (HQLA) / Total net cash outflow amount.
LLCs/LLPs	Loan-losscharges/Loan-loss provisions.

41

APPENDIX

Glossary (III/V)

Term	Definition
(Loan) Impairment losses	Allowances for insolvency risk and charges to provisions.
and other provisions
LTD	Loan to deposits: quotient between:
	• Net loans and advances to customers using management criteria excluding brokered loans (funded by public institutions);
	• Customer deposits on the balance sheet.
L/t savings	Long-term savings: also referred to as AuM and insurance funds, include mutual funds (with SICAVs and managed portfolios), pension plans, unit linked and saving insurance.
Liquid assets	Sum of HQLAs (High Quality Liquid Assets within the meaning of Commission Delegated Regulation of 10 October 2014) and the available balance under the facility with the European Central Bank (non-
	HQLA).
LTV	Loan To Value.
MDA	Maximum Distributable Amount.
Minority interests & other	Profit/(loss) attributable to minority interests and others. Includes the following line items:
	• Profit/(loss) for the period attributable to minority interests (non-controlling interests);
	• Profit/(loss) after tax from discontinued operations.
MREL	Minimum Requirement for own funds and Eligible Liabilities to absorb losses, includes instruments eligible for total capital, senior debt non-preferred, senior debt preferred and other instruments ranking
	pari-passu with the latter, at Single Resolution Board's criteria.
Net fees and	Net fee and commission income. Includes the following line items: Fee and commission income; Fee and commission expenses.
commissions
NGEU	New Generation EU plan.
NII	Net interest income.
NIM	Net interest margin, also Balance sheet spread, difference between:
	• Average rate of return on assets (annualised interest income for the quarter divided by total average assets for the quarter); and
	• Average cost of funds (annualised interest expenses for the quarter divided by total average funds for the quarter).
NPL coverage ratio	Quotient between:
	• Total credit loss provisions for loans to customers and contingent liabilities, using management criteria;
	• Non-performing loans and advances to customers and contingent liabilities, using management criteria.
NPL ratio	Non-performing loan ratio. Quotient between:
	• Non-performing loans and advances to customers and contingent liabilities, using management criteria;
	• Total gross loans to customers and contingent liabilities, using management criteria.
	42

APPENDIX

Glossary (IV/V)

Term	Definition
NPL stock / NPLs	Non-performing loans including non-performing contingent liabilities.
NSFR	Net stable funding ratio.
OCI	Other comprehensive income.
Operating expenses	Include the following line items:
	• Administrative expenses;
	• Depreciation and amortization.
P&L	Profit and Loss Account.
PoS	Point of Sale.
P2R	Pillar 2 Requirement.
PF	Pro Forma.
Pre-impairment income	(+) Gross income;
	(-) Operating expenses
ROTE	Return On Tangible Equity. Quotient between: profit attributable to the Group (adjusted by the amount of the Additional Tier 1 coupon, registered in shareholder equity) over 12-month average
	shareholder equity plus valuation adjustments deducting intangible assets using management criteria (calculated as the value of intangible assets in the public balance sheet, plus the intangible assets and
	goodwill associated with investees, net of provisions, recognised in Investments in joint ventures and associates in the public balance sheet).
RWAs	Risk Weighted Assets.
SCA	SegurCaixa Adeslas.
SMEs	Small and medium enterprises.
SP	Senior preferred debt.
SNP	Senior non preferred debt.
SREP	Supervisory Review and Evaluation Process.
Subordinated MREL	Minimum Requirement for own funds and Eligible Liabilities to absorb losses, includes instruments eligible for total capital and senior debt non-preferred.
Tier 1	Tier 1 capital is the primary funding source of the bank. This bank's core capital includes disclosed reserves -that appears on the bank's financial statements- and equity capital.
	43

APPENDIX

Glossary (V/V)

Term	Definition
Tier 2	Tier 2 capital refers to one of the components of a bank's required reserves. It is designated as the second or supplementary layer of a bank's capital and is composed of items such as revaluation
	reserves, hybrid instruments, and subordinated term debt.
TLTRO	Targeted long-term refinancing operation conducted by the European Central Bank.
Trading income	Gains/(losses) on financial assets and liabilities. Includes the following line items:
	•	Gains/(losses) on de-recognition of financial assets and liabilities not measured at fair value through profit or loss, net;
	•	Gains/(losses) on financial assets not designated for trading that must be designated at fair value through profit or loss, net;
	•	Gains/(losses) on financial assets and liabilities held for trading, net;
	• Gains/(losses) from hedge accounting, net;
	•	Exchange differences, net.
Transitional IFRS9	Transitional IFRS9 permits partially mitigating in CABK capital adequacy calculations the pro-cyclicality associated with the provisions model under IFRS9 throughout the established transitional period.
TTM	Trailing 12 months.

44

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[phone]

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