Bankia 28 October 2011 Disclaimer Disclaimer This document has - - PDF document

Bankia

2011 Third Quarter Results

28 October 2011

Disclaimer Disclaimer

This document has been prepared by Bankia, S.A. (“Bankia”) for information purposes only. It is not a prospectus and does not constitute an offer or recommendation to invest. This document does not constitute a commitment to subscribe for, or an offer to finance the purchase of, or an offer to sell, or a solicitation of offers to buy, securities of Bankia, all of which are subject to internal approval by Bankia. Bankia does not guarantee the accuracy or completeness of the information contained in this document. The information contained herein has been obtained from sources that Bankia considers reliable, but Bankia does not represent or warrant that the information is complete or accurate, in particular with respect to data provided by third parties. This document may contain abridged or unaudited information and recipients are invited to consult the public documents and information submitted by Bankia to the financial market supervisory authorities. All opinions and estimates are given as of the date stated in the document and so may be subject to change. The value of any investment may fluctuate as a result of changes in the market. The information in this document is not intended to predict actual results and no guarantee is given in that respect. Distribution of this document in other jurisdictions may be prohibited, so recipients of this document or any persons who may eventually obtain a copy of it are responsible for being aware of and complying with said restrictions. By accepting this document you accept the foregoing restrictions and warnings. This document does not reveal all the risks or other material factors relating to investments in the securities/transactions of

• Bankia. Before entering into any transaction, potential investors must ensure that they fully understand the terms of the

securities/transactions and the risks inherent in them. This document is not a prospectus for the securities described in it. Potential investors should only subscribe for securities of Bankia on the basis of the information published in the appropriate Bankia prospectus not on the basis of the information contained in this document Bankia prospectus, not on the basis of the information contained in this document.

2 of 39 / September 2011

Contents Contents

1. Q3 2011 highlights and Strategic Plan 2. Key financial data 3. Income statement 4 Balance sheet and liq idit 4. Balance sheet and liquidity 5. Risk management and capital strength 6. Group objectives

3 of 39 / September 2011

Third quarter 2011 highlights Third quarter 2011 highlights

I i t i t t i I d ffi i d t t i t t l f ti t Increase in net interest income Improved efficiency due to strict control of operating costs Integration Plan, linked to resizing of installed capacity, running well ahead of Integration Plan, linked to resizing of installed capacity, running well ahead of initial schedule Increased loan loss provisioning Strong capital position

4 of 39 / September 2011

Capital Requirements estimated by EBA for the BFA Group Capital Requirements estimated by EBA for the BFA Group

The exercise is applicable to the BFA Group; However Bankia’s core capital under EBA methods, including sovereign risk, currently exceeds the new required minimum ratio of 9%. With this strong capital position, Bankia will easily meet the EBA’s minimum requirements The BFA Group will reach the required 9% capital ratio by 30 June 2012 The BFA Group will reach the required 9% capital ratio by 30 June 2012 g p p , y q by 30 June 2012

BFA Group EBA results

9% capital ratio by 30 June 2012 without the use of public funds, through the following, amongst other, measures: 9% capital ratio by 30 June 2012 without the use of public funds, through the following, amongst other, measures:

9.1%

• 0.1%
• 0.3%
• 0.3 %
• Organic growth
• Adequate balance sheet management
• Portfolio or non-strategic asset sales
• Organic growth
• Adequate balance sheet management
• Portfolio or non-strategic asset sales

8.4% 8.7%

Portfolio or non strategic asset sales

• Other capital management measures

Portfolio or non strategic asset sales

• Other capital management measures

Core June 2011 Tier I deductions Impact Basel 2.5 EBA core Sovereign risk EBA core + sovereign

Provisional calculations indicated by EBA lead to €1,140m of capital requirements, of which €650m are for sovereign risk. It is worth noting that this calculation does not take into consideration generic provisions, which reach €1,075m (Sep 2011)

5 of 39 / September 2011

Additional efficiency improvements Additional efficiency improvements

• In addition to the improvements in planned costs under the Integration Plan, new efficiency-

related initiatives are to be started

• Involvement in the achievement of results by all employees

Initiatives already under way or planned Optimisation of operational management headquarters buildings Rationalisation of technological support y p for the short term g pp Improvements in the management of equity investments Optimisation of purchases by category Longer-term initiatives Redesign of commercial and customer processes

6 of 39 / September 2011

Tighter asset quality management Tighter asset quality management

• Adoption of best practices throughout the organisation
• Proactive management of arrears, with a conservative approach to new cases entering arrears

g , pp g

• Results linked to objectives and incentives

MAIN OBJECTIVES NPL Management Forward-looking Management alert system

EXPEDITE OUTFLOWS PREVENT INFLOWS AND REDUCE STOCKS OF NPLS

Unmatured NPL Management (+90 days)

• a d oo

g a age e t a e t syste Unmatured 0-35 days Early Management 36-90 days Preventive Management Additional actions during the quarter to support the Asset Quality Management Plan: 36 90 days Preventive Management

• Targeted management of branches with highest NPL levels
• Adaptation of manager profile to recovery and monitoring function

7 of 39 / September 2011

Remuneration policy for Bankia executives Remuneration policy for Bankia executives

Establishment of a single remuneration system for executives at Bankia B l b t fi d d i bl t f

IONS

Balance between fixed and variable components of pay Variable pay linked to the institution’s performance, with particular attention to risk management

NSIDERAT

g For executives whose work has a significant impact on the risk profile, 40% of variable pay will be deferred over a period of 3 years; and 50% of variable pay deferred or otherwise will be in shares of Bankia

KEY CON

pay, deferred or otherwise, will be in shares of Bankia

8 of 39 / September 2011

Integration Plan virtually complete Integration Plan virtually complete

Branch closures Workforce optimisation

Target of 657 branch closures exceeded by more than 100% Target of 657 branch closures exceeded by more than 100%

>100% of target

Headcount reduced by 3,497 by October, equivalent to 93% of planned reductions

3.756

>100% of target

701 85% 2,879 3.210

Completed in Q3 2011 Completed in H1 2011 657

1,766

275 476

Q1 2011 H1 2011 Q3 2011 Projected reductions

Q1 2011 H1 2011 Q3 2011 Projected closures

Additional branch closures: 225 branches in Q3 2011, 44 more than the target for all of 2011. W kf d d b 331 l i Q3 2011

Cuts implemented as % of target reductions

9 of 39 / September 2011

Workforce reduced by 331 people in Q3 2011

Technological integration on schedule Technological integration on schedule

• In October, as planned, Caja Ávila was integrated in the Bankia IT platform.
• Bankia’s systems already cover more than 60% of the Group’s customers. Once Bancaja customers are

i l d d th fi ill i t 90% Timeline for the technological integration of the Cajas in Bankia included, the figure will rise to 90%.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 Q1 Q2 2013 2013 2012 2012 2011 2011 Caja Madrid Caixa Laietana Madrid Caja de Ávila Bancaja Caja Laietana La Caja de Canarias Caja

% of customers integrated

90% 100% 60%

Caja Segovia j Rioja

% of customers integrated in the Bankia platform:

> 90% 100% > 60%

COMPLETED WITHOUT INCIDENT COMPLETED WITHOUT INCIDENT

10 of 39 / September 2011

Contents Contents

1. Q3 2011 highlights and Strategic Plan 2. Key financial data 3. Income statement 4 Balance sheet and liq idit 4. Balance sheet and liquidity 5. Risk management and capital strength 6. Group objectives

11 of 39 / September 2011

Guidelines for presentation of the financial results Guidelines for presentation of the financial results

Bankia was created following the spin off of assets and liabilities of Banco Financiero y Bankia was created following the spin-off of assets and liabilities of Banco Financiero y de Ahorros on 6 April 2011 For this reason, the financial information for financial year 2010 and Q1 2011 is presented on a pro forma basis p p For comparability, the financial information of Bankia at September 2011 (year-to-date) is presented on a pro forma basis for the income statement and on an actual basis for the balance sheet. In any case, the differences between the pro forma and actual i t t t t i ifi t ith f t i t t i t €1 981 income statement are not significant, with pro forma net interest income at €1,981m compared to €1,876m, pro forma gross margin at €3,122m compared to €3,100m, and pro forma profit attributable to the Group at €295m compared to €291m All the information in this document is presented in accordance with these All the information in this document is presented in accordance with these guidelines All the financial information has been prepared in accordance with EU-IFRS as required by Bank of Spain Circular 4/2004

12 of 39 / September 2011

Key financial data Key financial data

million euros

9M 2011 Proforma Q3 2011 Q2 2011 Proforma Q1 2011 Proforma Net interest income

1,981 712 634 635

Net fee and commission income

807 235 283 289 334 90 120 124

Net trading income and other gains/(losses) on financial assets and liabilities

334 90 120 124

Gross margin

3,122 1,037 1,037 1,048

Operating expenses

(1,783) (574) (697) (512)

Operating profit before provisions

1,338 463 340 536

Impairment losses on financial assets

(837) (213) (100) (524)

Other provisions and other gains/(losses)

(104) (133) (85) 113

Income statement

p g /( ) Profit before tax

397 117 155 125

Profit attributable to equity holders of the parent

295 90 114 91

September 2011 June 2011 March 2011 Proforma December 2010 Proforma

I eet

Average total assets1

264,737 262,606 262,694 275,298

Loans and advances to customers2

187,799 189,893 190,997 195,051

Customer deposits

156,920 159,349 153,479 144,715

Shareholders’ equity

16,374 13,297 13,276 13,260

9M 2011 P f Q3 2011 Q2 2011 P f Q1 2011 P f

Balance sh

9M 2011 Proforma Q3 2011 Q2 2011 Proforma Q1 2011 Proforma Net interest income/ Average total assets 1 3 1.00% 1.05% 0.97% 0.98% Recurring Cost:income ratio 60.7% 55.9% 62.7% 63.5% ROE 3 6 2.4% 2.2% 3.4% 2.7% ROA 1 3 0.1% 0.1% 0.2% 0.1%

Main ratios

NPA ratio 4 7.1% 7.1% 6.4% 5.7% NPA coverage ratio 4 48.3% 48.3% 54.2% 62.9% Core Tier 1 ratio 9.8% 9.8% 9.7% 5 7.8%

(1) Excludes trading derivatives and intragroup repo transactions; (2) Includes customer loans from the trading book, excludes repo transactions; (3) Annualised; (4) Includes contingent loans and liabilities; (5) After the IPO; (6) Annualised based on ending balances

M 13 of 39 / September 2011

based on ending balances

Contents Contents

1. Q3 2011 highlights and Strategic Plan 2. Key financial data 3. Income statement 4 Balance sheet and liq idit 4. Balance sheet and liquidity 5. Risk management and capital strength 6. Group objectives

14 of 39 / September 2011

The Group’s gross margin remains stable at €1 037m The Group s gross margin remains stable at €1,037m

1,048 1,037 1,037 Gross margin (€m)

Capacity to generate recurring profit in a complex environment environment Gross margin held steady in Q3 2011 despite stagnation of i ti it economic activity

Q1 2011 Q2 2011 Q3 2011

15 of 39 / September 2011

Gross margin breakdown Gross margin breakdown

Increase in net interest i

2 1

Moderate fee and

2 2

Trading income

2 3

income commission income Trading income

283

Fees and commissions (€m) 712 Net interest income (€m) Trading income (€m)

283 235

46 41 39 38 30 15 86 68 635 634 103 75 122 113

• 41
• 40

Q2 2011 Q3 2011 P t t M k ti f d t Q1 2011 Q2 2011 Q3 2011 75 Q2 2011 Q3 2011 Payments management Marketing of products Contingent risks Securities brokerage service Other Fee and commission expense

Group gross margin held steady in Q3 2011

16 of 39 / September 2011

Increase in net interest income Increase in net interest income…

Net interest income (€m) N i i 635 634 712 Net interest income (€m)

Average loan yield

3.10% 3.3% Net interest margin

loan yield Average deposit cost

2.99% 3.02% 1.86% 1.89% 1 8% 2.3% 2.8%

Gross interest margin Net interest margin(1)

1.70% 1.29% 1.16% 1.21% 0.98% 0.97% 0.8% 1.3% 1.8% 1.00%

Net interest income improves despite adverse operating conditions, reflecting positive

Q1 2011 Q2 2011 Q3 2011

margin

0.3% Q1 2011 H1 2011 9M 2011

impact of loan portfolio repricing The increase in finance income absorbed the rise in finance costs partly driven by higher interest rates during the quarter

17 of 39 / September 2011

(1) Excludes trading derivatives and intragroup repo transactions

supported by active spread management in new business …supported by active spread management in new business

Loan spreads (new business) (1) Deposit spreads (new business) (1)

3-year deposits SMEs Large corporates

3.38% 3.71% 3.45% 3.37% 3.30% 3.42% 2.8% 3.3% 3.8% 4.3%

2.44% 1.87% 1.71% 2.07% 1.88% 1 57% 1.6% 2.1% 2.6%

1-year deposits <1-year deposits Retail mortgages

2.07% 2.22% 1.00% 1.31% 1.24% 1.46% 0 3% 0.8% 1.3% 1.8% 2.3%

1.57% 1.00% 0.81% 0.77% 0.46% 0.37% 0.43% 0.1% 0.6% 1.1%

0.3% Q4 2010 Q1 2011 Q2 2011 Q3 2011

Q4 2010 Q1 2011 Q2 2011 Q3 2011

Following the significant review in Q1 2011, spreads on new loan business and customer deposits remain stable

18 of 39 / September 2011

(1) Annualized information for Bancaja and Caja Madrid only. Spread over Euribor according to transaction term

Significant cost control efforts Significant cost control efforts

Operating costs

Impact of Integration Plan apparent in Q3 2011

p g (€m)

in Q3 2011

512 697 574 665 650 579 650 579 Operating costs exclude extraordinary effects Q1 2011 Q2 2011 Q3 2011 Total Recurring Q2 2011 Q3 2011 p g y

Decrease in costs reflects successful implementation of the Integration Plan

19 of 39 / September 2011

with a marked improvement in the cost:income ratio …with a marked improvement in the cost:income ratio

Significant improvement in efficiency in Q3 2011

Recurring cost:income ratio(1) Recurring profit before provisions(1)

g p y

458 383 387 458 +18% 7.6% 7.5% 63.5% 55.9% 62.7% 55.8% 55.2% 49.3% 6.5% Q1 2011 Q2 2011 Q3 2011 Q1 2011 Q2 2011 Q3 2011

Clear signs of significant progress in the Group’s early retirement plan and restructuring

Staff costs and administrative expenses Depreciation and amortisation

20 of 39 / September 2011

(1) Includes recurring operating costs

Provisioning Provisioning

Increase in provisions (€m)

Increase in provisions in Q3

Q3 2011 Q2 2011

p Q 2011

Q3 2011 Q2 2011 Additions to specific provisions 213 100 Use of Generic provision 390 246

As of the end of September, generic provisions

exceeded one billion Euros

Countercyclical impact of generic provisions Increase in recurring allocations to provisions

Total specific provisions 603 346 Provisions for foreclosed assets and other provisions 35 72

Increase in recurring allocations to provisions,

which remain high, reaching €638m, with an implied cost of risk of 134bp (1)

Increase in restructuring provisions for branch

closures

Total provisions 638 418 Cost of risk (1) 134 pb 87 pb

closures

Restructuring provision 81 Total Provision Effort 719 418 21 of 39 / September 2011

(1) Annualised

Profit attributable to the Group reached €295m in September 2011 Profit attributable to the Group reached €295m in September 2011

295

Profit for the quarter attributable to the Group (€m)

Net interest income improved in

an adverse operating environment in which balance h t t th i i th

Q3 2011

90

sheet strengthening remains the top priority

Significant allocations to

i i

Q2 2011

114

provisions

Q1 2011

91 9M 2011

22 of 39 / September 2011

Contents Contents

1. Q3 2011 highlights and Strategic Plan 2. Key financial data 3. Income statement 4 Balance sheet and liq idit 4. Balance sheet and liquidity 5. Risk management and capital strength 6. Group objectives

23 of 39 / September 2011

Steady improvement in customer funds Steady improvement in customer funds

Customer funds (€bn) Funding structure Customer deposits -3.5bn: 2.2bn Securitisation funds 1.4bn IPO and transfer to other retail liabilities

30% 26% 233.7 228.0 29 8 45 5 62.4 56.0 20.9 20.7 70% 74% 114.9 111.4 29.8 45.5 Dec 2010 Sep 2011 Marketable securities and subordinated liabilities Dec 2010 Sep 2011 Core customer deposits Other customer deposits

• Changes in customer deposits over the quarter reflect customer loyalty and strengthened

customer relationships by migrating balances from deposits to shares

• Priority given to improving the funding structure
• Changes in customer deposits over the quarter reflect customer loyalty and strengthened

customer relationships by migrating balances from deposits to shares

• Priority given to improving the funding structure

Customer deposits Marketable and subordinated securities Off-balance-sheet assets

24 of 39 / September 2011

y g p g g y g p g g

Liquidity covered beyond 2013 Liquidity covered beyond 2013

Schedule of maturities (€m)

(€m) Liquid assets cover maturities between 2011 and 2013

17.304

(€m) Debt issuance capacity (Covered Bonds) 14,705 Liquid assets (1) 16,047 Liquid assets + Debt issuance capacity 30,752 Maturities between 2011 and 2013 25,090 2

Commercial gap reduction of

Most expensive

62.1% of wholesale funding consists of mortgage covered bonds

9 047

17.304

reduction of €12bn

Most expensive funding matures

805 570 9,047 266

7.724 6.548 8.637

1 726 3,013 3,060 5,423 2,978 6,029 2,546 7,802 20 1,496 324 5,224 1,601 250 519 640 75 100 300 210

2.150 4.961 3.438 1.355 2.621 1.699 127

1,726 , 715 640 2011 2012 2013 2014 2015 > 2015 2017 2018 2019 2020 2021+ Mortgage covered bonds Public sector covered bonds Senior debt GGB Subordinated debt Retail senior bonds

25 of 39 / September 2011

(1) At market value including ECB-mandated haircuts. (2) Includes €675m of promissory notes and commercial paper not included in the schedule of maturities

Short term wholesale funding level unchanged over the quarter Short-term wholesale funding level unchanged over the quarter

(€m)

Market accessibility

• Interbank and

commercial paper 4%

Jun ’11 Sep ’11 Central counterparties (CCPs) 19,678 23,857

• Net position with

ECB 34%

p ( ) , , Bilateral Contracts 7,808

(447)

• CCPs

63%

Total short‐term repo 27,486 23,410 ECB (net position) 8,500 13,100

• Bilateral contracts
• 1%

Interbank and Commercial Paper 2,359 1,535 TOTAL 38 345 38 045

Increased use of ECB facility, without affecting liquid assets Increased use of ECB facility, without affecting liquid assets

TOTAL 38,345 38,045

26 of 39 / September 2011

Gradual deleveraging on the asset side Gradual deleveraging on the asset side…

Net loans and advances to customers (€bn) ( )

Net loans 5.9 bn

195.1 1.3 2.6 196.3 190.4

Repo transactions 1.4 bn

187.8

Total reduction 7.3 bn

Dec 2010 Sep 2011 Core loans and advances to customers Repo transactions

27 of 39 / September 2011

contributing to an improvement in the loan to deposit ratio …contributing to an improvement in the loan-to-deposit ratio

Reduction of the loan-to-deposit ratio

Data in €bn

135.6% 121 4%

196.3 190 4

121.4%

144.7 156.9

196.3 190.4 29.8 45.5 114.9 111.4 Dec 2010 Sep 2011

(1)

Loans and advances to customers Customer deposits Other deposits

(1)

28 of 39 / September 2011

(1) Includes repos and single-certificate covered bonds

Market shares increased in a complex environment Market shares increased in a complex environment

Market shares in resident private sector deposits Market shares in lending to resident private sector 10.7% Market shares in resident private sector deposits Market shares in lending to resident private sector

= +45bp

10.2% 11.1% 11.1% Dec 2011 Aug 2011 Dec 10 Aug 11

Increase in deposit market shares in a difficult operating environment and in the midst of an ongoing integration process Increase in deposit market shares in a difficult operating environment and in the midst of an ongoing integration process

29 of 39 / September 2011

Source: Boletín Estadístico and balance sheet series of the Bank of Spain

Contents Contents

1. Q3 2011 highlights and Strategic Plan 2. Key financial data 3. Income statement 4 Balance sheet and liq idit 4. Balance sheet and liquidity 5. Risk management and capital strength 6. Group objectives

30 of 39 / September 2011

Bankia has a diversified loan portfolio Bankia has a diversified loan portfolio

16 3% 1 8% 15 4% 3 8% 2 2% 13 0% 44 2% 100% 3 3% 16.3% 1.8% 15.4% 3.8% 2.2% 13.0% 44.2% 100% 3.3% 87 7 4 197 26 7 32 3 30

Public Sector Real estate development & construction Construction (unrelated to development) SMEs &

• thers

Large corporates Retail mortgages Households:

• thers

Other Total Gross Loans

31 of 39 / September 2011

% of gross loans and advances

Overview of Bankia’s provisions and coverage Overview of Bankia s provisions and coverage

Level of provisions (€m)

Specific

NPA coverage ratio Sep 2011

1,029 24 1,310 p Generic Country risk Foreclosed and 8,362

g p Foreclosed/acquired assets (1) 26.6%

5 998 acquired assets

Non-performing (2) 48.3% Substandard 10 9%

5,998

Substandard 10.9% Total non-performing and substandard 29.0%

Real estate sector provisions (2) + collateral (including Banco de España haircuts) R l t t

Sep 2011

Real estate sector provisions (2) + collateral (including Banco de España haircuts)

• For total real estate construction and development portfolio
• For real estate construction and development NPLs

Real estate construction and development portfolio 85% 100%

32 of 39 / September 2011

(1) Foreclosed and acquired assets include specific provisions (2) Includes all provisions (specific, generic and substandard)

Above industry average NPA performance Above-industry-average NPA performance

NPA ratio: Credit institutions vs Bankia

(1)

P i it bj ti f th G

7.15% 7.09%

Priority objective for the Group Specific management plans: Comprehensive approach to the Comprehensive approach to the recovery process High resource allocation, from sales of foreclosed assets to completion of the recovery process

Aug 2011 Sep 2011

Credit institutions Bankia Credit institutions Bankia

33 of 39 / September 2011

(1) NPA ratio of "Other Resident Sector" loans of credit institutions (banks, savings banks, credit cooperatives, specialised credit institutions and the state financial agency ICO) for August 2011 (latest available)

Significant improvement in foreclosed/acquired asset portfolio Significant improvement in foreclosed/acquired asset portfolio following BFA spin-off

Foreclosed/ acquired assets (€m) (1)

4,586 4,891

90% of the portfolio is concentrated in liquid real

estate assets: mortgages and completed buildings

More

than 60%

• f

the foreclosed/acquired

Distribution by type of asset

Jun 2011 Sep 2011

More than 60%

• f

the foreclosed/acquired assets in the portfolio are mostly located in Madrid, Catalonia and Valencia

27% coverage ratio

Mortgages 54% Completed buildings 35%

Assets sold in 2011: €381m, a total of 2,916

units in the year to September 2011

Other 4% Buildings under construction 7% 34 of 39 / September 2011

(1) Amount adjusted to take account of sales between Bankia and BFA pending at September 2011

Low sovereign debt exposure Low sovereign debt exposure

Exposure

to sovereign debt, including Treasury bills equal to

€m Total % of total AFS HTM Spain

11,547 82% 6,355 5,192

including Treasury bills, equal to 43% of total assets and 5% of the

• n-balance-sheet portfolio of fixed

income securities

Low

sensitivity to interest rate

France

1,050 8% 1,050

Italy

1,000 7% 1,000

Low

sensitivity to interest rate fluctuations

€7.7bn at a fixed rate with a duration

• f 3.8 years and €6.3bn with a

Belgium

300 2% 300

Germany

100 1% 100

hedged interest rate at 192bp

TOTAL

13,997 6,455 7,542

35 of 39 / September 2011

Note: As of 30 September 2011. Nominal amounts.

Strong capital position following the IPO Strong capital position following the IPO

Q3 2011 Bankia core capital position (Basel II)

Data in %

0.1% 1.8 % 9 8 %

17,236– 18,236

7.9% 9.8 %

Core Capital Jun 2011 IPO Organic growth Core Capital Sept 2011

€16,118m of highest quality core capital (Shareholders’ equity, with just €145m of minority interests) Core Tier 1 capital ratio of 9.8% Bankia currently fulfills EBA’s new minimum capital requirements for June 2012

36 of 39 / September 2011

Contents Contents

1. Q3 2011 highlights and Strategic Plan 2. Key financial data 3. Income statement 4 Balance sheet and liq idit 4. Balance sheet and liquidity 5. Risk management and capital strength 6. Group objectives

37 of 39 / September 2011

Objectives for the fourth quarter of 2011 Objectives for the fourth quarter of 2011

Projections based on the economic context Capital Optimisation I t f b i b i i Capital Optimisation Improvement of basic business margins Complete implementation of the Integration Plan Improvement of basic business margins Complete implementation of the Integration Plan Complete implementation of the Integration Plan Further improvements in operational efficiency Complete implementation of the Integration Plan Further improvements in operational efficiency Launch of Cost Reduction Plan Aggressive plan to combat default

38 of 39 / September 2011

Th k f tt ti Thank you for your attention

Investor Relations Email: ir@bankia.com

39 of 39 / September 2011