Banco Sabadell3Q13 Results

October 24th, 2013

Disclaimer

Banco Sabadell cautions that this presentation may contain forward looking statements with respect to the business. financial condition. results of operations. strategy. plans and objectives of the Banco Sabadell Group. While these forward looking statements represent our judgement and future expectations concerning the development of our business. a certain number of risks. uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include. but are not limited to. (1) general market. Macroeconomic. governmental. political and regulatory trends. (2) movements in local and international securities markets. currency exchange rate. and interest rates. (3) competitive pressures. (4) technical developments. (5) changes in the financial position or credit worthiness of our customers. obligors and counterparts. These risk factors could adversely affect our business and financial performance published in our past and future filings and reports. including those with the Spanish Securities and Exchange Commission (Comisión Nacional del Mercado de Valores).

Banco Sabadell is not nor can it be held responsible for the usage. valuations. opinions. expectations or decisions which might be adopted by third parties following the publication of this information.

Financial information by business areas is presented according to GAAP as well as internal Banco Sabadell group´s criteria as a result of which each division reflects the true nature of its business. These criteria do not follow any particular regulation and can include forecasts and subjective valuations which could represent substantial differences should another methodology be applied.

The distribution of this presentation in certain jurisdictions may be restricted by law. Recipients of this presentation should inform themselves about and observe such restrictions.

These slides do not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any securities nor shall they or any one of them form the basis of or be relied on in connection with any contract or commitment whatsoever.

1. 3Q in summary

2. 3Q13 Results

3. Commercial activity and liquidity

4. Risk and capital management

5. Managing real estate assets

6. New strategic business plan

Index

332222

1. 3Q13 in summary

3333

3Q13 in summary

Net interest income has reached its trough and is increasing

Strong commercial activity with market share gains in several segments of the market

The old B. CAM network is closing the gap with the Sabadell network in terms of profitability and cross selling

The reclassification of restructured loans within the Sabadell-B.CAM perimeter has been completed implying 321 million euros in provisions which were already booked in the second quarter; reclassification of the additional perimeter will take place in 4Q

Core capital ratio of 11.4% following the capital increase of 1.4 billion euros

The main focus is now on profitability and revenue improvement in the acquired businesses

4444

2. 3Q13 Results

5555

September 2013 Results

Sep. 12 Sep. 13 % var 13/12

Net Interest Income 1,380.7 1,317.0 -4.6%Equity Method & Dividends 2.0 13.2 --Commissions 453.4 549.9 21.3%Trading Income & Forex 408.4 1,276.2 212.5%Other Operating Results -90.7 -143.8 58.5%Gross Operating Income 2,153.8 3,012.4 39.9%Personnel Costs -709.4 -808.6 14.0%Administrative Costs -361.1 -431.8 19.6%Depreciations -112.8 -161.0 42.7%Pre-provisions Income 970.5 1,610.9 66.0%Total Provisions & Impairments -2,170.5 -1,334.3 -38.5%Gains on sale of assets 29.1 15.3 -47.4%Badwill 933.3 0.0 --Profit before taxes -237.6 291.9 --Taxes and others 328.2 -105.8 --

Attributable Net Profit 90.6 186.1 105.4%

Note: 2013 includes four months of the BMN-Penedés network and three months of Lloyds Spain. Euros in million 6666

Trough in net interest income …

Net interest income evolutionEuros in million

424.4

407.3447.0

526.4487.3

451.2

407.3

26.87.3

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Net interest income has reached the

turning point and increases by 8.8% QoQ

4.2% growth QoQexcluding BMN-Penedés

and Lloyds Spain

414.6451.2

Contribution BMN-Penedés and Lloyds Spain

7777

… driven by further reduction of the cost of customer funds …

Share of sight deposits out of total customer fundsIn percentage

Contractual rates on term depositsIn percentage

34% 37%

66% 63%

Dec 12 Sep 13

3.32% 3.26% 3.35%3.58%

3.36%3.13%

2.84%

2.80%

2.50%

1.61%1.85%

3.06%

3.39%

2.16%

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Sight Other term fundsStock New production/renewals

The cost of new deposits is declining. Sight deposits increase their weighting

8888Note: Contractual rates on term deposits do not include BMN-Penedés nor Lloyds Spain.

… and active price management

Loan book spreads, new production/renewalsBasis points

Re-priced loans, quarterly evolutionEuros in million

225

272 264

296

405 410 428 411 412

256

388371

361 363 345

389385

376

215

329

266247

278

340

239 254249

172151146

123130

116124

89

179

4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

10,713

12,291

10,04811,085

11,558

10,117

8,717

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Credits LoansMortgages to individuals

Note: The front book spreads are weighted averages in the quarter. Re-priced loans do not include BMN-Penedés nor Lloyds Spain. 9999

Lower cost of customer funds

Customer loan yield and cost of customer funds In percentage

2.21%

1.59%1.44%1.36%1.70%

2.83%

1.48%

2.03%2.00%2.12%2.11%2.06%2.00%1.97%1.85% 2.07%1.87%

2.19%2.09%

3.66%

5.56%4.93%

4.21%3.79%

3.53% 3.49%3.50% 3.65%3.86% 3.99%4.12% 4.22% 4.28% 4.16%

4.05% 4.02% 3.94%

3.49%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Customer loan yield Cost of customer funds

10101010

Having reached the turning point in the customer spread and NIM

Margin evolutionIn percentage

2.06% 2.11% 2.16%2.02%

1.93%

1.75%1.60% 1.56% 1.61%

1.42%1.28% 1.21%

1.14%

1.59%1.62%

2.16%

1.00%1.05%

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Customer spread Net interest margin

11111111

Commissions continue to grow

24.8 25.2 26.6 25.9 28.6 31.4

47.5 48.2 55.8 54.7 52.4 53.3

59.9 73.683.6 94.0 90.1

108.58.7

26.1

53.8

105.9

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Commission income evolutionEuros in million

Commissions 9M13:

+21.3% YoY

+17.3% YoY, excl. BMN-

Penedés and Lloyds Spain

188.2

133.5

155.3164.6

175.3 168.4

193.2

Asset Mgmt1 ServicesLending

Commissions from fixed income issuance1 Including mutual funds commissions and pension funds and non-life insurance brokerage

12121212

Personnel expenses are kept under control …

Personnel expenses evolutionEuros in million

182.2221.5

292.2 281.2258.4

7.830.5

253.0253.3

0.35.92.0

5.8

5.8

3.51.9

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

188.0

227.3

294.2 287.1260.3 264.6

Personnel expenses 9M13:

+14.0% YoY

* Including Banco CAM, BMN-Penedés and Lloyds Spain in 2012 and excluding non-recurrent expenses.

Personnel expenses on a like-for-like basis* 9M13:

-13.2% YoY

283.7

Recurrent Non-recurrentBMN-Penedés and Lloyds Spain

13131313

… as well as general expenses

General expenses evolutionEuros in million

93.8113.1

151.9 153.1 147.1

11.5

135.7 135.1

2.4

0.4

1.9

0.9

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

General expenses 9M13:

+19.6% YoY94.2

General expenses on a like-for-like basis* 9M13:

-9.5% YoY

115.1

154.0151.9 147.1

138.1146.6

14141414

Recurrent Non-recurrentBMN-Penedés and Lloyds Spain

* Including Banco CAM, BMN-Penedés and Lloyds Spain in 2012 and excluding non-recurrent expenses.

Optimising the network

48.2%46.0%46.3%

51.1%49.7%

45.7%

40.8%

Mar.12 Jun.12 Sep.12 Dec.12 Mar.13 Jun.13 Sep.134Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Branches Employees

1,383

10,675 10,550

1,382

2,202

16,754

Banco CAM

16,413

2,2041,898

15,59614,957

1,889

2,382

17,253

BMN-Penedés and Lloyds Spain

17,233

2,254

Employee and branch evolutionIn number

Cost income evolutionIn %

*

* Following the closure of 128 branches related to the integration of BMN-Penedés, which took place in October 2013Note: Cost income ratios are adjusted for non-recurrent trading income 15151515

3. Commercial activity and liquidity

16161616

Growing the customer base …

6.2 million customers including BMN-Penedésand Lloyds Spain

Remarkable success in customer gathering

8,100 new customers every

week

Jul. 13 Aug. 13 Sep. 13 3Q13

Individuals 35,582 22,870 29,885 88,337

Companies 8,226 4,017 5,676 17,919

The main driver is customer value, particularly in the old B. CAM network

17171717Note: Customer gathering numbers do not include BMN-Penedés nor Lloyds Spain.

… and gaining market share both in individuals …

5.41%Aug. 12

Aug. 13

Household deposits1 Household loans

5.16%Aug. 12

Aug. 13

+145 bps (+44 bps organic growth)

+101 bps (+1 bps organic growth)

6.17%6.86%

Payroll accounts Transactionality2

4.96%Jan. 13

Sep. 13

+24 bps

6.43%Sep. 12

Sep. 13

+76 bps

5.20% 7.19%

Contribution BMN-Penedés and Lloyds Spain

Note: Payroll accounts and transactionality do not inlcude BMN-Penedés nor Lloyds Spain1 Including term and sight deposits and repos2 Including cheques, transfers, SEPA transfers, receivables and promissory notes 18181818

… as well as in companies

Corporate credit ICO loans (publicly subsidised)

12.31%Sep. 12

Sep. 13

8.67%Aug. 12

Aug. 13 10.52%

+185 bps (+148 bps organic gro

26.72%

+1441 bps wth)

Sight deposits companies Volume at BS card PoS

12.04%

+171 bps 10.33%Jun. 12

Jun. 13

Contribution BMN-Penedés and Lloyds Spain

+85 bps (+42 bps organic growth)

10.82%Aug. 12

Aug. 13 11.67%

Sabadell continues to provide credit to SMEs and corporates19191919Note: ICO and volume at BS card point of sales do not inlcude BMN-Penedés nor Lloyds Spain

Opportunity to gain further market share organically …

There is still room to grow in certain regions

Banco Sabadell market share* by region

Identified regions with more room to grow4.1

15.7 2.3 4.63.1

3.93.1 3.7

14.7

3.8

2,11.0 21.2

8.517.0

3.3

3.3 Spain market share (pro-forma):

7.7%

20202020* Loans and deposits as of June 2013, pro-forma including Banco Gallego.

… and taking advantage of cross selling normalisation in the network

Products per customer* Customer income generation (Euros)

GapGap

Ret

ail b

anki

ng

Ret

ail b

anki

ng

BS B.CAM

* Average number of contracts per principal account holder 21212121

SMEs

SMEs

5.77

5.83

4.96

4.89Jan-13

Sep-13

7.73

7.68

5.89

5.36Jan-13

Sep-13

250

272

253

217Dec-12

Sep-13

4,321

4,174

2,183

2,105Dec-12

Sep-13

Var:

2,216

1,991

-225

2.37

1.79

-0.58Var:

0.88

0.87

-0.01Var:

33

19

-14Var:

Continued high level of commercial gap: €9,005M

1,322

5,8113,439

15,452

815

9,005

2008 2009 2010 2011 2012 9M13

109.2%

121.9%

131.0%

116.6%111.0%

3Q12 4Q12 1Q13 2Q13 3Q13

Customer funds and loans evolution Euros in million

Change in commercial gapEuros in million

Loan to deposit ratioIn percentage

Sep-12 Dec-12 Sep-13% Var.

YoYOn-balance sheet customer funds 75,058 80,179 91,855 22.4%Other on-balance sheet term funds1 47,774 53,095 57,953 21.3%Sight deposits 27,284 27,085 33,902 24.3%

Off-balance sheet funds 20,868 20,659 22,778 9.2%Mutual funds 8,561 8,585 10,052 17.4%Pension funds 3,576 3,709 3,883 8.6%Third party insurance products 7,699 7,313 7,294 -5.3%

Total funds 95,926 100,838 114,633 19.5%Gross loans to customers ex repos 119,371 115,392 118,551 -0.7%1 Other on-balance sheet term funds include term deposits and other funds placed in the retail network: preference shares, mandatory convertible bonds, senior debt, commercial paper and other. Excludes repos. Loan to deposit ratio is adjusted for provisions and intermediary loans such as ICO loans (government subsidy loans) 22222222

Banco Sabadell continues to take advantage of the flight to quality

34,543 33,902

48,122

58,408

28,87427,08527,28427,449

57,953

47,774 53,09553,819

9,693

8,9878,5858,5618,533

10,052

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Evolution of customer funds and mutual fundsEuros in million

Sight deposits On-balance sheet term funds

Sustained high level of customer funds and

mutual funds

Mutual funds

23232323Note: on-balance sheet term funds include term deposits and other funds placed in the retail network: preference shares, mandatory convertible bonds, senior debt, commercial paper and other. Excludes repos.

Maintaining a balanced funding structure …

Group funding structure Group wholesale funding breakdown

Deposits 68.7%

ICO financing 5.0%Repos 5.2%

Retail issues 1.5%

Wholesale funding 19.5%

Prefs 0.1%

Senior debt 1.5%

Covered bonds 62.0%

Prefs + Subordinated

3.5%

ECP 6.8%

Securitisation 18.0%

GGB 8.2%

24242424

… and efficiently managing liquidity

Group wholesale funding maturities Euros in million

ECB liquidity position Euros in million

197

4,386

2,9483,271

3,049

1,681

796

2,674

0

1,000

2,000

3,000

4,000

5,000

4Q13 2014 2015 2016 2017 2018 2019 >2020

Banco Sabadell has no structural funding through the ECB

23,650

20,500

18,00017,000

Dec 2012 Mar 2013 Jun 2013 Sep 2013

Maturity by product type Euros in million

4Q13 2014 2015 2016 2017 2018 2019 >2020 Outst. AmountCovered Bonds (CH) 197 3,311 2,948 2,815 1,906 1,563 796 2,132 15,667Covered Bonds (CT) 0 0 0 0 0 0 0 0 0GGB 0 1,005 0 0 1,066 0 0 0 2,071Senior Debt 0 0 0 157 0 100 0 25 282Preferred Shares and Subordinated Debt 0 0 0 299 77 0 0 499 876Other mid- and long-term financial instrument 0 70 0 0 0 18 0 18 106Total 197 4,386 2,948 3,271 3,049 1,681 796 2,674 19,002

25252525

4. Risk and capital management

26262626

Strong core capital level

Capital actions in 2013: Capital increase of €1.4bn

Core capital evolutionIn %

9.6%

11.4%10.4%

Dec. 12 Jun.13 Sep. 13

Transaction in two stages:

ABB offering: Issue of 366.3 million new shares at €1.64 per share

Rights offering: Issue of 666 million new shares 1:5 (1 new share for every 5 old shares) at a subscription price of €1.1 per share

29292727

Evolution of NPLs and RE assets

Evolution of NPLs, substandard and real estate assets, ex-APSEuros in million

4T12 1T13 2T13 3T13

Ordinary net entries 1,094 388 760 365Change in RE assets 234 394 1 218Net entries + Change in RE assets 1,327 782 761 583Write-offs 387 247 305 105Quarterly change in ordinary non-performing assets 940 535 456 478

4T12 1T13 2T13 3T13NPLs volume ex- reclassified 10,287 10,428 10,883 11,143RE assets 5,926 6,320 6,321 6,539NPLS ex-reclassified+ RE assets 16,213 16,748 17,204 17,682Substandard exposure ex-reclassified 2,844 2,897 2,755 2,246

Total ordinary problematic assets ex-APS 19,057 19,645 19,959 19,928

Reclassified loans 378 1,509Reclassified substandard 1,016Acquired businesses (NPL,RE Assets and substandard) 1,743 234Total problematic assets ex-APS 19,057 19,644 22,077 24,806

Total provisions ex-APS 9,410 9,516 10,581 10,506

Coverage ex-APS 49.4% 48.4% 47.9% 42.4%

The reclassification of restructured loans in the Sabadell-B.CAM perimeter has been completed

Note: 321 million euros of provisions were booked in the second quarter related to the reclassification of refinanced loans in the Sabadell-B.CAM perimeter. Reclassification related to the recently acquired businesses to be done in the following quarter 30302828

NPL ratios by segment

NPL ratios by segment, ex-APSIn percentage

130 basis points of the NPL ratio increase are explained by the reclassification of refinanced

loans, most of which have been in the real estate development and construction segment

31312929Note: NPL ratio is calculated including contingent risk. The reclassification of refinanced loans in the Sabadell-B.CAM perimeter has been completed with a total impact of 321 million euros of provisions, already booked in the second quarter. Reclassification related to the recently acquired businesses to be done in the following quarter

3Q12 4Q12 1Q13 2Q13Reclassified as

NPLsEuros in million

NPL ratios post-reclassifications

Real Estate development and/or construction purpo 26.87% 32.50% 38.38% 42.99% 1,068 55.73%BS stand-alone 25.01% 29.96% 36.03% 41.42% 55.26%

Construction purposes non-related to real estate de 4.28% 5.53% 5.96% 7.94% 5 9.84%BS stand-alone 3.92% 5.04% 5.76% 5.87% 6.62%

Large corporates 6.92% 7.10% 7.40% 7.48% 276 8.91%BS stand-alone 3.43% 3.88% 4.10% 4.16% 6.41%

SME and small retailers and self-employed 7.98% 9.00% 8.98% 9.81% 128 10.93%BS stand-alone 7.26% 7.30% 7.09% 7.84% 7.93%

Individuals with 1st mortgage guarantee assets 6.67% 7.61% 8.07% 8.17% 19 8.78%BS stand-alone 3.82% 4.41% 4.70% 4.96% 5.48%

NPL ratio 8.46% 9.33% 9.69% 10.62% 1,509 12.61%BS stand-alone 6.78% 7.41% 7.98% 9.25% 11.74%

3Q13

Maintaining high coverage levels of credit and real estate exposure

Coverage by segmentSplit between asset protection scheme and rest

3Q13 BS ex-APS APS Total

Real estate assets 44.1% 43.5% 43.8%Real estate development loans 36.9% 46.7% 41.2%Total real estate exposure 39.8% 45.3% 42.3%

Construction 5.1% 37.2% 6.5%Large Corporates 5.1% 45.8% 7.0%SME and small retailers and self-employed 5.9% 16.5% 7.1%Individuals 3.6% 12.1% 4.0%Rest of loan book 4.3% 21.1% 5.2%

Total 9.2% 37.7% 13.3%

Coverage

13.3% coverage of total loans and real estate assets

9.2% coverage of total loans and real estate assets, ex-APS

32323030

5. Managing real estate assets

33333131

Sabadell has a small real estate exposure vs. peers

Real estate exposure net of provisions(Real estate loans + Real estate assets)

% real estate exposure

(over total loan book and real estate assets)

Total loan book +real estate assets

24,266

20,569

15,087

11,919

9,575

Entity 1

Entity 2

Entity 3

Entity 4

Ex-EPA

232,976

124,944

216,744

179,498

132,829 7.2%

6.0%

6.9%

16.5%

10.2%

Note: Banco Sabadell data as of September 2013. Sector data as of June 2013. Source: Semi-annual accounts.Euros in million 34343232

Commercial activity continues to improve …

Sales evolution

Euros in million Number of units

1,232

1,909

9M2012 9M2013

7,738

12,615

9M2012 9M2013

+63%+55%

On track to reach 2013 sales targets:>16,000 units (+17% YoY) Sales totalling over €2.6 billion (+16% YoY)

35353333

356,666 370,216

211,701184,027

2011 2012 2012 2013

… beating overall market trends

Source: Consejo General del NotariadoNote: As sector data is not yet available for the first 9 months we take the trend observed as representative of what will be the full year behaviour.

Number of transactionsUnits

Market Banco Sabadell

Transactions continuously increasing along the Mediterranean coast

-13%

+4%

6,903

13,777

7,738

12,615

2011 2012 9M2012 9M2013

+2.0x+63%

36363434

January - August

6. New strategic business plan

37373535

Sabadell launches a new business plan

The new business plan of Banco Sabadell takes advantage of its potential to improve profitability, on the basis of a coverage ratio above the sector levels, one of the best capital ratios and a strong balance sheet

Medium term financial targets of the new business plan

ROE Double-digitCore Tier I, Basilea III >10%Cost income ratio 40%Loan-to-Deposit Ratio 105%

An achievable plan, even in a scenario of a moderate improvement of the Spanish economy

38383636

Delivery of the new business plan

The new business plan has two different delivery phases

Phase 1

Margins improvement due to the re-pricing of the loan book

Reduction of deposit costs

Convergence in cross selling capacity within the network

Opportunity to gain market share organically

Low sensitivity to the recovery of the economy

Phase 2

Improvement in interest margins due to the increase of interest rates

Loan growth to solvent companies and export segments

Stabilisation followed by a decrease in NPLs

Moderate sensitivity to the recovery of the economy

39393737

Previous business plans have been successfully implemented

Operational transformation preparing

branches for growth‘102008-2010

Significant increase in customer gathering2011-2013

Improving profitability2014-2016

3838

The details of the new business plan will be released at the end of the year

The new business plan is based on:

Successful integration of acquired businesses

Strong commercial platform with a national footprint and a wide client base, well positioned to improve profitability

Launch of Business plan

2014-2016Strong balance sheet allowing for organic growth in an environment where the Spanish economy is gradually recovering

3939Note: BMN-Penedés unification of the operating and technological systems was completed on 12 October, 2013. Lloyds Spain and Banco Gallego integration expected to take place in February, 2014.

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