Banco Popular Espanol : Information regarding the 2016 results of the Supervisory Review and Evaluation Process (SREP) addressed by the European Central Bank.

Microsoft Word - HR SREP 24122015-en

Madrid, 24 December 2015

COMISIÓN NACIONAL DEL MERCADO DE VALORES SIGNIFICANT EVENT

The European Central Bank has recently informed Banco Popular Español, S.A. of the entity's minimum capital requirements based on the results of its supervisory review and evaluation (SREP).

Popular is required to have a Common Equity Tier 1 ratio (phase-in) of 10.25% from January 2016.

This includes the Pillar 1 (4.5%) and Pillar 2 requirements and the capital conservation buffer of 5.75%. It should be noted that the Bank of Spain does not consider it necessary for Popular to have an additional buffer in 2016 due to its status as an other systemically important institution.

These capital requirements would not give rise to any limitation regarding distributions in the form of dividend payments, variable remuneration and interest payable to holders of additional Tier 1 capital instruments.

Popular already had strong solvency ratios in September 2015 as evidenced by its Common Equity Tier 1 ratio of 12.65%. It should also be noted that Popular achieved this capital ratio using its own means, with a mostly company-orientated business model, without requiring any public aid and following the integration of Banco Pastor and Citibank's card business in Spain. Also worth noting is that Popular has not transferred any real estate assets to Sareb.

The entity therefore comfortably meets the supervisor's requirements and has proven it is able to actively manage regulatory requirements. It was also the first Spanish bank to complete the additional Tier 1 capital requirements in February.

Yours sincerely,

José Heraclio Peña Pérez

Vice Secretary to the Board of Directors

Banco Popular Español, S.A. Domicilio Social: Velázquez 34, esq. Goya 35, Madrid. Reg. Mec. de Madrid: T 174, F 44, H 5458, Inscrip. 1ª NIF A-28000727