Bankia : Communication from the FROB about the merger between Bankia and Banco Mare Nostrum.

Inscrita en el Registro Mercantil de Valencia, Tomo 9.341, Libro 6.623, Folio 104, Hoja: V-17.274. CIF: A-14010342

Pursuant to article 228 of the consolidated text of the Securities Market Act approved by Legislative Royal Decree 4/2015 of 23 October, Bankia, S.A. hereby reports that today the FROB has announced that its Governing Committee has agreed that a merger between Bankia and Banco Mare Nostrum is the best strategy to optimise the recovery of public funds through a future divestment process, meaning that both institutions should initiate the corresponding actions, as appropriate.

Bankia therefore states that, in light of the aforementioned communication by the FROB, it shall shortly propose the start of the necessary actions to the Board of Directors in order to carry out an independent analysis of the operation. It also states that no decision has yet been taken and that there is currently no agreement or proposal of any type relating to an analysis of the terms of a possible merger.

The merger process, if applicable, would also require the approval of the Boards of Directors of both institutions and their Shareholders' Meetings, and compliance with the legal requirements established in the applicable national and EU legislation.

Bankia shall promptly disclose any further information that may be relevant to the markets. The above is notified as a material disclosure for all pertinent purposes.

Madrid, 15 March 2017

BANKIA, S.A.

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