MATERIAL DISCLOSURE

Pursuant to article 228 of the recast Stock Market Act, implemented by Legislative Royal Decree 4/2015 of 23 October, Bankia, S.A. notifies that:

  • The European Central Bank (ECB), once known the results of the supervisory review and assessment, has assigned Bankia a Pillar 2 requirement of 2.0%.

    InscritaenelRegistroMercantildeValencia,Tomo9.341,Libro6.623,Folio104,Hoja:V-17.274.CIF:A-14010342

  • Thus, during 2018 a minimum Common Equity Tier 1 (CET 1) of 8.563% and a minimum Total Capital ratio of 12.063% are required, both measures in relation to transitional ("Phase-In") regulatory capital.

  • These capital ratios include the Pillar 1 minimum requirement (4.5% CET1 and 8.0% Total Capital); the Pillar 2 requirement (2.0%); the capital conservation buffer (1.875%); and the requirement arising from the Bank's status as an Other Systemically Important Institution (O-SII), which for 2018 has been set at 0.1875%.

At 30 September 2017, Bankia's Phase-In CET1 ratio stood at 15.81%, while its Total Capital ratio was 18.75%. At that date, Bankia's "Fully Loaded" ratios were 14.16% and 17.18% for CET1 and Total Capital, respectively.

This decision by the ECB means that the consolidated CET1 level below which Bankia, S.A. would be obliged to calculate the maximum distributable amount that would limit its discretionary distributions (dividend payments, AT1 coupons payment and/or variable remuneration), commonly referred to as the activation level of the maximum distributable amount (or MDA trigger), stands at 8.563% for CET 1 and 12.063% for Total Capital.

Summary table of minimum prudential requirements for 2018:

CET 1

CET 1

Total Capital

Total Capital

Phase In

Fully Loaded

Phase In

Fully Loaded

Pillar 1

4.50%

4.50%

4.50%

4.50%

Pillar 2R

2.00%

2.00%

2.00%

2.00%

Capital conservation buffer

1.875%

2.50%

1.875%

2.50%

O-SII Buffer

0.1875%

0.25%

0.1875%

0.25%

Tier 1 + Tier 2

-

-

3.50%

3.50%

Total

8.5625%

9.25%

12.0625%

12.75%

Bankia ratios

17.18%

Capital buffer

+443 bps

InscritaenelRegistroMercantildeValencia,Tomo9.341,Libro6.623,Folio104,Hoja:V-17.274.CIF:A-14010342

Bankia capital levels at September 2017

14.16%

+725 bps

+491 bps

+669 bps

Considering the capital levels mentioned above, these regulatory requirements are not affected by any of the limitations mentioned before.

The above is notified as a Material Disclosure for all pertinent purposes.

Madrid, 13 December 2017

BANKIA S.A.

Bankia SA published this content on 13 December 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 December 2017 19:16:03 UTC.

Original documenthttp://www.bankia.com/recursos/doc/corporativo/20170123/ingles/20171213-hr-bkia-srep-eng.pdf

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