Liberbank : Presentación al mercado

6th September 2017

Manuel Menéndez, CEO Jesús Ruano, CFO

Juan Pablo López, Deputy CFO

Disclaimer

This presentation is not an offer of securities for sale, and is not for publication, release, disclosure or distribution, directly or indirectly, in the United States, Canada, Japan or Australia, and may not be taken, copied, forwarded, distributed or transmitted in or into the United States, Canada, Japan or Australia or any other jurisdiction where such offer, publication, release, disclosure or distribution would be unlawful. This presentation does not constitute an offer of securities to the public in the United Kingdom or in any jurisdiction. The distribution of this presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions.

The securities of Liberbank S.A. (the "Bank") have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or any other jurisdiction of the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Consequently, the securities may not, directly or indirectly, be offered, sold, taken up, exercised, resold, renounced, transferred or delivered, directly or indirectly, within the United States except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. There will be no public offer of the Bank's securities in the United States. Neither this presentation (including any materials distributed in connection with this presentation) nor any part or copy of it may be taken, transmitted or distributed, directly or indirectly, into or within the United States, its territories or possessions.

The Bank's securities have not been and will not be registered under the applicable securities laws of Japan, Canada or Australia and, subject to certain exemptions, may not, directly or indirectly, be offered or sold in, or for the account or benefit of any national, resident or citizen of, Japan, Canada or Australia. Any failure to comply with these restrictions may constitute a violation of United States, Japanese, Canadian or Australian securities laws.

Nothing in this presentation constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Investors and prospective investors in the securities of the Bank are required to make their own independent investigation and appraisal of the business and financial condition of the Bank.

This document is not a prospectus but an advertisement. In the event of an offering of securities by the Bank, investors should not subscribe for or purchase such securities except on the basis of the information contained in a Spanish prospectus (including any amendment or supplements thereto) comprised of a registration document and a securities note which has to be approved by the Comisión Nacional del Mercado de Valores (the "CNMV") and published by the Bank and made available on the Bank's website (www.liberbank.es).

This presentation has been prepared by the Bank, has not been independently verified and has not been approved by any regulatory authority. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or any other material discussed at the presentation, or on its completeness, accuracy or fairness. The information and opinions contained in this presentation and any other material discussed at the presentation are provided as at the date of this presentation and are subject to change without notice. Neither the Bank nor any other party is under any duty to update or inform you of any changes to such information. No representation or warranty, express or implied, is made as to the truth, fullness, accuracy, reasonableness or completeness of the information or opinions contained herein (or whether any information has been omitted from the presentation) or any other information relating to the Bank, its subsidiaries or associated companies, whether written, oral or in visual or electronic form, and howsoever transmitted or made available by or on behalf of the Bank, any of its affiliates or agents, or any of such persons' directors, officers, employees or advisors or any other person and any reliance you place on such information or opinions will be at your sole risk. In addition, no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by the Bank or any other person in relation to such information or opinions or any other matter in connection with this presentation or its contents or otherwise arising in connection therewith.

This presentation includes forward-looking statements. All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding the Bank's intentions, beliefs, current expectations, targets and projections about future events, business strategy, management plans and objectives or future financial position, operations and customers, are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Bank's actual results, performance or achievements, or industry results, to be materially different from those expressed or implied by these forward-looking statements. These forward- looking statements are based on numerous assumptions regarding the Bank's present and future business strategies, practical future application of contractual obligations and the environment in which the Bank expects to operate in the future. The Bank cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition, prospects, growth, strategies and the development of the markets in which the Bank operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. Moreover, any target included in this presentation and any relevant underlying projections are based on future events and management actions that are characterized by subjectivity and unpredictability, especially in terms of the risk that the forecasted events and actions may not take place or may take place at a different time or to a different extent than anticipated, as well as the fact that certain events and actions may not have been foreseeable at the time these projections were drafted. Consequently, the difference between actual results and the Bank's target may be substantial. As there is always uncertainty with respect to any projection, potential investors must not rely on the projections or on the Bank's targets in making investment decisions in respect of the Bank's securities. Forward-looking statements speak only as of the date of this presentation and the Bank expressly disclaims any obligation or undertaking to release any update of or revisions to any forward looking statements in this presentation, any change in the Bank's expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Market data used in this document not attributed to a specific source are estimates of the Bank's management and have not been independently verified. The information and opinions contained in this document are provided as at the date of the presentation and are subject to change.

Certain financial and statistical information contained in this document is subject to rounding adjustments. Accordingly, any discrepancies between the totals and the sums of the amounts listed are due to rounding. Certain financial measures used by the Bank's management that are included in this document have not been subject to a financial audit. In addition, certain figures contained in this document, which have also not been subject to financial audit, are pro forma figures. This presentation also includes certain non-IFRS-EU (International Financial Reporting Standards, as adopted by the European Union) financial measures which have not been subject to a financial audit for any period.

1. Highlights

1. Enhanced asset quality

2. Strong track record

3. Reinforcement of NPA coverage and acceleration of NPA reduction

4. Rights issue and solvency
5. Liquidity position
6. Business plan and financial targets

3

Highlights

Rights issue to accelerate NPAs reduction and improve shareholders' returns

Best-in-class NPAs coverage and further acceleracion of NPAs reduction

 Liberbank will carry out a € 500m rights issue already pre-underwritten(1) with pre-emptive rights in order to reinforce significantly the NPA coverage ratios and accelerate further NPAs reduction.

 Support from the shareholders. Oceanwood Capital Management LLP(2) (12.6%), Aivilo Spain (7.4%), and Corporacion Masaveu (5.0%) have declared their intention to take up their pro- rata share in full. Banking Foundations have declared their intention to at least tail-swallow.

 Aligned interests. All Board and Management Committee members commit to invest in the rights issue via their personal account.

Strong capital position and sustainable cash dividend policy

 CET1 FL pro-forma ratio of 11.6%. Target to reach 12.0% in the short term.

 Room to improve solvency further if the bank obtains the approval to migrate to IRB models. Calendar continues well on track. Liberbank estimates that, subject to the ECB approval, RWAs could fall by more than € 3.0bn only in the mortgage book.

 Target to resume cash dividend policy in 2018 (20% payout ratio) increasing thereafter to 40% in 2020.

 Liberbank plans to distribute the excess capital above 12.0% (CET1 FL) to improve profitability and support extraordinary remuneration to shareholders.

 The liquidity of the stock will increase significantly as a result of the rights issue.

1. Subject to certain conditions 4

2. Including financial derivatives