Liberbank : Presentación de resultados correspondiente al cuarto trimestre de 2016

24 February 2017

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Asset quality

 Fall of NPAs accelerates, € 370m in the quarter, 6% QoQ and 22% YoY.

• The stock of NPLs falls 35% in 2016 with ratio down 621bp.

• Foreclosed assets remain flattish YoY while sales exceed the target.

 Coverage of NPLs(1) stand at 46% with high collateralization and high NPL recognition. Including value of the collateral coverage increases to 122%.

 Recurrent loan impairments continue to normalize.

Solvency

 After the end of the APS, the CET1 ratio stands at 12.2% and 10.7% under phased-in and fully loaded Basel III criteria.

 Liberbank's leverage ratio stands above its peers, 6.0% as of Dec16.

Business trends

 Continued positive trend in new production (+29% vs 2015), focused on corporates and consumer.

 Good trend in volumes. Performing loan book and customer funds +1.5% and +1.7% YoY respectively.

Operating profit

 NII remains resilient despite headwinds while customer spread recovers,

+6bp QoQ and recurrent fees improve QoQ and YoY.

 Liberbank booked a provision to fully cover any potential claims from outstanding mortgage floors.

1. It includes provisions related to mortgage floors

   Agenda

   1. Asset Quality
2. Solvency
3. Commercial Activity
4. Results analysis
5. Liquidity and Fixed Income portfolio
6. Appendix