2010 ”la Caixa” Annual Report · CAJA DE AHORROS Y PENSIONES DE BARCELONA - ”LA CAIxA”...

2010 ”la Caixa” Annual ReportLeadership, trust and social commitment

2010 ”la Caixa” A

nn

ual R

epo

rt

”lA CAixA” GROUP HiGHliGHTSFinancial information

CHANGE

Figures in millions of euros 2010 2009 AMOUNT %

Balance SheetTotal assets 285,724 271,873 13,851 5.1Total Banking Business volume 437,443 415,825 21,618 5.2

Loans and credits, gross 189,546 178,026 11,520 6.5Total customer funds 247,897 237,799 10,098 4.2

Investee portfolio:Market value of listed companies 18,685 20,118 (1,433) (7.1)Unrealised gains on listed companies 2,709 3,945 (1,236) (31.3)

income StatementNet interest income 3,152 3,932 (780) (19.8)Recurring gross income 6,745 7,187 (442) (6.1)Recurring net operating income 3,323 3,622 (299) (8.3)Recurring profit before non-controlling interests 1,822 2,004 (182) (9.0)Recurring profit attributable to the ”la Caixa” Group 1,507 1,710 (203) (11.9)Net extraordinary profit (200) (200) 0 –Profit attributable to the ”la Caixa” Group 1,307 1,510 (203) (13.4)Efficiency and ProfitabilityRecurring efficiency ratio (Administrative expenses / Gross income) 43.6% 42.9% 0.7ROE (Recurring attributable profit / Average own funds) 9.3% 11.3% (2.0)ROA (Net recurring profit / Average total assets) 0.7% 0.8% (0.1)RORWA (Net recurring profit / Risk-weighted assets) 1.4% 1.6% (0.2)Risk ManagementNPL ratio 3.71% 3.42% 0.29Provisions for credit losses 5,025 3,914 1,111NPL coverage ratio 70% 62% 8NPL coverage ratio including mortgage collateral 140% 127% 13”la Caixa” liquidity 19,638 21,208 (1,570)Capital Adequacy - BiS iiCore capital 8.6% 8.7% (0.1)Tier 1 9.9% 10.4% (0.5)Capital ratio (BIS II ratio) 11.8% 11.0% 0.8Own funds 17,421 16,696 725 4.3Eligible capital 19,198 17,251 1,947 11.3Surplus capital 6,130 4,667 1,463 31.3Risk-weighted assets (RWA) 163,348 157,300 6,048 3.8Commercial activity and resources (number)

Employees – ”la Caixa” 25,288 24,944 344 1.4– ”la Caixa” Group 28,651 27,505 1,146 4.2

Branches 5,409 5,326 83 1.6Self-service terminals 8,181 7,951 230 2.9Cards in circulation – ”la Caixa” 10,344,092 10,293,683 50,409 0.5POS terminals 169,966 167,993 1,973 1.2Línea Abierta – ”la Caixa” internet channel

– Total customers 6,620,148 6,020,192 599,956 10.0– Users 3,301,264 2,964,355 336,909 11.4

Corporate ResponsibilityDirect contribution of ”la Caixa” operations to Spain’s GDP 0.49% 0.49%Diversity: % men / women employed 52/48 53/47Number of projects financed in line with the Equator Principles 55 65Number of employees taking part in the Corporate Volunteer programme 3,286 3,061 225 7.4Number of microloans granted 36,845 32,008 4,837 15.1

Welfare ProjectsBudget 2011 Millions of euros %

Social programmes 335 67.0Environmental and scientific programmes 68 13.6Cultural programmes 64 12.8Educational and research programmes 33 6.6Total 500 100

2010”la Caixa” Annual Report

Leadership, trust and social commitment

CAJA DE AHORROS Y PENSIONES DE BARCELONA - ”LA CAIxA”Avenida Diagonal, 621-629. 08028 Barcelona, SpainTelephone: (34) 93 404 60 00Fax: (34) 93 339 57 03Telex: 52623-CAVEA E and 50321-CAIX E

Websitewww.laCaixa.es

IDENTIFICATION PARTICULARS

CAJA DE AHORROS Y PENSIONES DE BARCELONA, ”LA CAIXA”, was established on 27 July 1990 by the mergerof Caja de Ahorros y Monte de Piedad de Barcelona, founded in 1844, and Caja de Pensiones para la Vejez y deAhorros de Cataluña y Baleares, founded in 1904.

It is registered under number 1 in the Register of Catalan Savings Banks of the Directorate-General of Financial Policyof the Department of Economy and Finance of the Catalonia Autonomous Community Government.

On 16 November 1990, it was entered under number 3003 in the Barcelona Mercantile Register, in volume 20,397,page 1, sheet B-5614, first entry. It is registered with code number 2100 in the Bank of Spain’s Special Register ofGeneral Popular Savings Banks.

The Bylaws of ”la Caixa” were approved by the Department of Economy and Finance of the Catalonia AutonomousCommunity Government and may be examined by that Department, at the Bank of Spain or at the MercantileRegistry.

The Board of Directors calls the Annual General Assembly to be held during the first half of the calendar year. Thenotice of the Assembly is published in the «Boletín Oficial del Estado» (Official State Gazette), in the «Diario Oficialde la Generalitat de Cataluña» (Official Journal of the Catalonia Autonomous Community Government) and in atleast one newspaper with a wide circulation in the area of operations of the Institution, in the period and underthe terms established in the Bylaws of ”la Caixa”. In addition, an Extraordinary General Assembly may be calledwhenever deemed fit, as provided in the Bylaws, in the same terms and conditions as those set forth for the AnnualGeneral Assembly.

”la Caixa” is a member of the Savings Banks Deposit Guarantee Fund.

2010 ”la Caixa” Annual Report

5

15173334373942424450515353566466707177788080868892939397

108113115117118118119121

123124127129131

137139157161169181

The ”la Caixa” Group in 2010

”la Caixa” Annual ReportCorporate Governance of ”la Caixa”The ”la Caixa” Group

Strategic KeysThe ”la Caixa” Group’s New Structure

2010 Financial Report of the ”la Caixa” Group1. High-quality profits in 2010

1.1. Business growth coupled with good profits and conservative write-downs1.2. Active management of margins, efficiency and high returns1.3. Welfare Projects1.4. Business segment reporting

2. Great commercial capacity: the strength of the banking business2.1. Sustained and balanced growth in banking activity2.2. Customer base: the core of the business2.3. Commercial network and human resources: cornerstones2.4. Multi-channel management: permanent relationship with customers2.5. Payment systems: a distinctive offering2.6. Innovation in customer services2.7. Quality and customer care: the groundwork for the future2.8. Supporting the business: ”la Caixa” subsidiaries

3. Investee portfolio3.1. Criteria CaixaCorp: internationalisation and diversification of revenues3.2. Active management of the ”la Caixa” Group’s investee portfolio3.3. MicroBank3.4. Venture capital and financing for entrepreneurs

4. Active risk management4.1. Comprehensive risk management at the heart of the strategy4.2. Credit risk4.3. Managing the risk of balance sheet positions4.4. Managing liquidity risk4.5. Managing operational risk4.6. Regulatory compliance risk management

5. High financial strength5.1. Excellent liquidity levels5.2. Excellent capital adequacy levels5.3. ”la Caixa” Group very good ratings

Report on ”la Caixa” Corporate ResponsibilityWith people and their projectsSustainabilityExcellence in serviceCommitment to society

Annual Report ”la Caixa” Welfare ProjectsSocial ProgrammesEducational ProgrammesScience, Research and Environment ProgrammesCultural Programmes2010 Data of ”la Caixa” Welfare Projects

CONTENTS

2010 ”la Caixa” Annual Report 4

Juan María Nin

President and CEO

Isidro Fainé

Chairman

In spite of the complex economic and financial situation, the ”la Caixa” Group has successfully completed

its 2007-2010 Strategic Plan. Our aim to lead Spain’s financial market with a differentiated management

approach, providing individuals, firms and institutions with a valuable specialised service, has helped us to

continue gaining market share, consolidate our financial strengths and reinforce our internationalisation. At

the same time we have also reaffirmed our social commitment: more than ever, Welfare Projects has been

close to people, offering opportunities to the most disadvantaged in society.

This privileged position in the sector is the consequence of applying, day after day, a culture of innovation and

teamwork; of a will to improve and a desire for excellence, based on our founding values of leadership, trust

and social commitment.

With the aim of reinforcing these values, in 2011 we have started to reorganise the ”la Caixa” Group, building

a new structure that will allow us to adapt to the new regulatory requirements and to implement the new

2011-2014 Strategic Plan which, under the slogan of “Making the difference”, reaffirms the Institution’s

mission of growth, leadership and social commitment. We are changing to preserve what is essential.

Preserving what is essential


Financial bottom line: a year of consolidating financial results and strengths,the outcomes of a year of strong commercial activity and prudent riskmanagement

In 2010 the activity of the ”la Caixa” Group was marked by the global macroeconomic environment with clearsigns of recovery shown at differing speeds among economies and also marked in Europe by concerns of thefiscal situation in Greece in early 2010, which later spread to other countries in the euro zone. Against thisbackdrop, Spain’s economy showed a slower recovery than the main European economies, marked by a seriesof structural reforms regarding fiscal austerity and the financial system passed by the government with the aimof improving the confidence of international investors. Furthermore, despite interest rates remaining low, therewere signs of high volatility and problems of liquidity in the debt markets which raised the cost of financingfor the financial institutions. Against this background, ”la Caixa” once again successfully carried out intensecommercial activity with its 10.5 million customers, strengthening its leading position with a rise in marketshare. The banking business volume managed rose to EUR 437,443 million thanks to the Group’s greatcommercial strength with 28,651 employees, 5,409 branches, 8,181 ATMs and leadership in online banking,mobile banking and payment systems.

The sustained capacity to generate recurring income and the considerable reduction in expenses led operatingincome to reach EUR 3,323 million in 2010, which, after recognition of substantial provisions, enabledthe Group to achieve an attributable recurring income of EUR 1,507 million. Following a strategy of utmostprudence, ”la Caixa” allocated in full its net extraordinary gains of EUR 634 million, to extraordinary provisionsfor risks. Additionally, and with a proactive vision, it recognized an additional provision net of taxes ofEUR 200 million for future business management. The total profit attributable to the Group amountedto EUR 1,307 million.

The contained NPL ratio of 3.71%, far lower than the 5.81% of the Spanish financial system, and the risein the high NPL coverage ratio to 70% (140% including mortgage collateral), continued to show the quality ofthe loan portfolio. Furthermore, the general credit loss allowance remained at the same amount of EUR 1,835million, as in 2009, which proves the quality of the generated income and provides a high degree of financialsoundess against a backdrop of adverse outlooks. Thus, balanced growth and the high quality of profits coupledwith conservative risk management policies consolidated high liquidity and capital adequacy levels, the mainstrengths of ”la Caixa”. As regards solvency, core capital stood at a very good ratio of 8.6%, and the excellentposition was maintained in terms of total liquidity, with EUR 19,638 million, 6.9% of the Group’s assets.

”la Caixa” successfully completed the development of its 2007-2010 Strategic Plan in a highly complicatedenvironment. It has thus strengthened its traditional leadership in this period in individual banking andcompleted the introduction of a specialised business model for Personal Banking, Private Banking, SMEBanking, Business and Corporate Banking which allowed it to continue gaining market shares and

THE ”LA CAIxA” GROUP IN 2010



strengthening its position in these market segments. As part of its international expansion plan, ”la Caixa”has three operational branches abroad and ten representative offices, providing a full range of products andservices close to its customers for their international needs. In addition, in 2010 cooperation agreementsestablished in previous years were strengthened with the strategic partners of GF Inbursa, Erste Group Bank,The Bank of East Asia and Banco BPI.

Also notably in 2010, as part of restructuring in the sector, the Extraordinary General Assemblies of ”la Caixa”and Caixa d’Estalvis de Girona (Caixa Girona) approved a merger, with ”la Caixa” acting as the absorbinginstitution and Caixa Girona as the absorbed institution. This merger became effective as of 3 November2010 once the corresponding authorisations were received. This process concluded on 1 January 2011 withthe rapid, satisfactory integration, from a technological and operative viewpoint, of Caixa Girona in theinformation systems and processes of ”la Caixa”.

On 27 January 2011, the Boards of Directors at ”la Caixa” and Criteria CaixaCorp agreed to sign a FrameworkAgreement to reorganise the ”la Caixa” Group, by virtue of which ”la Caixa”, as established by Spain’s newSavings Bank Act (LORCA in Spanish), will carry out banking business indirectly through a listed bank (currentlyCriteria CaixaCorp). This process, which should be completed by July 2011, aims to define a new structurewhich, while continuing to fulfil the social aims of ”la Caixa” and to develop the Group’s current businesses,allows it to adapt to the new domestic and international regulatory requirements, particularly the newrequirements of the Basel Committee on Banking Supervisory (Basel III).

Through this reorganising, ”la Caixa” will transfer its banking business to Criteria CaixaCorp (which willbecome a banking group named CaixaBank) in exchange for Criteria CaixaCorp transferring part of itsindustrial stakes (Abertis, Gas Natural, Fenosa, Aigües de Barcelona, Port Aventura and Mediterránea),together with newly issued shares for a total amount of EUR 2,044 million.

CaixaBank, the majority shareholder of which will be ”la Caixa”, will be set up with a leading position in theSpanish market in the financial and insurance sectors, and will also be diversified with other, complementedbusinesses, such as stakes in international banks and in the companies of Telefónica and Repsol. It will havethe best level of asset quality among the main comparable groups in the sector, given its lower NPL ratio, thebest coverage and the fact that it has no direct exposure to real estate assets. As regards capital adequacy, andconsidering an issue of necessarily convertible bonds totalling EUR 1,500 million, it will achieve pro forma corecapital of 10.9% (Basel II) in 2010, the highest level within the largest banking groups in Spain, and will boastan excellent liquidity level of EUR 19,638 million.

The new structure will also enable the new ”la Caixa” 2011-2014 Strategic Plan to be completely rolledout, which – with the slogan “Making the difference” – reaffirms the Institution’s commitment to growth,leadership and social responsibility. Therefore, consolidating the ”la Caixa” leadership in Spanish retailbanking, diversifying the business, becoming more international, maintaining its commitment to the businessfabric – also through a distinctive investee portfolio – and reaffirming its social commitment have beenestablished as strategic objectives. Furthermore, ”la Caixa” will continue to conduct an active and proactivemanagement of capital and liquidity to improve its financial strength.

High-quality profits and stronger balance sheet performance with high, conservative provisions

Despite pressure exerted on the net interest income basically due to the impact on the revaluation of theloan portfolio as part of the fall in interest rates, the ”la Caixa” Group’s great commercial capacity, withan adequate management of margins and services provided to customers in the more traditional bankingactivities, coupled with the positive trend of its investees’ income, allowed a high level of total recurringincome (gross income) to be generated in 2010, totalling EUR 6,745 million, 6.1% down on a year earlier.



The stringent cost-containing and streamlining policy with the aim of continuously improving the Institution’sefficiency explains the reduction of 4% in operating expenses which, coupled with the network’s greatcommercial capacity, enabled the efficiency ratio to reach 43.6%, while net operating income totalled EUR3,323 million, down 8.3%.

The high level of profits earned on the Group’s recurring activities enabled it to recognize increased provisions,totalling EUR 2,651 million (EUR 1,454 million to recurring profit and EUR 1,197 million to extraordinaryprofit), and to achieve a recurring net profit of EUR 1,507 million, 11.9% down, with good returns (recurringROE of 9.3%).

The extraordinary capital gains, mainly obtained by the active management of the investee portfolioand the strategic agreement reached with Global Payments to extend their payments services to retail outlets,totalled a net attributable amount of EUR 634 million and this was allocated in full to provisions to improvethe strength of the balance sheet. Furthermore, with a proactive view, an additional provision totalling EUR200 million net of taxes was made for future management of the business. Net attributable profit totalled EUR1,307 million, down 13.4%.

Great commercial capacity with growing business and market shares

The ”la Caixa” Group is committed to providing a personalized, high-quality and innovative service adaptedto the needs of our customers by means of efficient multi-channel distribution where the branch is at theheart of the relationship with customers and this is complemented by cutting-edge technological support. Thisbusiness model allows ”la Caixa” to be the leader in individual banking in Spain with a penetration of 21%,16.5% as the main institution.

The strategic objective, bolstered by the Group’s pre-eminance in individual banking, is to achieve leadingpositions in other segments such as Business Banking, Personal Banking, Private Banking or SME Banking.Therefore, commercial activity is focused on providing a personalised, tailored service that has a closerelationship with the huge 10.5 million customer base through an appropriate customer segmentation process.

2010 was marked by the Group’s major commercial effort, with its banking business volume managed– customer funds plus loans and credits – increasing to EUR 437,443 million, up 5.2%, with a loans andcredits portfolio which increased by EUR 11,520 million, to reach EUR 189,546 million, up 6.5%, with 939,463new transactions and EUR 99,491 million in loans granted. Customer funds stood at EUR 247,897 million, up4.2%, with a prudent price management approach and considerable growth in pension plans, insurance andinvestment funds.

The Group has 5,409 branches in Spain, the largest network in the Spanish financial system, and owing to itswide-reaching model, it is a source of new jobs and wealth across the whole of Spain. The Group’s workforcenumbers 28,651 employees, making ”la Caixa” one of Spain’s most important generators of employment.

As part of its international expansion, ”la Caixa” has 13 international branches, of which three are operativebranches and ten are representative offices. In 2010 ”la Caixa” opened its first representative offices in Delhi(India) and Dubai (UAE). The other representative offices are in London (United Kingdom), Paris (France), Milan(Italy), Stuttgart and Frankfurt (Germany), Istanbul (Turkey), Beijing and Shanghai (China) and the operativebranches are found in Warsaw (Poland), Bucharest (Romania) and Casablanca (Morocco), where it was the firstSpanish institution to open a branch. ”la Caixa” aims to open new branches in Algiers (Algeria), Cairo (Egypt)and Singapore (Singapore) in 2011. It also extended its foreign trade business, increasing its share of exportand import documentary credits to 14.2% and 13.0%, respectively.



One of the ”la Caixa” Group’s distinguishing features is its leadership in multi-channel management,evidenced by its 8,181 self-service terminals and massive use of the Linea Abierta internet channel(www.laCaixa.es), with 6.6 million contract customers, 3.3 million of which are operational users. In 2010,”la Caixa” maintained its leadership in online banking services in Spain, where the market share stands at31.4% and strong innovation in contents and ease of access to the internet channel. The 1.8 million customermark was exceeded in the Caixa Movil service, which positions ”la Caixa” as the leader in mobile-basedfinancial services with a market share of 46.0%. The extensive multi-channel support is also the basis for thecommercial efficiency of our branches, which make personalised customer care a priority.

The differentiated offering in payment systems positions ”la Caixa” as the top card issuer in the Spanishmarket, with 10.3 million cards in circulation and a market share of 17.7%. In terms of point of sale (POS)terminals, ”la Caixa” is the market leader with a network of 169,966 units and a 21.2% share of retail outletturnover. To consolidate this market advantage, in 2010 ”la Caixa” continued to launch new innovative serviceofferings for businesses and retail stores, and an agreement was reached with the American company GlobalPayments, the international leader in payment processing, to develop payment services through POS terminalsfor our customers.

Despite the difficult economic climate marked by practically no growth in loans or deposits, ”la Caixa”maintained and even increased its market share. In 2010 the ”la Caixa” Group achieved market shares of10.6% in loans and 10.0% in deposits, and notable rises in market shares for investment funds (10.6%),pension plans (16.2%) and savings insurance (14.8%). There was a notable increase in the market share forpayroll deposits of 15.7% with over two million payrolls managed. As regards pensioner customers, the figureof over one million customers was reached with a market share of 13.6% in pension deposits. This was onlypossible thanks to the intense commercial activity through our extensive network of branches, efficient multi-channel management and appropriate customer segmentation, and allowed the ”la Caixa” Group to reinforceits leading position in the Spanish banking sector.

Excellence in service, which is the cornerstone of ”la Caixa” when retaining our customers’ confidence in us,is endorsed by the fact that, according to the Bank of Spain, ”la Caixa” is the institution which has had thefewest complaints made about its financial activity. Other independent surveys have also rated ”la Caixa” onceagain as one of the best in the banking industry in terms of quality.

Criteria CaixaCorp: a vehicle for international expansion and investment in special-interestindustries and future CaixaBank

Criteria CaixaCorp is the subsidiary encompassing practically all of the ”la Caixa” Group’s investee portfolioand is responsible for implementing the Group’s investing strategy and international expansion, with aportfolio made up of equity interests in leading companies in the utility, international banking, insurance andspecialised financial services industries which complement the products and services of ”la Caixa”. 2010 sawthe continuation of the strategy aimed at rebalancing the investee portfolio. In this respect the level of stakesin the financial sector reached 37% of the total value of Criteria CaixaCorp’s portfolio at the end of 2010,close to the minimum objective set at the time of the flotation of Criteria CaixaCorp in 2007, having morethan doubled its weight since that date, a process that will conclude when the ”la Caixa” banking business isincorporated into Criteria CaixaCorp (future CaixaBank) as part of the Group’s ongoing reorganisation.

Criteria CaixaCorp holds the following ownership interests in international financial institutions: 20% of GFInbursa, 10.1 % of Erste Group Bank, 15.2% of The Bank of East Asia (after the increase in its interest throughthe EUR 331 million subscription to a capital increase in January 2010), 30.1% of Banco BPI and 20.8%of Boursorama. Also, in the context of the internationalisation process, ”la Caixa” and Criteria CaixaCorpreinforced in 2010 their strategic investment and cooperation agreements with their investees: The Bank ofEast Asia, Erste Group Bank, GF Inbursa and Banco BPI.



In addition, in June 2010 Criteria CaixaCorp acquired 99.8% of the share capital of Adeslas through a dealworth a total of EUR 1,193 million. As a result, Adeslas became part of the structure of VidaCaixa Group(formerly SegurCaixa Holding) giving rise to the VidaCaixa Adeslas insurance company, a non-life insurancecompany which has resulted from the merger of SegurCaixa and Adeslas, the leading health insurancecompany in Spain. Of particular note was the strategic agreement reached in January 2011 by ”la Caixa”and Mutua Madrileña through which Mutua Madrileña will acquire 50% of the non-life insurance business fora total of EUR 1,075 million.

Furthermore, as part of the transaction to acquire Adeslas, 24.5% of Agbar was sold to Suez Environnement,while maintaining a stake of 24.0% of the capital. Furthermore, in December 2010 an agreement was reachedto formalise the sale of the vehicle leasing business to Arval (BNP Paribas Group).

The market value at 31 December 2010 of the listed investee portfolio of the ”la Caixa” Group amounted toEUR 18,685 million, with unrealised gains of EUR 2,709 million. Of particular note in 2010 was the 20.85%rise in the market value of Criteria CaixaCorp, whereas the IBEX 35 fell by 17.43%.

Stringent risk management intensified

”la Caixa” continued to apply its proactive, conservative global management policy with regard to the risksinherent to the business. Particularly, risk management and control structures were reinforced in 2010, byapplying new loan granting policies based on customers’ creditworthiness.

In the area of credit risk, the ”la Caixa” Group’s lending activity was geared towards meeting the financialneeds of households and businesses, and, accordingly, its lending activity was diversified and fragmented, asevidenced by the fact that 51% of the loan portfolio was in the hands of individuals. The lending portfoliowas also strongly collateralised since 66% is secured by mortgages and 89% of the porfolio had an averageloan to value ratio of below 80%. Following the application at 2010 year-end, of principals of utmostprudence, the NPL ratio stood at 3.71% and the NPL coverage ratio rose to 70% (140% including mortgagecollateral). The ”la Caixa” Group’s credit risk thus remains contained and ranks among the lowest of theSpanish financial system thanks to diversification, the value of collateral and a prudent risk coverage policy.In this regard, it is of particular note that the credit loss allowance of EUR 1,835 million remained the sameas in December 2009, and this, combined with the other financial strengths of ”la Caixa”, places theInstitution in an extremely sound position to face new challenges.

Consolidation of financial strengths: liquidity and capital adequacy

Balanced growth, the capacity to generate quality earnings in 2010, stringent risk management and prudentrecognition of provisions consolidated the Group’s financial strengths with high levels of liquidity and capitaladequacy, despite the economic crisis.

Conservative and proactive management of liquidity and the diversification of the sources of financing havealways constituted a distinguishing feature of ”la Caixa”, and allows the Institution to adapt to the growthof the business and meet the credit needs of customers. In this regard, the liquidity position at 31 December2010 was excellent, at EUR 19,638 million, 6.9% of the Group’s total assets, substantially all of which weretotally liquid. Furthermore, the level of dependency on the wholesale markets is very low, with a very goodstructure of maturities, which provide it with strong stability in a climate of liquidity problems, and reflects theGroup’s great proactive measures. Of particular note was that investors trusted the capital adequacy of”la Caixa” which, despite the complex market situation, managed to issue bonds totalling EUR 5,600 millionin the institutional market, compared to issues maturing in 2010 totalling EUR 2,810 million.



The ”la Caixa” Group maintained a high level of core capital of 8.6%, which reflects the Group’s excellentcapital adequacy level. Additionally, Tier 1 stood at 9.9% and the BIS II Solvency Ratio at 11.8%. The Group’seligible capital for meeting solvency requirements increased to EUR 19,198 million, with a surplus over theminimum regulatory capital requirement of EUR 6,130 million, EUR 1,463 million more than at 2009 year-end.

Sustainable bottom line: our values, our long-standing commitment

Leadership, trust and commitment to society are the values on which the action of ”la Caixa” is based andwhich drive our commitment to people and their projects, and to the progress of society.

We have a commitment to financial inclusion and social integration through Microbank, the social bank of”la Caixa”, leader in the granting of micro-loans to small businesses, entrepreneurs and to people orcollectives that have difficulty gaining access to the traditional financial system.

We have a commitment to sustainable investment and financing, taking part in projects for viable economic,social and environmental investment and publicly committing ourselves not to finance the production orexportation of weapons.

We have a commitment to entrepreneurs and their projects through the EmprendedorXXI initiative and topeople and families with mortgages who temporarily have to face a reduction in income.

We have a commitment to innovation, being pioneers in the development of new technological solutions tocreate new products and services and make them more easily accessible.

And, lastly, we have a commitment to society, through our contribution to the improvement in people’s livingconditions, facilitating their integration into society and their development, through the ”la Caixa” WelfareProjects.

Social bottom line: thinking of people, more than ever before

For more than 100 years, one of the differential features that has best defined ”la Caixa” is its commitmentto people. Through its Welfare Projects, ”la Caixa” gives back to society a considerable part of the profitsgenerated by its financial activity.

”la Caixa” guides its social actions in accordance with two principles: looking forward, focusing on fulfillingneeds that have not been covered by other institutions; and flexibility, aimed at providing responses to the newdemands that arise out of the rapid changes in society.

In the current economic situation, the importance of fostering social, educational, cultural and environmentalprogrammes to help to relieve people’s problems takes on even greater relevance. In this respect, for 2010”la Caixa” approved a budget for its Welfare Projects of EUR 500 million. This sum positions ”la Caixa” as theleading private foundation in Spain in budget size and as one of the largest in the world.

The development of social programmes is at this time the basic priority for ”la Caixa”. Overcoming childpoverty, promoting employment for those members of society with difficulties, care of people in the advancedstages of illnesses, promoting active and healthy aging for the elderly and struggling against exclusion wereour priority lines of action. Together with these, ”la Caixa” has fostered educational and research programmes,projects aimed at conservation and the environment, the dissemination of science and initiatives to bringculture closer to people of all ages and levels of education.



The EUR 463 million invested during 2010 were allocated as follows to the different areas of action: EUR 326million to carrying out social programmes; EUR 59 million to promoting environmental and scientific initiatives;EUR 50 million to encouraging cultural schemes and EUR 28 million to supporting educational and researchprojects.

Responding to social needs

The development of social programmes that are suitable for the emerging needs of this current era is takingup the main part of the efforts of ”la Caixa”. More than ever, it wants to help to alleviate problems and createopportunities in times of difficulty.

Overcoming child poverty, promoting employment among social groups with difficulties and fightingagainst exclusion takes on more importance than ever before. Through the programme CaixaProinfancia,we contribute to helping break the spiral of poverty in which many minors in Spain are trapped as a resultof precarious family situations, which in turn give rise to a lack of educational opportunities, a deficient dietor unhealthy conditions. In 2010, more than 62,000 children who live in situations of social exclusion havereceived help through a programme which strives for everyone to have an open door to a better future, afuture in which they can enjoy the same opportunities as the rest. ”la Caixa” has already invested EUR 137million in the project since it was set up in 2007.

People with difficulties in finding a job are also trapped in this circle of exclusion. Aware that unemploymentnot only affects the unemployed but also has a bearing on society as a whole, the ”la Caixa” Welfare Projectshas launched the Incorpora programme. More than 13,600 companies have already joined us in the endeavourto provide decent employment for the most vulnerable groups. The joint efforts of the Welfare Projects, socialinstitutions, the 369 experts in work placement that form part of the programme, the network of ”la Caixa”branches from which opportunities to contract these people are detected and the companies supporting thescheme have led to 32,740 people getting jobs thanks to the programme, 11,596 of these in 2010.

In the area of new programmes, we have recently set up a project aimed at establishing a model for civilcoexistence in 17 locations around Spain which are characterised by their high degree of diversity. Through theprogramme for Intercultural Community Participation, the ”la Caixa” Foundation favours social cohesion andintegration and preparing society to face the problems particular to communities with a broad spectrum ofdiversity.

With the elderly since the origins of the Institution

Another major challenge to be faced by society is ageing. Older people are one of society’s main assets.Ensuring both their well-being and their participation and full integration in society has been part of”la Caixa”’s commitment to society for more than 100 years. The programme for the elderly is, therefore,our most long-standing project. With it, we hope to contribute to healthy aging, in that, just as our oldergenerations add years to their lives, they can also add life to each of their years. And they bring this life tosociety as a whole, which needs them.

Innovation has always played a significant role in Welfare Projects. Linked with aging, ”la Caixa” was the firstprivate institution to focus on bringing new technologies to older people, but it has also focused on awardinggrants to Spanish university students, on professional training of inmates in correctional facilities or onpromoting affordable rental housing for the young and elderly.



True to this spirit, Welfare Projects consolidated the programme of integrated care for the terminally ill andtheir families. With this programme, we intend to help people who are in the last stage of their life. Ourdesire is to alleviate their suffering, contribute to making them feel properly cared for in their final days andguarantee that they and their families receive the appropriate emotional, spiritual and social care. In 2010,nearly 8,400 patients and 13,900 family members benefited from this programme.

In addition to the above lines of action, the ”la Caixa” Welfare Projects launched other projects aimed atcovering various deficiencies in society. The raising of awareness about drug consumption and its prevention orthe promotion of voluntary work were just a couple of these.

To all these programmes we should add the more than 1,000 projects launched by associations throughoutSpain which have been supported by Welfare Projects in 2010 through a call for applications for aid in socialinitiatives. All these projects were aimed at meeting the needs of society’s most disadvantaged groups,adapted to the characteristics and deficiencies of each territory in particular.

The ”la Caixa” Welfare Projects also act beyond the borders of Spain. Through our International Cooperationprogramme, we contribute to the eradication of extreme poverty in the most disadvantaged countries,through supporting 52 initiatives aimed at improving living conditions and promoting sustainable developmentof the countries most in need. In these countries, the lack of resources and diseases are very closely related andkeeping healthy is a fundamental aspect of the fight against poverty. Aware of this, the ”la Caixa” WelfareProjects leads a vaccination programme targeting boys and girls under five, which has already immunised morethan a million of them.

A commitment to science and the advancement of knowledge

The advancement of knowledge is possibly one of the best ways to bring about improvements in socialwelfare. True to this idea, we supported the education of all kinds of groups. 217 university students havebroadened their studies in 2010 in the most prestigious universities in Spain and abroad thanks to a grant from”la Caixa”. To them we must add , among others, the 40 beneficiaries of the program for “Aid to BiomedicalResearch” in Spanish scientific centers of research (National Cancer Research Centre, National Centre forBiomedicine, Institute of Biomedical Research and Centre for Genomic Regulation).

Support for research also received a considerable boost from Welfare Projects in 2010. The opening of the”la Caixa” Unit for Molecular Cancer Therapy, directed by Dr. Josep Baselga, and the birth of the Institute forGlobal Health in Barcelona ratify the commitment of ”la Caixa” in this direction. These programmes were inaddition to our support of the National Centre for Cardiovascular Research, the Wider Centre for EndoscopicSurgery in Barcelona, the AIDS reseach laboratory, IrsiCaixa, or the RecerCaixa project, which is geared towardsencouraging university research.

The environment has also recently become a primary issue within the fields of action of Welfare Projects. TheConservation of Natural Spaces and Social Rehabilitation programme contributes to the conservation of the mostvaluable ecosystems in Spain, through many different projects to preserve the environment. This programme,which has been developed in collaboration with the environment departments of the various autonomouscommunities and local administrations involved, also prioritises hiring the disadvantaged. In this regard, the2,351 environmental projects launched since the programme began have also led to the rehabilitation of6,081 people at risk of social exclusion.

The scientific commitment of Welfare Projects is completed with ”la Caixa” programme supporting the sea,the huge informative and awareness-raising task undertaken both by the CosmoCaixa science museums inMadrid and Barcelona and by the travelling exhibitions on the environment supported by ”la Caixa” which



each year visit Spanish cities, towns and villages. Among the topics that we have covered in 2010 are theorigin of language, the evolution of mankind and the use of energy.

Culture as a tool for social integration

Culture is a powerful tool for people’s growth. Based on this principle, Welfare Projects is committed to thedissemination of culture in all of its various forms to an audience comprising all age groups and educationallevels.

The CaixaForum social and cultural centres spread knowledge about major civilisations in the past,contemporary creation, music, literature and humanities. The CaixaForum model has consolidated its identityas the 21st century reference model. It comprises meeting points, open spaces and platforms for knowledge,and tradition and vanguard go hand in hand in the proposed programmes. The existing centres in Barcelona,Madrid, Tarragona, Lleida and Palma will soon be joined by the new centre in Girona. Also, in 2010 theCaixaForum centres in Zaragoza and Seville took the first steps towards their inauguration, which is scheduledfor 2011 and 2015, respectively.

In a similar manner to the science and environmental programmes, the proposals made by the proprietarycentres are complemented by cultural exhibitions offered by Welfare Projects, which travel throughout Spain.The career of Miquel Barcelo, the relationship between Federico García Lorca and Salvador Dalí, the legacy ofToulouse-Lautrec or the paintings of Matisse have been the subjects of some of these.

Continuing our policy of joining our efforts with those of others, one of the new cultural developmentsundertaken recently by Welfare Projects was the signing of agreements with important cultural institutions.In 2010, the union of the collection of contemporary art of the ”la Caixa” Foundation and of the MACBAmaterialised in one of the most valuable joint collections in the genre. This project joins the agreements signedwith the Prado Museum in Madrid and the Louvre Museum in Paris.

Talks on current affairs, poetry, cinema and music, through such emblematic ideas such as the Messiahconcerts inviting participation by all or the project known as “Diversons. Música para la integración” havecompleted a cultural programme that has proved highly popular with the public.

”la Caixa” Annual Report

Corporate Governance of ”la Caixa”

The ”la Caixa” GroupStrategic keysThe ”la Caixa” Group’s New Structure

2010 Financial Report of the ”la Caixa” Group1. High-quality profits in 20102. Great commercial capacity: the strength

of the banking business3. Investee portfolio4. Active risk management5. High financial strength


Governing BodiesGeneral AssemblyBoard of DirectorsControl Committee

Management



• To deal with any other matter submitted to it for considerationby the bodies empowered to do so.

The members of the General Assembly oversee that theinterests of deposit holders and customers are safeguarded,that the Institution’s community-oriented aims in its area ofinfluence are fulfilled and that the integrity of its assets ispreserved, while setting the regulations guiding the Institution’sactivities.

The stakeholder groups making up the General Assembly arerepresented in it. The Catalan savings banks law divides thesestakeholder groups into four sectors:

a) The deposit holders;b) The founder entities and other community-interest entities;c) Local government corporations;d) The Institution’s employees;

GOvERNING BODIES

Caja de Ahorros y Pensiones de Barcelona, ”la Caixa”, is a financialinstitution governed by Legislative Decree 1/2008, of 11 March,approving the Consolidated Catalan Savings Banks Law, and isregistered in the special register of savings banks of the CataloniaAutonomous Community Government. As a savings bank it is anon-profit foundational financial institution serving the community,it does not depend on any other company and it engages inattracting, administering and investing the savings entrusted to it.

According to the powers established in the law and its Bylaws,”la Caixa” is governed, ruled, run, represented and controlledby the General Assembly, the Board of Directors and theControl Committee. In addition the President and CEO, theInvestment Committee, the Remuneration and AppointmentsCommittee and the Welfare Projects Committee are consideredbodies of ”la Caixa”.

General Assembly

The General Assembly is the highest governing and decision-making body of ”la Caixa”. In addition to its general governingpowers, the following duties also fall especially and exclusivelywithin its powers:

• To appoint the Board of Directors and members of theControl Committee.

• To decide upon the reasons for the removal and revocationof the powers of the members of the governing bodiesbefore the end of their term of office.

• To approve and amend the Bylaws and regulations governingthe system for electing the members of the governing bodies.

• To resolve upon the change of registered office.• To resolve upon transforming the Institution into a special

foundation, how this will be managed as a credit Institution,the alteration of the Institution’s legal form, or its merger withother institutions, or make any decision affecting its nature, andresolve upon dissolution and liquidation.

• To define the general guidelines for the Institution’s annualaction plan.

• To approve management of affairs by the Board of Directors,the notes to the financial statements, annual balance sheetand income statement, and the allocation of profit to theaims of ”la Caixa”.

• To approve management of Welfare Projects, and the relatedannual budgets and expenditure.

• To confirm the appointment of the President and CEO of theInstitution.

• To designate, at the proposal of the Board of Directors, thecommunity-interest entities that are able to appoint membersof the General Assembly.

COMPOSITION OF THE GENERAL ASSEMBLY (1)

Deposit holders

Local governmentcorporations

Founder and community-interest entities

Employees

Total 160

20 (13%)

48 (30%)

34 (21%)58 (36%)

“THE GENERAL ASSEMBLY IS THE HIGHEST GOvERNINGAND DECISION-MAKING BODY IN ”LA CAIxA””

(1) So as to adapt to the changes introduced by the Legislative Decree 1/2008, 11 March,through Decree Law 5/2010, 3 August, the Institution’s General Extraordinary Assemblyheld on 29 November 2010 agreed to change the Bylaws by amending the compositionof the Assembly setting the number of Board Members at sixty-four for the sector ofdeposit holders, forty-five from the sector of founder and community-interest entities andthirty-one from the sector of local corporations. This change shall come into force whenthe process of renewing the governing bodies commences –and those elected–, whichhas to be carried out at the General Ordinary Assembly in 2012, by which the renewalprocess will be conducted pursuant to the composition of the assembly which was theresult of the change agreed at the General Extraordinary Assembly held on 29 November2010, following with the previous composition of the assembly until the aforementionedGeneral Ordinary Assembly is held in 2012.



The Welfare Projects Committee, the Executive Committee, theInvestment Committee and the Remuneration and AppointmentsCommittee are delegate committees of the Board of Directors.

Welfare Projects Committee

The role of the Welfare Projects Committee is to submit forapproval by the Board of Directors all new welfare projectsfor which support has been sought from ”la Caixa”, and thebudgets for existing projects, and to manage and run theprojects, guided by economic rationality concerns and the aimto serve, to the fullest extent possible, the general interests ofthe territory where they are carried out.

The members of the Welfare Projects Committee are theChairman of the Board of Directors and eight people elected bythe Board of Directors from among its members, in proportionto the sectors represented on the Board. Committee meetingsare also attended by the President and CEO of ”la Caixa” andthe Executive Vice-President in charge of Welfare Projects.

Executive Committee

The Executive Committee is the permanent delegate bodyof the Board of Directors. Its powers are all those delegatedby the Board of Directors and those attributed to it under the

“THE BOARD OF DIRECTORS AGREES ON THE ACTIONSTO ACHIEvE THE AIMS AND OBJECTIvES OF ”LA CAIxA””

COMPOSITION OF THE BOARD OF DIRECTORS

Total 21

3

6

48

Deposit holders


Founder and community-interest entities

Employees

General Assembly Meetings may be either annual orextraordinary. Annual Assembly Meetings are held once a yearwithin the first six months of the calendar year to approve,where applicable, the notes to the financial statements, thebalance sheet, the income statement, the proposed allocation ofsurpluses and the proposed transfer to the Welfare Projects, andto reappoint, where required, positions on the Board of Directorsand the Control Committee, and to discuss and make decisionsin relation to the other matters and proposals on the agenda.Extraordinary Assembly Meetings are held as and when they arecalled, and may only deal with the purpose for the meeting.

Board of Directors

Pursuant to the law, the Board of Directors is the body appointedby the General Assembly to govern, manage run and representthe savings bank and may be made up of a minimum of 10 anda maximum of 21 members. Its composition must reflect thecomposition of the General Assembly.

The Board of Caja de Ahorros y Pensiones de Barcelona is madeup of 21 members. As the largest savings bank in Spain, it isreasonable for it to have chosen to appoint the maximum numberof Board members (and General Assembly members) to ensurethat its governing bodies are as representative as possible, bothin terms of the four stakeholder groups represented and from ageographical standpoint, in view of the areas where the Institutioncarries on its activities and the close ties that savings banks havein the territories where they operate. This relationship is especiallyclear in the way in which its Welfare Projects are distributed.

The Board of Directors is made up of:

• Eight directors representing deposit holders, of which six must beelected from among the General Assembly members representingthis sector, and two may be elected from among non membersmeeting the appropriate professional conduct requirements.

• Six directors representing the founder entities or community-interest entities, elected from among the General Assemblymembers representing this sector.

• Four directors representing local government corporations,of which two must be elected from among the GeneralAssembly members representing this sector and two may beelected from among non members meeting the appropriateprofessional conduct requirements.

• Three directors representing employees, elected from amongthe General Assembly members representing this sector.

Board meetings are also attended by the President and CEO of”la Caixa”, who has the right to speak and vote by law.



Bylaws, mainly in relation to activities concerning management,disposal, taxation and ownership, as well as the exercise of theadministrative, court and out-of-court actions to which the”la Caixa” is entitled.

The following Board members sit on the Executive Committee:the Chairman, the Deputy Chairmen and four members, one fromeach of the sectors represented at the General Assembly. Meetingsare also attended by the President and CEO of ”la Caixa”.

Investment Committee

The role of the Investment Committee is to inform the Boardof Directors or the Executive Committee of the investments ordivestments which, in accordance with current legislation, are of astrategic and stable nature. It also informs on the financial viabilityof these investments and how they fit in with the Institution’sbudgets and strategic plans. Current legislation defines“strategic” as the purchase or sale of a significant investmentin a listed company or participation in business projects witha presence on managing or governing bodies implying a totalinvestment by ”la Caixa” of over 3% of its eligible capital.

The Investment Committee consists of the Chairman of theBoard of Directors and two directors, chosen according to theirspecialist skills and professional experience. Meetings are alsoattended by the President and CEO of ”la Caixa”.

Remuneration and Appointments Committee

The role of the Remuneration Committee is (i) to inform of thegeneral remuneration and incentive policy for the members of theBoard of Directors, of the Control Committee and managementpersonnel; (ii) to guarantee compliance of legal requirementsto exercise the post of members on the Board of Directorsand Control Committee and also those necessary for the postof President and CEO and (iii) to receive reports on conflicts ofinterest which must be prepared by the governing bodies inaccordance with the Bylaws.

The Remuneration and Appointments Committee consists of theChairman of the Board of Directors and two directors. Meetingsare also attended by the President and CEO of ”la Caixa”.

Control Committee

The role of the Control Committee is to act as an independentsupervisory body of the Board of Directors which is not

subordinate to the latter. Its supervisory role not onlyencompasses financial issues but it also plays a significant partin the Institution’s election processes and can even recommendto the Department of Economy and Finance of the CataloniaAutonomous Community Government that any Board resolutionsit considers to contravene current legislation be suspended.

Its composition must reflect the proportional representationof the various stakeholder groups in the General Assembly.Moreover, there may be no duplication of representatives sothat no institution may have representatives on both the Boardof Directors and the Control Committee at the same time.

To carry out these duties the Control Committee has thefollowing powers:

• To supervise management of affairs by the Board ofDirectors, while overseeing that their decisions are consistentwith the guidelines and resolutions of the General Assemblyand with the aims of the Institution.

• To monitor the functioning of and the tasks carried out bythe Institution’s supervisory bodies.

• To examine the external auditors’ reports and be familiar withthe recommendations made by the auditors.

• To review the balance sheet and income statement for eachyear and make such observations as it sees fit.

• To report on its activities to the General Assembly at leastonce a year.

• To request that the Chairman call an extraordinary GeneralAssembly Meeting whenever it sees fit.

• To supervise elections for members of the General Assemblyand Board of Directors, jointly with the Department ofEconomy and Finance. Also, the Control Committee will oftensupervise elections for new Control Committee members.

• To examine the reports of the delegate Welfare ProjectsCommittee and issue its opinion thereon.

• To propose to the Department of Economy and Finance tosuspend the Board of Directors’ resolutions if they contravenecurrent legislation.

• All of the duties conferred upon the Audit Committee byvirtue of additional provision eighteen of Securities MarketLaw 24/1988, of 28 July, with regard to the powers notconferred with the aforementioned functions, in particular:

a) To inform the General Assembly of issues arising intheir committee meetings in relation to matters of theircompetence.

b) To propose the appointment of external financial auditorsto the Board of Directors for submission to the GeneralAssembly.

c) To supervise the effectiveness of internal audit servicesand the risk management systems and to discuss with the



external auditors any significant weaknesses detected in theinternal control system when conducting the audits.

d) To supervise the financial information process andpresentation of regulated financial information.

e) To contact the external auditors to receive informationon any issues that could jeopardise their independence,including issues related to the audit process and any othercommunications envisaged in current legislation and mustreceive from auditors annually written confirmation of theirindependence together with any information of additionalservices rendered to la Caja de Ahorros y Pensionesde Barcelona or to organisations directly or indirectlylinked to it.

f) To issue an annual report which expresses an opinion on theindependence of the auditors prior to issuing the auditors’report on the accounts.

• Any other powers conferred upon it by the General Assemblywithin the guidelines set in the above paragraphs.

The Control Committee has nine members elected by theGeneral Assembly from among its non-director members, inthe following proportions:

• Three members from the deposit holders sector.• Three members from the founder and community-interest

entities sector.• Two members of the local government corporations sector.• One member from the employees sector.

President and CEO

In addition to the above bodies, also worthy of mentionis the office of the President and CEO of ”la Caixa” as theexecutive who is responsible under the law for implementingthe resolutions of the Board and carrying out the other dutiesentrusted to him in the Institution’s Bylaws or regulations. Thepost of President and CEO is especially important as, in additionto being appointed by the Board, the office must be confirmedby the General Assembly, as must the removal from the role.Moreover, under Catalan law the President and CEO sits on theBoard of Directors in a speaking and voting capacity.

Therefore, there is a separation between the various bodies withdifferent functions which acts as a means of control and providesa balance, in line with good corporate governance practices. Eachof the governing bodies contains a suitable proportion of thevarious sectors, thereby maintaining the same balance.

Regime applicable to members of theGoverning Bodies

With respect to the characteristics of Board members, it shouldbe noted that the qualifications on use in codes of governancedo not apply to savings banks since, due to their foundationalnature, they may not have proprietary directors. All of themembers belong to or represent a specific stakeholder group,although the deposit holders and local government corporationssectors may appoint up to two members of the Board ofDirectors for each of these sectors from among persons whoare not members of the General Assembly but meet therequirements concerning professional conduct, without thisresulting in the removal from the Board of representatives ofthose groups who are also General Assembly members.

Under applicable legislation, the following persons shall bedisqualified from holding office in the General Assembly andon the Board of Directors and Control Committee:

COMPOSITION OF THE CONTROL COMMITTEE (2)

Total 9

1

3

23

Deposit holders


Founder amd community-interest entities

Employees

“THE CONTROL COMMITTEE OvERSEES THE CORRECTMANAGEMENT OF THE BOARD OF DIRECTORS”

(2) So as to adapt the composition of the Control Committee to the percentages of thecomposition of the Assembly scheduled for renewal in 2012, the General ExtraordinaryAssembly held on 29 November 2010 agreed to change the Bylaws, thus the ControlCommittee will be made up of four members from the deposit holders sector, two membersfrom the founder entities or community-interest entities, two members from the sector oflocal corporations and one from the employees sector.



a) Undischarged bankrupt traders or non-traders, as well aspersons subject to judgments that disqualify them fromholding public office.

b) Those who breached their obligations to ”la Caixa”, prior toor during their appointment to office.

c) Board members and members of the governing bodies ofmore than three business corporations, CEOs, board members,executives, advisors and employees of other credit institutionsor companies dependent thereon, or of Caja de Ahorros yPensiones de Barcelona itself, except where they hold suchpositions in the interests of Caja de Ahorros y Pensionesde Barcelona, and of corporations or entities that promote,support or guarantee credit institutions or establishments.This includes the holders of posts in any commercial company,except:• Where the post is held, in their own name or otherwise, on

the direct or indirect recommendation of Caja de Ahorros yPensiones de Barcelona and is exercised in its interests.

• Where the post is held solely for the purposes of carryingout the holder’s commercial or professional activities.

• Where the post is held in a company which does not carryon independent commercial activity on a regular basis andwhich belongs to a family group of which the post holder,his/her spouse, ascendants or descendants form a part.

• Where the post is in a company belonging to othercompanies included in the calculation in accordance withthe above rules.Notwithstanding the above rules for calculating thenumber of members of the Board of Directors, under nocircumstances may members of the Board of Directors siton the Board of more than eight commercial or cooperativecompanies, whether or not they are included in the limitestablished in the rules.

d) Public servants with duties directly related to the activitiesof savings banks.

e) The Chairman of the founder institution or corporation.f) Those who have held the offices of Board Member or

President and CEO for more than 20 years in the same savingsbank or in an another which has been absorbedor merged.

g)Those persons who hold an elected political post.h) Those persons holding a high position in the State’s General

Administration, the Administration of the AutonomousCommunities or Local Administration, and also in institutionsbelonging to the public sector, administrative or private lawwhich have links with or depend on these.

This incompatibility shall cover the period of two years afterthe holders of high positions have left office when either of thetwo following cases arises:

• When those holding high positions or their superiorsproposed by them or those in charge of dependentinstitutions, by delegation or substitution, have passedresolutions related to savings banks.

• When they have participated in meetings held with regulatedinstitutions in which an agreement or resolution has beenpassed related to the savings banks.

The term of office of the members of the General Assembly, theBoard of Directors and the Control Committee is six years, and theymay be reappointed for a second term if they meet the conditionsfor appointment, up to a maximum term of 12 continuous oruninterrupted years. The calculation of this limit does not includeany time when the office may have been discharged throughdelegation, since the term must be calculated entirely in relation tothe original office-holder. Eight years after expiry of the previousterm, the calculation of the 12-year limit starts again.

In addition, members of the General Assembly, of the Board ofDirectors and the Control Committee may not be linked to”la Caixa” or to companies in which ”la Caixa” has aninvestment of more than 25% due to contracts for projectwork, services, supplies or paid work during the period inwhich they hold such office and in the two years followingtheir removal, except in the case of an employment relationshipwhen they are members representing the employees.

Moreover, the grant of loans, guarantees and sureties tomembers of the Board of Directors or the Control Committee,or to the President and CEO or to their spouses, ascendants,descendants and second-degree relatives, as well as tocompanies in which such persons hold an ownership interestwhich, individually or jointly, is a majority interest, or in whichthey hold executive office, must be approved by the Boardof Directors or by the Executive Committee (as authorised bythe Board and reporting to it) and expressly authorised bythe Department of Economy and Finance of the CataloniaAutonomous Community Government.

This regime is also applicable to transactions performed bythe above individuals or legal entities for the purposes oftransferring the assets, rights or securities they own, or thatwere issued by them, to the Institution. Transactions performedby individuals not exceeding a total of EUR 140,791 and by legalentities not exceeding EUR 351,990 are generally approved.However, transactions with legal entities in which the executiveacts on behalf of the Institution and has no personal or familyfinancial interest, either directly or through a nominee, do notrequire authorisation.



From another standpoint, since the Institution issues securities,Caja de Ahorros y Pensiones de Barcelona is subject to theInternal Rules of Conduct of the Securities Market, approvedby the Spanish Federation of Savings Banks, to which itadhered by a resolution of the Board of Directors dated 19July 2007, amended by a subsequent resolution dated 18September 2008, in accordance with a change to the InternalRules. These Rules regulate various issues such as the generalrules, transactions carried out by parties subject to the Ruleson their own behalf, the prevention of abuse of the market,the conflicts of interest management policy, the depositaryarrangements for collective investment schemes and pensionfunds and the application of the Rules. Therefore, the Ruleshave been adapted to the latest changes with respect tothis subject matter, introduced by the Securities Market Lawand implementing regulations, which, in turn, has beenimplemented and completed by a Circular approved by theBoard of Directors on 23 October 2008, which relates tospecific areas such as the control and compliance structure,the scope of application and transactions carried out byparties subject to the Rules on their own behalf, separateareas and information barriers, abuse of the market, suspicioustransactions reporting and conflicts of interest policy.

Other Corporate Governance measures

Having set forth above the legal regime applicable to thegoverning bodies of Caja de Ahorros y Pensiones de Barcelona,there follows a description of certain measures adopted by theInstitution concerning Corporate Governance:

1) To counter one of the accusations traditionally made againstsavings banks that they are subject to excessive politicalinfluence, Caja de Ahorros y Pensiones de Barcelona chose asystem for the election of members of the General Assemblyto represent deposit holders based on delegates drawn by lotsand elected by the General Assembly members from among thedelegates in each electoral district, since a direct electoral systemcould distort representation of these interests as there arevery few organisations of the same size as ”la Caixa”, besidesthe political parties, to organise candidatures and a genuineelectoral campaign throughout the territory where they operate.The aim of using a system of delegates who are elected in eachelectoral district is to prevent the election of deposit holders’representatives from being affected by politics and to preventpolitics from having an excessive influence on ”la Caixa”.

2) With regard to the duties attributed by the SpanishCompanies Law to the Audit Committee (which is a bodyappointed by the Board of Directors), in accordance with the

Bylaws of Caja de Ahorros y Pensiones de Barcelona, theInstitution has opted to have such duties discharged by theControl Committee, since it is an independent body fromthe Board of Directors and this system enables thoroughcompliance with good governance guidelines.

3) The Institution has chosen to establish the maximum age for itsBoard members as well as Control Committee members at 78,although the member in question may continue to dischargeoffice until the first Annual General Assembly following his 78thbirthday. In addition, in order to avoid short-term appointments,members must be under 75 years of age when elected.

4) The Bylaws of Caja de Ahorros y Pensiones de Barcelona alsostipulate that persons belonging to the Board of Directors orControl Committee of another savings bank, financial, creditinstitution or those members of the Board of Directors in aninsurance institution are disqualified from taking a seat onthe Institution’s Board of Directors unless they hold a post ofinterest for “la Caixa”.

Public or private entities and local government corporationsrepresented on the Board of Directors or Control Committee ofanother savings bank may not have the same representatives onthe Control Committee of Caja de Ahorros y Pensiones deBarcelona.

Lastly, in line with the corporate governance recommendationsvis-à-vis the flotation of the subsidiary Criteria CaixaCorp,S.A., on 19 September 2007 ”la Caixa” signed an InternalRelationship Protocol with Criteria CaixaCorp, S.A. The purposeof the Protocol is to govern the relationship between ”la Caixa”and Criteria CaixaCorp, S.A. and their respective groups, withthe aim of defining the required mechanisms to guaranteethe appropriate degree of coordination, and to ensure that itinures to the benefit and common interest of the ”la Caixa”Group (to which Criteria CaixaCorp, S.A. belongs) and of thelisted company, while ensuring due respect and protectionfor the other shareholders of Criteria CaixaCorp, S.A. within aframework of transparent relations. In addition, an objective ofthe Protocol is to strike a balance in the operating relations soas to minimise and regulate conflicts of interest while respondingto the requirements of the markets and the regulators.

In accordance with the above objectives, the areas governed bythe Protocol are the principles and objectives, the main areas ofactivity of the Criteria CaixaCorp group, the intra-group operationsand services, the flows of information and the follow-up of theProtocol. The Protocol is available on the websites of the SpanishNational Securities Market Commission (www.cnmv.es) and CriteriaCaixaCorp, S.A.(www.criteriacaixacorp.es).



MembersAlejandro Aguilar

Luis Enrique Alameda

Núria Aloy

Mercè Àlvarez (*)

Estrella Amoedo

Joan Albert Argenter

Maria Artigas

Eva Aurín

Enrique Azpeleta

Enric Bach

Ramon Josep Badia

Joan Badia

Francisco Javier Báez

Albert Balcells

Victòria Barber

Antoni Baron

María Teresa Bartolomé

Maria Teresa Bassons

Albert Batalla

Ferran Bel

Robert Benaiges

Josefa Benavent

Antoni Joan Bertomeu

Macià Bibiloni

Ruth Bolaños

Fernando Bonet

Carles Bonet

Guillem Boscana

M.ª del Carmen G. Bruach

Francesc Cabana

Montserrat Cabra

José Luis Calvo

José Ramón Calvo

Joaquín Calvo

Aina Calvo

Francesc d’Assís Carbonell

Jordi William Carnes

Antonio José Carrique

Marc Casadellà

Xavier Casoliva

Jaume Castán

Josefina Castellví

Ramon Clotet

Miguel Coca

Josep Colomer

Susana Company

Maria Crespo

Josep Antoni Díaz

José Luis Echavarría

Óscar Luis Egea

Irene Erra

M. Àngels Esteller

Josep Fabra

José Antonio Fayas

José Manuel Fernández

Albert Fernández

Carlos Fernández-Lerga

M. Teresa Ferrés

Joana Font

Llorenç Fontan

Joaquim Forn

Josep Antoni Frias

Josep Fullana

Rafael Gabriel

Maria Cristina Galindo

Bárbara García-Andrade

Rosa Garicano

Joan Gaspart

Joaquim Gay de Montellá

Pere Gifré

Jaume Gil

Maria Mercè Giné

Albert Gras

Josep-Delfí Guàrdia

Carlos Güell

José Guirao

Monika Habsburg

Anna Hernández

Rafael Hinojosa

Alicia Huerta

Lluís Jerez

Inmaculada Juan

Enric Lacalle

Juan-José López

Montserrat López

Mario López

Catalina Llibre

Honorary ChairmenJosé Vilarasau

Ricardo Fornesa

ChairmanIsidro Fainé

First Deputy ChairmanSalvador Gabarró

Second Deputy ChairmanJordi Mercader

Third Deputy ChairmanJavier Godó

Secretary (non director)Alejandro García-Bragado

Deputy Secretary (non director)Óscar Calderón

General Assemblyat 31 December 2010

(*) On 18 January 2011 the General Assembly appointed Mercè Àlvarez as member representing the Ateneo Barcelonés, in place of Ferran Mascarell,who resigned on 29 December 2010.



Dolors Llobet

Manuel Llorca

Miguel Martín

Gustavo Martínez

Ramon Masià

Josep Maria Mauri

Josep Mayoral

Vicente Miguel

Francesc Josep Miró

José María Momblant

Rosa Maria Mora

Ángel Morales

Joan Andreu Morant

Antoni Maria Muntañola

María Antonia Muñoz

Pere Navarro

Carlos Nieto

Miquel Noguer

Justo Bienvenido Novella

Lluís Obiols

Joan Oliveras

Albert Ollé

Nuria Ortega

Antonio Padilla

Anna Pagans

Jordi Pàmies

Anton Pàmies

Jordi Panal

Xavier Parés

Víctor Ignacio Pascual

Francisco Javier Pérez

Celia Pino

Maria Carme Piqué

Joan Pons

Jordi Portabella

Ramon Pou

Josep Manel Puente

Maria Rosa Pujol

Enrique Quijano

Francisco Ramírez

Francisco Ramos

Xose Mario Rey

Lluís Riera

Óscar Rionegro

Miguel Ángel Roa

Josep Roca

Leopoldo Rodés

Jordi Roglà

Àngel Ros

Josep Manel Ruiz

Gaspar Sabater

María del Carmen Sanclemente

Carlos Santana

Pablo Saravia

José Antonio Segarra

Mariano Serra

Alfredo Santiago Serrano

Joan Sierra

Juan Antonio Socías

Roser Soldevila

Benet Triquell

María Ángeles Trouillhet

Sandra Maria Van Dellen

Josep M. Vila

Alfonso Vilá

Josep Vilaró

Jaume Vilella

Nuria Esther Villalba

Francisco Villoslada

Jeroni Vinyet

Josep Francesc Zaragozà

Executive Officers

President and Chief Executive OfficerJuan María Nin

Senior Executive Vice-PresidentsAntonio Massanell

Tomás Muniesa

Marcelino Armenter

Juan Antonio Alcaraz







DirectorsVictòria Barber



Montserrat Cabra

Aina Calvo

Josep-Delfí Guàrdia

Monika Habsburg

Inmaculada Juan

Juan-José López

Montserrat López

Dolors Llobet

Rosa Maria Mora

Miquel Noguer


Leopoldo Rodés





Executive Officers

President and Chief Executive Officer

Juan María Nin

Senior Executive Vice-PresidentsAntonio Massanell

Tomás Muniesa

Marcelino Armenter

Juan Antonio Alcaraz



MembersSalvador Gabarró

Jordi Mercader

Javier Godó

Montserrat Cabra

Aina Calvo

Juan-José López

Montserrat López




Executive Officers


Juan María Nin

Executive Vice-PresidentJaime Lanaspa

Executive Committee





MembersInmaculada Juan

Dolors Llobet

Miquel Noguer

Leopoldo Rodés



Executive OfficersPresident and Chief Executive OfficerJuan María Nin

Remuneration and AppointmentsCommittee


SecretarySalvador Gabarró

Jordi Mercader



Executive OfficersPresident and Chief Executive Officer

Juan María Nin

Investment Committee


MembersJavier Godó

Dolors Llobet



Executive OfficersPresident and Chief Executive OfficerJuan María Nin

Board of Directorsat 31 December 2010



ChairmanJaume Gil

SecretaryÀngel Ros

MembersJosefina Castellví

Josep Antoni Frias

Josep Fullana

Albert Gras

Maria Rosa Pujol

Carlos Santana

Joan Sierra

Control Committeeat 31 December 2010



MANAGEMENTSteering Committee

Isidro FainéChairman

Juan María NinPresident and Chief Executive Officer

Jaume Giró

and CSR Executive Vice-President

Jaime LanaspaWelfare Projects Executive Vice-President

Joaquim vilarFinancial Executive Vice-President

Juan Antonio AlcarazSenior Executive Vice-President

Francisco Javier CollHuman Resources Executive Vice-President

Alejandro García-BragadoGeneral Secretary

Antonio MassanellSenior Executive Vice-President

Tomás MuniesaSenior Executive Vice-President

Marcelino ArmenterSenior Executive Vice-President

Communication, Institutional Relations



Management


Juan María Nin

Senior Executive Vice-Presidents

Antonio MassanellTomás MuniesaMarcelino ArmenterJuan Antonio Alcaraz

Executive Vice-Presidents

HEAD OFFICE

Ignacio Alegre Global Risk ManagementIgnacio Álvarez-Rendueles International BankingFrancisco Javier Coll Human ResourcesLuis Deulofeu Executive Chairman of SILKElisa Duran Deputy to the ”la Caixa” Chairman’s officeJesús Escolano Risk – Analysis and ApprovalJoan Fábrega Network business – International BankingAlejandro García-Bragado General Secretary’s OfficeJaume Giró Communication, Institutional Relations & CSRJaime Lanaspa Welfare ProjectsRobert Leporace RecoveriesSebastià Sastre Legal ServicesJoaquim Vilar Financial Division

GENERAL AREA MANAGERS

Juan Carlos Gallego MadridJoan Ramón Fuertes Balearic IslandsVictorino Lluch Castile-Leon and Castile-La ManchaBibiano Manuel Martínez Levante and MurciaJuan José Muguruza Northern SpainAndrés Orozco Canary IslandsJuan Reguera Southern SpainManuel Romera Catalonia

General Managers / Area Managers

GENERAL MANAGERS

Manuel Barrachina Organisation and QualityLuis Cabanas Business BankingJulián Cabanillas General Services ManagementFernando Cánovas MarketsPablo Arturo Forero Asset ManagementJuan Miguel Gandarias Private and Personal BankingJuan Antonio García Banking ServicesJordi Gual Research DepartmentJuan Llopis Internal AuditM. Victòria Matia Electronic BankingManuel Fdo. Menéndez Investment BankingJosep Ramón Montserrat Property, SME’s and Individuals RiskOriol Ordax Validation and Technical Secretary’s OfficeJavier José Paso Tax AdvisoryÀngel Pes Corporate Responsibility and Brand



AREA MANAGERS

Jesús Lorenzo Alonso North West MadridMarc Arthur Benhamou GaliciaJosé Manuel Bilbao Basque RegionJoaquín Antonio Chaparro Extremadura and HuelvaFrancisco Cornejo Cordoba and MalagaJosé Ramón Cuesta Castile-LeonRafael Fernández East MadridFeliu Formosa Barcelona ProvinceVíctor Guardiola Murcia and AlicanteJosé Alberto Gutiérrez South West MadridRaúl José Marqueta Aragon, Navarre and La RiojaAmparo Martínez TarragonaJordi Nicolau GironaMiguel Ángel Palanco Granada, Jaén and AlmeriaMiquel Àngel Pla Barcelona CityEnrique Pujol LleidaFelipe Pulido Seville and CadizCarlos Javier Serrano Asturias and CantabriaJaume Torrents Metropolitan Area of BarcelonaAna Belén Vuelta Castile-La ManchaJuan Ignacio Zafra Valencia and Castellón

BUSINESS BANKING AREA MANAGERS

Juan Pedro Badiola Northern SpainMaría Jesús Català CataloniaFrancisco Costa Levante-MurciaJuan Antonio Pérez Castile-Leon and Castile-La ManchaMaría de las Cruces Rivera MadridRafael Herrador Southern Spain

PRIVATE BANKING AREA MANAGERS

Lluís Caballé CataloniaAna Guzmán Northern SpainJuan Andrés Llamas Madrid

Corporate Directors

Óscar Calderón General Vice-Secretary’s OfficeNatividad Capella Risk and Management Control of Markets OperationÓscar Valentín Carpio Corporate and Public Sector Risk ControlJordi Fontanals Information SystemsJavier Ceferino Garcia-Lluís Transactional Banking and SMEsCarles Gramunt Corporate BankingJordi Ibern Global Risk ManagementJordi Mondéjar Management and Expenditure ControlIgnacio Moreno de Guerra Commercial InformationJavier Pano TreasuryLuis Enrique Pérez Commercial and Individual BankingIgnacio Redondo Legal and Tax AdvisoryAlfons Salvó Human ResourcesAlbert Soler Structured Financing



Division Heads

Ricardo Agramunt Commercial PositioningTeresa Algans QualityVíctor Manuel Allende Private and Personal Banking DevelopmentJoan Alfons Álvarez Regulatory ComplianceFernando Arce Structured Finance-BusinessesIgnacio Badiola Institutional BankingJosé Ballbé Territorial AuditJuan Manuel Bermejo International Branches and BusinessTomàs Bravo Customer Treasury DivisionAlfredo Bustillo Communication and SponsorshipVicenç Buxarrais Counterparty RiskPere Capella Institutional RelationsPere Lluís Carrera Legal & Labour RelationsCarles Casanovas Marketing and Advertising ServicesJuan Cebrián Capital Management and PlanningCarlos de Parias Corporate and AcquisitionsÁngel José Díez Corporate FinanceAna María Díez Foreign TradeFco. Javier Estrada Altium and Investment StrategyCarles Feliu Brand and Corporate ImageMiguel Ángel Fernández SecurityMarta Fina Organisation and EfficiencyErnesto Gil AccountingAdolfo Gómez Financial Auditing and Risk ManagementFrancesc Xavier Gómez Consolidation and Internal ControlPere Huguet Technical Secretary to the President and CEO’s OfficeMaría Beatriz Kissler Banking Operating ServicesJesús Antonio Losa Energy FinancingJavier Marín Martínez Distribution and OriginationMaría Luisa Martínez Communication and External RelationsJuan Masjoan Compliance and Investee AuditJuan Morlà CardsMaría Isabel Munuera Market Operating ServicesJosé Javier Nicolás Personal BankingEdward Michel O’Loghlen Investor RelationsFelipe Augusto Oriol Strategic Banking AlliancesJosep Parareda SME BankingJuan José Pelayo SyndicationsJavier Ignacio Peyra Approval Policies and ProceduresMª Luisa Retamosa Media AuditJosé María Rifé Default ManagementJoan Rosás International Financial Institutions and Representative OfficesFrancisco Emilio Ruiz Administration of Own and Investee PortfolioSergio Sala Specialised FinanceDaniel Torras Management Development CentreÀlex Valencia Balance Sheet Risk AnalysisFrancisco Javier Zuloaga Internal Communication

The ”la Caixa” Group

Strategic KeysMission, Vision and ValuesNew 2011-2014 Strategic Plan

The ”la Caixa” Group’s New Structure”la Caixa” Group’s reorganisation

This section of the 2010 Annual Report describes Management’s perspective onand analysis of the ”la Caixa” Group’s strategic keys: Mission, Vision and Values,and offers a description of the New 2011-2014 Strategic Plan. This will alsoinclude general details of the ”la Caixa” Group’s New Structure.

The ”la Caixa” GroupStrategic Keys


Mission

The Mission of an institution defines its reason for existing, its aims and the basicobjective to be achieved, vis-à-vis the various stakeholder groups.

The Mission of ”la Caixa” Group:To encourage saving and investment by offering the best and most comprehensiverange of financial services to the greatest number of customers and make a decisivecontribution to society to provide flexible tailored coverage of basic financial andsocial needs.

vision

Its Vision is a projection, an image of the institution’s future in the long term.

The Vision of ”la Caixa” Group:The leading financial group in the Spanish market with an international vocationaimed at generating value for its customers, employees and for society.

values

The strategic action of ”la Caixa” is based on its identifying values, action guidelinesand characteristic convictions. The Institution’s values are:

• Leadership: commitment, integrity, professionalism and teamwork.• Trust: of customers and society based upon service and top quality customer

attention.• Social commitment: the ultimate aim of our business.

THE ”LA CAIxA” GROUP: STRATEGIC KEYSMission, vision and values

Caja de Ahorros y Pensiones de Barcelona, ”la Caixa”, was established in 1990 as a result of the merger of Caja de Pensiones para la Vejezy de Ahorros de Cataluña y Baleares, founded in 1904, with Caja de Ahorros y Monte de Piedad de Barcelona, founded in 1844, and it istherefore the lawful universal successor to the personality of those institutions, namely their nature, aims, rights and obligations.

Due to its origins it was established as a non-profit financial institution providing beneficent, community services with a private boardof trustees, and is separate from any company or institution.

The object of ”la Caixa” is to encourage all authorised forms of saving, to carry out beneficent work for the well-being of thecommunity and invest the related funds in safe and profitable assets of general interest, and promote economic and socialdevelopment in its action area.

The basic aims set forth in its Bylaws are as follows:

• To encourage savings as the individual economic expression of collective interests.• To encourage providence generally as the expression of an individual and collective interest.• To provide financial and social-interest services.• To finance and support beneficent and/or social-interest activities.• To develop the Institution so as to enable it to fulfil its aims in the most appropriate manner.

The Mission and Vision of ”la Caixa” have been shaped by its origins, object and basic aims and constitute a reference for theInstitution’s future. This year, as part of the new 2011-2014 Strategic Plan, the ”la Caixa” Group’s Mission was reinforced as a clearsign that the Institution wishes to remain as it is. The Group’s Vision has been updated in the new Strategic Plan to include theinternational character of the Institution in its interest to be close to its customers. And its Values, which form the foundation on whichits strategy stands, have also been brought up to date to place more emphasis on the Leadership of all those who form part of the”la Caixa” Group.

“THE MISSION AND THE vISION OF”LA CAIxA” AS BASIC FACTORS FOR THE

STRATEGIC DEvELOPMENT OF THE GROUP”

“THE DEFINING vALUES OF ”LA CAIxA”UNDERPIN THE INSTITUTION’S STRATEGY”



2011-2014, a new Strategic Plan to once again makethe difference

In 2010 the ”la Caixa” Group successfully completed the development of its 2007-2010 Strategic Plan. Despite an economic setting that was far more complex thanexpected, all the organisational and business structure challenges were met, withincreases in market share.

In Spain individual banking was consolidated as a fundamental cornerstone ofthe Group’s business coupled with the development of a specific model for eachsegment: individual banking, private banking, SME banking, business banking andcorporate banking. All the above have enabled the Institution to strengthen itscommercial positioning with generalised gains in market shares.

A platform has been set up to expand internationally based on threecornerstones: representative offices, operating branches and banking associates.Furthermore, during this period Criteria CaixaCorp was listed on the market andhas acted as a vehicle towards expanding abroad through holding a distinctiveinvestee portfolio. Finally, in 2007-2010 the ”la Caixa” Group consolidated its socialstanding through its Welfare Programmes and the creation of MicroBank.

Thus, the ”la Caixa” Group now presents a good starting point to develop a newStrategic Plan: enviable financial situation, great commercial strength, model ofcustomer care (quality service, territorial expansion), excellent professionals, and soon, which will clearly allow the Institution’s challenges to be met.

With the slogan “Making the difference”, the 2011-2014 Strategic Planaims to underscore its vocation to leadership and growth, both nationally andinternationally, and to maintain its commitment to the business fabric. Thusunderscoring the social responsibility of the ”la Caixa” Group, now more than everin a complex economic setting.

This means growing to guarantee the ”la Caixa” Group model and making thedifference. The ”la Caixa” Group has always had and wishes to continue having amanagement model with a difference defined by:

• Social commitment• Prudence and long-term vision• Proximity to customers• Excellence in service• ualified, motivated staff• Technological innovation• Model of corporate governance

“GENERATING LONG-TERM vALUEFOR STAKEHOLDERS”

CUSTOMERS

SO

CIETYEM

PLOY

EES

The ”la Caixa” GroupStrategic Keys


To achieve the above, the Strategic Plan has considered 11 Great Challenges, suchas consolidating the leadership of ”la Caixa” in retail banking in Spain, diversifyingthe business, becoming more international, maintaining its commitment with thebusiness fabric –also through a distinctive investee portfolio – and underscoring itssocial commitment. Particularly, the 11 Great Challenges for the ”la Caixa” Groupin 2011-2014 are as follows:

1. To strengthen its leadership in retail banking.2. To diversify its business towards companies.3. To balance its territorial presence.4. To grow internationally.5. To maintain a distinctive investee portfolio.6. To maintain financial strength.7. To improve returns.8. To progress in organisational efficiency and flexibility.9. To develop and motivate talent.

10. To underscore its social commitment.11. To communicate the aims of the institution both internally and externally.

“THE STRATEGIC PLAN REAFFIRMSTHE GROUP’S vOCATION TO LEADERSHIP

AND GROWTH”



THE ”LA CAIxA” GROUP’S NEW STRUCTURE”la Caixa” Group’s reorganisation

The Financial Report (pages 39 to 121) of the ”la Caixa” Annual Report includesthe fundamental features which will help to interpret the business and the economicand financial performance of the Group in 2010.

Additionally, it is worth noting that on 27 January 2011 the Boards of Directorsof ”la Caixa” and Criteria CaixaCorp agreed to sign a Framework Agreement for”la Caixa” Group’s reorganisation, by virtue of which, and as established in Spain’s new Savings Bank Act (LORCA in Spanish),”la Caixa” shall indirectly control the banking activity through a listed bank (the current Criteria CaixaCorp). On 24 February 2011,the Boards of Directors agreed on the definitive conditions of the reorganisation, which is subject to approval by the General Assemblyof ”la Caixa” and the General Shareholders Meeting of Criteria CaixaCorp.

The process, which in all likelihood will conclude in July 2011, aims to define a new structure, which, while maintaining the fulfilmentof the social aims offered by ”la Caixa” and developing the Group’s present business, will enable it to adapt to the new domestic andinternational regulatory requirements, particularly the new requirements of the Basel Committee on Banking Supervision (Basel III).

Through this reorganisation, ”la Caixa” will transfer its banking business (except some assets, mainly real estate assets and certainliabilities) to Criteria CaixaCorp (which will become a banking group called CaixaBank) in exchange for Criteria CaixaCorp transferringpart of its stakes in listed companies (Abertis, Gas Natural Fenosa, Aigües de Barcelona, Port Aventura and Mediterránea), togetherwith newly issued shares for an amount totalling EUR 2,044 million.

CaixaBank, controlled by ”la Caixa”, will start out with a leading position in the Spanish market in the financial and insurance sector,and additionally will be diversified with further complementary businesses, such as stakes in international banks and in Telefónica andRepsol.

It will have the best level of asset quality among the main comparable groups in the sector, given its lower NPL ratio (3.66%) the bestcoverage (70%) and the fact that it has no direct exposure to real estate assets. As regards capital adequacy, and considering an issueof necessarily convertible bonds totalling EUR 1,500 million, it will achieve pro forma core capital of 10.9% (Basel II) in 2010, thehighest level within the largest banking groups in Spain, and will boast an excellent liquidity level of EUR 19,638 million. It is estimatedthat CaixaBank will be ranked number 10 in the euro zone and among the top 20 in Europe in terms of stock capitalisation.

In addition, ”la Caixa” will form a group of another series of investees and businesses, such as real estate businesses as part of a newcompany, of which it will hold 100%.

The new configuration of the Group will allow ”la Caixa” to maintain its leadership in the Spanish financial system, the completion ofthe new 2011-2014 Strategic Plan, and to take advantage of the growth opportunities that may arise in the coming years. ”la Caixa”,which will continue to be a savings bank, will maintain its level of funds allocated for the Welfare Projects, and it will be strengthenedwith the new reorganisation, with a sounder financial structure that guarantees its sustainability and future growth.

“WITH THE NEW STRUCTURE ”LA CAIxA”CHOOSES THE INDIRECT CONTROL OF THE

BANKING BUSINESS THROUGH A LISTED BANK”

WelfareProjects

WelfareProjects

79.5%

(Listed)

CURRENT STRUCTURE

Banking business

NEW STRUCTURE

Banking business andinsurance companies

(Former Criteria, listed) (Unlisted)

NEW INSTITUTION

100%81.1%

International banks

Services

International banks

Repsol + Telefónica

Industrial portfolio

Real estate assets

Insurance companies

2010 Financial Report of the ”la Caixa” Group

1. High-quality profits in 2010

2. Great commercial capacity: the strengthof the banking business

3. Investee portfolio

4. Active risk management

5. High financial strength

This section of the Annual Report describes the key features which may aidinterpretation of the Group’s overall economic and financial performance in2010, within the context of its business and risk management setting. The mostsignificant details of these key features are provided on pages 40 and 41.

To aid analysis of the Group’s activities and profits, information from the lastthree years is provided. The information is based on the consolidated financialstatements of the ”la Caixa” Group. The consolidated financial statements anddirectors’ report for 2010, together with the auditors’ report dated 27 January2011, which contains an unqualified opinion, may be consulted on the website ofthe Spanish National Securities Market Commission (www.cnmv.es).

As part of restructuring in the banking sector, on 16 September 2010 theExtraordinary General Meetings of ”la Caixa” and Caixa d’Estalvis de Girona (CaixaGirona) approved the merger of Caixa Girona (the institution absorbed) by”la Caixa” (the absorbing institution) and which, after receiving official approval,came into force on 3 November 2010. On this day ”la Caixa” registered in itsfinancial accounts all the assets, liabilities and contingent risks of Caixa Gironaappraised at a fair value. The balance sheets of the merger with Caixa Gironatotalled assets of EUR 7,802 million at 31 December 2009. For an adequateinterpretation of the 2010 Annual Report it is thus necessary to take into accountthe merger, which concluded on 1 January 2011 with the rapid and satisfactoryintegration of Caixa Girona from a technological and operative viewpoint in theinformation systems and processes of ”la Caixa”.


2010 FINANCIAL REPORT OF THE ”LA CAIXA” GROUP

1. High-quality profits in 2010

1.1 Business growth coupled with good profits and conservativewrite-downs PAGE 42

Recurring profit: EUR 1,507 million,down 11.9%.

High, sustained recurring profits enabled the institution tomake conservative allowances.

Profits attributable to the Group: EUR1,307 million, down 13.4%.

Total net extraordinary profits EUR –200 million.

Total assets: up 5.1%. Total assets stand at EUR 285,724 million.

1.2 Active management of margins, efficiency and high returns PAGE 44

The Group’s high level of income. Pressure on net interest income offset by sustained rise incommissions and other sources of revenue.

Large fall in operating expenses (–4.0%). Efficiency ratio of 43.6%.

Net operating income of EUR 3,323million.

Sound net operating income enabled the institution toabsorb larger credit-loss allowances and write-downswithout making use of the generic provision.

Good levels of returns. Recurring ROE of 9.3%. ROA 0.7%. RORWA 1.4%.

1.3 Welfare Projects PAGE 50

Budget for 2011: EUR 500 million. The budget remains the same, thus reflecting theinstitution’s commitment to society.

1.4 Business segment reporting PAGE 51

Good evolution of business results. Spanish banking and Investee portfolio.

2. Great commercial capacity: the strength of the banking business2.1 Sustained and balanced growth in banking activity PAGE 53

Rise of EUR 21,618 million in thebanking business volume, up 5.2%to EUR 437,443 million.

Customer funds totalled EUR 247,897 million, up EUR10,098 million (4.2%) and loans totalled EUR 189,546million, up EUR 11,520 million (6.5%).

High market shares: Deposits 10.0% and loans 10.6%.

2.2 Customer base: the core of the business PAGE 56

Retail banking model with specialisedsegmentation and focus oncommercial activity.

10.5 million customers and penetration of 21% inindividual customers, 15.7% market share in payrolldeposits and 13.6% in pension deposits. Boosting businessspecialisation.

2.3 Commercial network and human resources: cornerstones PAGE 64

Extensive network and qualified staff. 5,409 branches (market share of 12.6%) and 28,651 employees.

2.4 Multi-channel management: permanent relationshipwith customers PAGE 66

Multi-channel management:permanent relationship withcustomers, providing a comprehensiverange of products and services.

ATMs: network of 8,181.

Línea Abierta (Internet channel): 6.6 million customers.

Mobile banking: 1.8 million customers.

2.5 Payment systems: a distinctive offering PAGE 70

Payment systems: a distinctive rangeand comprehensive service.

10.3 million cards issued by ”la Caixa”, leader in turnoverwith a market share of 17.7%.

169,966 Points of Sale (POS).

2.6 Innovation in customer services PAGE 71

2.6.1 Technological innovation as a priority for improving customer care and service PAGE 71

2.6.2 Innovation and leadership in information systems PAGE 74

2.6.3 Branches and services designed for personalised attention PAGE 76

2.7 Quality and customer care: the groundwork for the future PAGE 77

Quality to satisfy customers andguarantee future growth.

Better results than competitors in terms of quality, as ratedby customers.

2.8 Supporting the business: ”la Caixa” subsidiaries PAGE 78

Subsidiaries that provide supportservices.

Multi-channel management, property services and others.

BANKING BUSINESS VOLUME(Millions of euros)

08 09 10

Customer funds Loans to customers

437,443414,123 415,825

ÿ

6.8%ÿ

0.4%ÿ

5.2%

08 09 10

2,052

1,5071,710

RECURRING PROFIT ATTRIBUTABLETO THE GROUP(Millions of euros)

11.9%16.7%

ÿÿ

1,510 1,3071,802

Total profit attributable to the Group

RECURRING PROFIT 2010 Yr-on-yrchange

Gross income 6,745 –6.1%Net operating income 27.505 3,323 –8.3%Efficiency 43.6% +0.7ROE 9.3% –2.0

WELFARE PROJECTS

Budget of EUR 500 million67% for social programmes

”la Caixa” LEADER10.5 million customers21% penetration in individual customers

Branches 5,409”la Caixa” Group’s employees 28,651ATMs 8,181

Línea Abierta customers (millions) 6.6Mobile banking customers (millions) 1.8

Cards issued (millions) 10.3POS terminals (POS) 169,966

Market shares and place in the ranking

Latest data available 2010 SHARE

Payroll deposits 15.7%Pension deposits 13.6%Mortgages 11.0%Card turnover 17.7%

1st Merchant business (POS) 21.2%Savings life insurance 14.8%Loans (resident private sector) 10.6%Demand deposits 11.8%National electronic clearingsystem (SNCE) 12.7%Deposits (resident private sector) 10.0%

2nd Pension plans 16.2%Commercial loans 9.5%

3rdInvestment funds 10.6%Factoring and confirming 13.3%

RANKING


3. Investee portfolio3.1 Criteria CaixaCorp: internationalisation and diversification PAGE 80

3.1.1 Criteria: subsidiary which encompasses the largest portion of the ”la Caixa” Group’sinvestee portfolio PAGE 80

Investment strategy: diversificationof income and international expansion.

Generating value with controlled risk. The ”la Caixa” Groupmaintains a 79.5% stake at 31/12/10.

3.1.2 Utility business PAGE 81

Strategic stakes in utility companies,offering basic services to society.

Investments in leading companies, with capacity to growand generate value.

3.1.3 Financial business PAGE 83

Insurance companies and specialisedfinancial services.

Spain’s leading company in the insurance sector.Complementing the products and services of ”la Caixa”.

International banking. Stakes in countries where it can provide value and takeadvantage of the growth potential.

3.2 Active management of the ”la Caixa” Group’s investee portfolioPAGE 86

Strategic objectives: increasing theproportion of the financial businesswith active management.

Increasing the stake in The Bank of East Asia to 15.2%.Acquiring 99.8% of Adeslas and reducing the stake inAgbar to 24.0%.Agreement in January 2011 to sell 50% of VidaCaixaAdeslas to Mutua Madrileña.Sale of vehicle lease division to Arval.

3.3 MicroBank PAGE 88

3.4 Venture capital and financing for entrepreneurs PAGE 92

4. Active risk managementGlobal risk management. Key factor within the Group’s strategy.Credit risk: ensuring the quality of theloan portfolio.

Adequate risk approval procedures. Support providedwith advanced tools and measurement and monitoringprocedures.

Diversified loan portfolio withadequate collateral.

Contained NPL ratio of 3.71%, lower than the average ofthe sector with high coverage of 70% and 140% includingmortgage collateral.

Market risk: reducing exposure to riskon the balance sheet positions.

Extensive natural hedges and financial market dealings.

Liquidity risk: diversifyingfinancial sources in markets andproducts.

Active management of the balance sheet and sourcesof financing to reach excellent levels of liquidity.

Operational risk: minimising the risksinherent to the business.

Qualified staff, procedures established and controlsintroduced enable the institution to lower risks.

Regulatory compliance risk. Promoting the culture of compliance.

5. High financial strength5.1 Excellent liquidity levels PAGE 118

Conservative, proactive managementof liquidity levels.

Excellent position of capital adequacy enables the Group’sfuture business growth: 6.9% of Assets.

5.2 Excellent capital adequacy levels PAGE 119

Core Capital of 8.6%. Capital ratio (BIS ratio) 11.8%. Tier 1: 9.9%.

Surplus capital: EUR 6,130 million.

5.3 ”la Caixa” Group very good ratings PAGE 121

Very good ratings. Highlighting the Institution’s strong market positioning andfinancial strength.

QUALITY OF ASSETS 2010

NPL ratio”la Caixa” Group 3.71%Financial sector 5.81%High coverageCoverage ratio 70%Coverage ratio with mortgage collateral 140%Generic provision for credit lossesat 31/12/10 (millions of euros) 1,835

FINANCIAL STRENGTH

Liquidity (millions of euros) 19,638

Solvency Basel II (%)

Core Capital 8.6%Tier 1 9.9%Bis Ratio 11.8%Surplus capital (millions of euros) 6,130

2010

79.5%

CRITERIA CAIXACORP

FINANCIAL BUSINESS

LISTED COMPANIES

INTERNATIONAL RETAIL BANKING

INSURANCE COMPANIES

SPECIALISED FINANCIAL SERVICES

UNLISTED COMPANIES

UTILITIES

PERFORMANCE OF MARKET VALUEOF CRITERIA AND IBEX 35(Millions of euros)

60

140

Dec2009

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2010

80

100

120

Criteria

20.85% Criteria - –17.43% IBEX 35

Ibex 35

SHORT-TERM LONG-TERM

Standard & Poor’s A–1 A+

Moody’s P–1 Aa2

Fitch F1 A+

As of March 2011



The ”la Caixa” Group’s recurringprofit amounted to EUR 1,507million in 2010, down 11.9%,without making use of its generalcredit loss provisions, and with astrong commercial performance:

• Total income (gross income) stood atEUR ,745 million and this, coupledwith a stringent cost-containmentand streamlining policy (expenseswere down 4.0%) and the Group’shigh commercial capacity, enabledthe efficiency ratio to grow to 43. %,while net operating income reachedEUR 3,323 million, 8.3% down on theprevious year.

• Highly prudent strategy, with a totalof EUR 2, 51 million allocated toprovisions to reinforce the strength ofthe balance sheet, without making useof credit loss provisions.

• Net extraordinary profit of EUR 34million allocated in full to provisionsand an amount of EUR –200 million netof taxes for future management of thebusiness.

• The Group’s attributable profit stood atEUR 1,307 million, 13.4% down on theprevious year, in a complex environment.The institution consolidated its financialstrength and liquidity, restraining itsNPL ratio and increasing its coverage,without making use of the general creditloss provisions, which remained at EUR1,835 million as at the end of 2009, dueto its capacity to generate revenues,thus consolidating its financial strengthto counter possible future adverseconditions.

The ”la Caixa” Group’s business displayedbalanced, quality growth in 2010, in a

complex economic and financial context

characterised by volatility in the financial

markets and stagnant interest rates, rising

NPL ratios and fierce competition in the

banking sector.

The Group’s robust commercial capacity,

its effective management of margins, its

customer service management efforts

and the favourable performance of the

investees led to income of EUR ,745

million. This strong rise in income,

combined with a significant reduction

in costs, made it possible to reach an

efficiency ratio of 43. % and maintain

high returns of 9.3% recurring ROE.

Hence, net operating income reached

EUR 3,323 million and absorbed

significant provisions (mainly for credit

losses) to reinforce the strength of the

balance sheet with the result that net

recurring profit stood at EUR 1,507

million, down 11.9%. Total attributable

profit stood at EUR 1,307 million in 2010,

including extraordinary net gains of EUR

34 million allocated in full to provisions

to strengthen the balance sheet, and

also EUR 200 million (EUR 28 million

before tax) to provisions for the future

management of the business.

All the above, in conjunction with active

and stringent risk, liquidity and capital

adequacy management, consolidated

the Group’s considerable financial

strengths. Therefore, the ”la Caixa”

Group is optimally positioned to manage

successfully a complex and demanding

context like the present, and to ensure the

growth of its businesses and respond to

the credit needs of all its customers.

1. High-quality profits in 20101.1. Business growth coupled with good profits and conservative write-downs

08 09

2,052

Recurring profit

PROFIT ATTRIBUTABLE TO THE ”LA CAIxA”GROUP(Millions of euros)

08 09 10

1,307

13.4%

�

1,510

16.2%

�

1,802

Total profit

Extraordinary profit

(250)08

(200)09

(200)10

10

1,507

11.9%

�

1,710

16.7%

�



5.1% increase in total assets.

The ”la Caixa” Group’s total assetsamounted to EUR 285,724 million, anincrease of EUR 13,851 million in 2010,5.1% up.

In an economic climate affected bythe slowdown in economic activity,”la Caixa” managed to achieve anincrease in the volume of the bankingbusiness (loans and credits plus fundsmanaged) of EUR 21, 18 millioncompared to 2009 to reach a figureof EUR 437,443 million. The grossamount of loans and credits grew by EUR11,520 million, up .5%, and net loansrose by EUR 8,887 million. Total customerfunds rose by EUR 10,098 million, up4.2%, thanks to active management ofmargins and structure, and off-balance-sheet funds increased by EUR 4,421million.

Other liabilities and accrued expenses anddeferred income increased by EUR 11,027million of which EUR 9,282 million wereassets sold under repurchase agreementsthrough counterparty entities and EUR1,391 million through the Treasury.

Own funds (reserves plus profits) increasedby EUR 725 million or 4.3%, after takinginto account the profit attributable to theGroup of EUR 1,307 million and the sumallocated to Welfare Projects. In addition,the fair value adjustment to available-for-sale financial assets fell in 2010 by EUR 208million due to the impact of the negativeperformance of the securities markets in2010.

For a more detailed explanation of themain balance sheet aggregates, pleasesee section 2. Great commercial capacity:the strength of the banking business,section 3. Investee portfolio, and section5. High financial strength.

Consolidated income statements of the ”la Caixa” Group

YEAR-ON-YEAR CHANGE

(Figures in millions of euros) 2010 2009 AMOUNT IN %

AssetsCash, balances with central banks and credit institutions andfixed-income securities 33,240 33, 78 (438) (1.3)Loans and advances to customers, net 182,528 173,641 8,887 5.1Insurance contract assets 21,389 21,261 128 0.6Equity securities 20,367 19,997 370 1.9Tangible and intangible assets 10,241 8,845 1,39 15.8Other assets and prepayments and accrued income 17,959 14,451 3,508 24.3

Total Assets 285,724 271,873 13,851 5.1Liabilities 263,744 250,470 13,274 5.3

Deposits from credit institutions 19,041 22,521 (3,480) (15.5)On-balance-sheet customer funds 211,308 205,631 5,677 2.8Provisions 2,975 2,925 50 1.7Other liabilities and accrued expenses and deferred income 30,420 19,393 11,027 5 .9

Equity 21,980 21,403 577 2.7Own funds 17,421 1 , 9 725 4.3

Of which: Profit attributable to the Group 1,307 1,510 (203) (13.4)Valuation adjustments 1,404 1,612 (208) (12.9)Non-controlling interests 3,155 3,095 60 1.9

Total Liabilities and Equity 285,724 271,873 13,851 5.1

“GROWTH IN THE BANKING BUSINESS”



In view of the particular significance ofthe non-recurring extraordinary profitsrecorded in 2010 and 2009, and in orderto aid understanding and analysis ofthe performance of the business, theaccompanying consolidated incomestatement shows the profit from theordinary recurring activities ofthe ”la Caixa” Group. In addition,the recurring profit is adjusted for theeffects of extraordinary profit net of taxand non-controlling interests, in orderto establish the profit attributable to theGroup.

Gross income totalsEUR 6,745 million.

Net interest income totalled EUR 3,152million, down 19.8% after operatingvolume and margins management andthe impact of the interest rate yieldcurve. This income largely reflects thetransferring of falling interest rates by theInstitution to the mortgage instalments ofits customers.

1.2. Active management of margins, efficiency and high returns

Consolidated income statements of the ”la Caixa” Group

(Figures in millions of euros) 2010 2009CHANGE

%

Financial income ,91 9,097 (24.0)Financial expenses (3,7 4) (5,1 5) (27.1)Net interest income 3,152 3,932 (19.8)Dividends 460 400 15.0Share of results of entities accounted for using the equity method 934 840 11.2Net fee and commission income 1,407 1,303 8.0Gains/losses on financial assets and exchange differences 252 130 91.Other operating income and expenses 540 582 (7.1)Gross income 6,745 7,187 (6.1)Total operating expenses (3,422) (3,5 5) (4.0)Net operating income 3,323 3,622 (8.3)Credit loss provisions and other (1,454) (1,401) 3.9Gains/losses on disposal of assets and other (113) (90) 24.3Profit before tax 1,756 2,131 (17.6)Income tax 66 (127) (153.0)Profit after tax 1,822 2,004 (9.0)Profit attributable to non-controlling interests 315 294 7.6Recurring profit (*) 1,507 1,710 (11.9)Extraordinary income 634 249Extraordinary write-downs ( 34) (249)Provision for future management of the business (200) (200)Extraordinary profit (200) (200)Profit attributable to the Group 1,307 1,510 (13.4)

( ) Recurring profit excluding extraordinary profit.

“SOUND LEvEL OF GROUP PROFITS”

08 09 10

3,508

NET INTEREST INCOME(Millions of euros)

3,152

19.8%

�

3,932

12.1%�



The total income from the investeeportfolio (dividend income and the shareof results of companies accounted forusing the equity method) amounted toEUR 1,394 million, up 12.5% due to theperformance of the investees’ businessesand their capacity to distribute recurringdividends. Thus, the dividends frominvestees classified as available-for-salefinancial assets totalled EUR 4 0 million,up 15%, and post-tax profits of thecompanies accounted for using the equitymethod, basically Gas Natural, AbertisInfraestructuras, Banco BPI, Aig es deBarcelona, GF Inbursa, Erste Group Bank,The Bank of East Asia and Boursorama,totalled EUR 934 million, a considerablerise of 11.2%.

Net fees and commission income grewby 8.0% to reach EUR 1,407 million,thanks to the rise in business, particularlyin companies and investment bankingcoupled with investment and insurancefunds with appropriate management ofthe services offered to customers. Feesand commissions relating to bankingservices increased by 9.3%, based on

the provision of quality services andpersonalised advice, with maintenanceand deposit administration fees beingthe lowest in the market, especially forbankbooks. Furthermore, the fees andcommissions relating to investment fundsrose by 25.7%.

The gains/losses on financial assets andliabilities and exchange differences stoodat EUR 252 million.

Other operating income and expensesamounted to EUR 540 million andinclude the net insurance premiumsand the mathematical provisions relatingto the non-life business of the insurancesubsidiaries, as well as the income fromthe non-banking subsidiaries and theaccrued financial fees and commissionsoffsetting expenses.

Despite a considerable fall in the netinterest income offset by the positiveperformance of the remaining business,gross income proved its capacity togenerate recurring income, and stood atEUR ,745 million, down .1%.

08 09 10

INCOME FROM INvESTEESDividend income plus the share of resultsof companies accounted for using the equitymethod(Millions of euros)

1,1131,240

11.4%�

1,394

12.5%�

COMMISSIONS(Millions of euros)

1,250 1,303

4.2%�

1,407

8.0%�

08 09 10

08 09 10

GROSS INCOME(Millions of euros)

6,7527,187

6.4%� 6,745

6.1%

�



Efficiency and productivity

The Group’s stringent cost containmentand streamlining policy, coupled withimproved productivity, allowed areduction of 4% in operating expenseswhich stood at EUR 3,422 million.

The Group’s considerable commercialstrength, with its 28, 51 employees, thelargest network of the Spanish financialsystem with 5,409 branches, 8,181 ATMsand its leadership in online bankingvia Linea Abierta (with over . millioncustomers), and in mobile phone andelectronic banking services, has resulted inthe balanced and high-quality growthof the business and the commercialactivity.

The objective of growing the ”la Caixa”Group’s banking business is being carriedout through managing the cost-to-incomeratio to ensure competitiveness andfuture profits. In 2010 ”la Caixa” provedits flexibility and considerable capacity toadapt to the environment, despite havingincreased its number of branches by 83,mainly due to absorbing Caixa Girona.

In recent years considerable investmentshave been made which mainly relateto the development of businesses,technology and new retail channels,improvements to the information systemsand the optimisation of processes toenhance the branches’ commercialactivities, the internal risk management

and control systems and human capitaltraining.

Technological advances have cutadministrative tasks at the branches,thereby freeing up resources to focus oncommercial activities and personalisedcare to customers.

These improvements, in conjunction withthe efforts made in streamlining andcontrolling operating expenses, includingadministrative expenses and amortisationcharges, led to a reduction in theseexpenses of 4% in 2010.

The combination of these factors explainsthe ongoing growth in the businessvolume ratios (total customer funds andloans) per employee and branch, whilethe number of employees per branchremains at a low level of 4.7, one of thelowest in the Spanish financial industry.

As a whole, the streamlining of theGroup’s costs and the favourableperformance of the business volumeratios show the high growth potential interms of efficiency and profit.

In 2010 total income (gross income) stoodat EUR ,745 million, down .1%. Inthis respect, the strict cost containment,streamlining and reduction policy, coupledwith the network’s high commercialcapacity led to a 43. % efficiency ratio,while net operating income stood at EUR3,323 million, down 8.3%.

1.2. Active management of margins, efficiency and high returns (cont.)

08 09 10

25,335

5,530 5,409

24,944 25,288

5,326

Branches Employees (*)

MAIN COMPONENTS OF THE OPERATINGExPENSES OF ”LA CAIxA”

(*) Total Group employees: 28,651

3,565

3,422

1%�

4%

�

FALL IN ExPENSES(Millions of euros)

08 09 10

3,529

74,887

583

78,075

680

80,873

614

08 09 10

Businessvolumeper branch

Recurring net operatingincome per branch

BRANCH PRODUCTIvITY RATIOS(Thousands of euros)

16,670

145.2

17,298

131.4

08 09 10

Businessvolumeper employee

Recurring net operatingincome per employee

EMPLOYEE PRODUCTIvITY RATIOS(Thousands of euros)

16,346

127.2



“TAKING ADvANTAGE OF TECHNOLOGYTO IMPROvE PRODUCTIvITY AND

MAxIMISE TIME SPENT ON COMMERCIALACTIvITIES”

EFFICIENCY RATIO (%) (*)

(*) Staff + overhead costs / gross income

08 09 10

45.2

42.943.6

Efficiency Improvement Plan

The Efficiency Improvement Plan aims toachieve a high level of efficiency of the”la Caixa” Group, with permanent andsustainable improvement over time. Theplan involves setting and implementingobjectives defined around three majorcornerstones:

• Securing income: To ensure that theGroup’s businesses and segments makepositive and increasing contributions tothe Institution’s profit. The differentiatedproduct offering, the excellent standardof service quality provided to customersthrough the branch network or otherbanking channels, the commercialeffort and active margin managementhave been the keys to ensuring thegeneration of income in a highlycompetitive setting.

• Containment of costs and investmentneeds: Given the current economicclimate and the new specialised networkmodel implemented, the Institutionhas continued its considerable effortsto contain and rationalise costs andinvestments by analysing and assessingeach entry according to the need andexpected saving. This year the BranchOptimisation Plan for the retail bankingsegment continued to be implementedto integrate certain branches, often

owing to the close distances betweenthem. ”la Caixa” also introducedimprovements which enabled it toreduce the number of documents sentfrom one branch to another, greaterenergy saving in all workplaces anda reduction in the consumption ofpaper and in correspondence sent tocustomers, among other things, whichin addition to the positive impact onefficiency, will contribute to reinforcethe Institution’s commitment tosustainability.

• Fostering the self-service channelsand operational innovation: Thesefactors are key to ensuring that,while customers are provided with adifferentiated service, the operatingprocesses and therefore the relatedcosts are effectively managed, so thatthe efforts of ”la Caixa” and its staff arefocused on serving the financial needsof households and companies efficiently.

As part of this, in 2010 ”la Caixa”merged with Caixa Girona followinga merger by absorption and this willenable considerable operating andcommercial synergies to be achievedwhich are already reflected in the budgetfor the coming year, which foreseesincorporating a substantial number ofthe branches previously owned by CaixaGirona and relocating all its personnel tocover vacancies.



Recurring net operating incomereached EUR 3,323 million, down8.3%.

Due to total income (gross income) ofEUR ,745 million (down .1%), the strictpolicy of containing and streamliningcosts (operating expenses were down4.0%) and the Group’s high commercialcapacity, the efficiency ratio reached43. % and Net Operating Income, whichincludes the profits from the Group’sbusinesses, amounted to EUR 3,323million.

The net operating income shows the”la Caixa” Group’s great capacityto generate high recurring profitsand confirms the Group’s strategy ofmaximising its high potential for efficientand profitable growth.

The considerable profits generated fromrecurring activities afforded significantprovisions of EUR 2, 51 million, of whichEUR 1,454 million were charged to forrecurring NPL and EUR 1,197 million toextraordinary write-downs, and this wasdone without making use of the generalcredit loss provision, which remained atEUR 1,835 million as at the end of 2009.Nevertheless, the NPL ratio of 3.71% isconsiderably lower than the average of

5.81% in the sector and coverage of assetsstood at 70%, 140% with mortgagecollateral.

Recurring profit attributableto the Group stood at EUR 1,507million, (–11.9%), maintaininghigh levels of return (ROEof 9.3%).

“Recurring Profit After Tax” amountedto EUR 1,822 million, down 9.0%. Fora proper interpretation of “IncomeTax”, first of all, it must be taken intoaccount that virtually all the dividendsfrom investees are not taxed to avoiddouble taxation; that, in accordance withaccounting regulations, the profits ofcompanies accounted for using the equitymethod are shown net of tax and, lastly,that contributions to Welfare Projects area deductible expense.

The profit of non-controlling interests ofEUR 315 million relates basically to the2010 profit of the Criteria CaixaCorpGroup attributable to non-controllinginterests. Therefore, the “Recurring ProfitAttributable to the Group”, after taxand non-controlling interests, amountedto EUR 1,507 million (–11.9%), with arecurring ROE (Recurring attributableprofit / Average own funds) of 9.3%.

1.2. Active management of margins, efficiency and high returns (cont.)

3,223 3,3233,622

12.3%�

8.3%

�

08 09 10

RECURRING NET OPERATING INCOME(Millions of euros)

2,317

1,8222,004

13.5%

�

9.0%

�

08 09 10

RECURRING NET PROFIT(Millions of euros)

2,052

1,5071,710

16.7%

�

11.9%

�

08 09 10

RECURRING ATTRIBUTABLE PROFIT(Millions of euros)

“NET OPERATING INCOME TOTALSEUR 3,323 MILLION”



Extraordinary profit:extraordinary income was offsetin full by provisions to bolster thebalance sheet and additionallya provision of EUR 286 millionbefore tax, EUR 200 million net,was recognised for the futuremanagement of the business.

In 2010, a total of EUR 34 million inextraordinary gains, net of tax and non-controlling interests, were recognisedon the sale of stakes in investees, theagreement reached with Global Paymentsto expand its services to commercialoutlets, freeing up provisions made inpast years for the liability adequacy testfor insurance transactions and the sale ofCaixaRenting. This income was allocatedin full to strengthen the balance sheet,mainly to cover credit risk.

In addition, following conservativeprinciples a provision before taxamounting to EUR 28 million (EUR 200million net) was recognised in 2010 forthe future management of the business.

Furthermore, extraordinary gains in2009 rose to EUR 249 million (for thesale of 1% of Telefonica) and this wasoffset in full with provisions for creditlosses additional to those establishedby the regulatory schedules and others.Additionally a provision of EUR 200million net was provisioned to futuremanagement of the business.

The profit attributableto the Group totalledEUR 1,307 million.

Having considered the excellentperformance of the businesses and of the”la Caixa” Group’s high-quality recurringprofits, despite the complex environment,as well as the impact of the extraordinaryprofits, the “Profit Attributable to theGroup” totalled EUR 1,307 million in2010, down 13.4%.

Recurring return on average own funds(excluding extraordinary profit) (ROE)stood at 9.3% in 2010. Taking intoaccount the total profit, the ROE stoodat 8.1%.

Recurring returns on average total assets(ROA), net of cash brokerage, stood at0.7% in 2010.

Also, the low risk exposure of the assetson the ”la Caixa” Group’s balance sheetmeant that the recurring return obtainedin relation to the risk taken (RORWA),which is calculated on the basis of risk-weighted on-balance-sheet assets, wasmuch higher than the ROA, at 1.4% in2010. Taking into account the Group’stotal profit, the ROA and RORWA stoodat 0. % and 1.3%, respectively.

0908 100908 10

10.0%13.0%

8.1%

11.3%

14.8%

9.3%

ROE (Attributable profit/Average own funds)

Recurring business Total

1.6%

09

2.0%

1.4%

08 10

0.8%

09

1.0%0.7%

08 10

ROA (Net profit/Average total assets)RORWA (Net profit/Risk-weighted assets)

ROA RORWARecurring business



Welfare Projects budget for 2011:EUR 500 million

Thinking of people, more thanever before.

In 2010 ”la Caixa” consolidated itscommitment to the needs of society.With this objective, Welfare Projectscontinued to promote programmes toprovide opportunities for people, bypromoting education and training for allkinds of groups, making culture moreeasily available to all and promotingboth scientific breakthroughs and theprotection of the environment.

The Welfare Projects budget for 2011totals EUR 500 million, thereby showing– despite the unfavourable economicclimate – the Institution’s commitment tosociety. Of this budget, 7% is to be usedfor social programmes.

Fighting child poverty, promoting jobsfor disadvantaged groups, supportingactive and healthy ageing for the elderly,encouraging social integration in areaswith a high level of cultural diversity andproviding care for patients with seriousillnesses are currently the projects’ mainpriorities.

1.3. Welfare Projects

Social

Programmes

Environmental and scientific

Culture Educational and research

WELFARE PROJECTS BUDGET 2011(Millions of euros)

335

68 6433

500



1.4. Business segment reporting

Business segment reportingof activity and profits: a basicmanagement tool for the Group

The objective of business segment reportingis to enable internal control, monitoring andmanagement of the ”la Caixa” Group’sactivity and profits. The information isorganised by reference to the various linesof business established on the basis of theGroup’s organisation and structure. Thelines of business are defined taking intoaccount the inherent risks andcharacteristics of each business.

To aid the interpretation of the business andresults of the ”la Caixa” Group’s businesssegments and mainly due to the impactof the evolution of interest rates in themarket on reviews of the loan portfoliosand banking business deposits, in 2010the profits of the business segments will bepresented by including the effects derivedfrom the ALCO (Asset-Liability Committee)management of the risks inherent to eachbusiness (the interest rate risk affecting thebalance sheet, liquidity risk and others).Therefore, in the segment of CorporateActivities, only the ”la Caixa” Group’sextraordinary profits have been included.Furthermore, the segment of the InvesteePortfolio business has been split into twosub-segments: Banking Investee Portfolioand Non-Financial Investee Portfolio.

Thus, in 2010 data from the ”la Caixa”Group’s business segments were recalculatedwith the best information and assumptionsavailable and figures from the previous yearhave been standardised so that year-on-yearcomparisons will be homogenous.

Spanish Banking: This is the ”la Caixa”Group’s core business and includesthe entire banking business (loans andreceivables, customer deposits, providingfinancial services for Group customers,marketing investment funds, insurance andpension plans, treasury activities relatedbusiness...) carried on mainly in Spainthrough the branch network and other

complementary channels. It encompassesthe activity and recurring profits generatedby 10.5 million customers, whether theseare individuals, companies or institutions.It also includes the results of the ALCOmanagement of interest rate and liquidityrisk on the balance sheet, conductedthrough managing issues in the institutionalmarket, and management of own fundsand of investment/financing in theremaining business activities.

The total volume of business managedby this segment at 31 December 2010amounted to EUR 437,443 million, a riseof 5.2% compared to the previous year,thanks to the high commercial capacity ofthe network in a complex business climateof slower growth and high competition inthe banking sector. Customer loans reacheda gross amount of EUR 189,54 millionand customer funds reached EUR 247,897million.

In 2010 the interest income from thisbusiness reflects stringent management ofmargins to offset the transfer of the fall ininterest rates to mortgage payments andamounted to EUR 3,738 million while grossincome amounted to EUR 5,939 million.Net operating income stood at EUR 2,583million, thereby enabling higher recurringprovisions to be recognised which, forthis business, amounted to EUR 1,437million, 3.1% higher than the previous year,without making use of the general creditloss provision. Net profit attributable to theGroup totalled EUR 790 million.

Banking investee portfolio: Thissegment basically includes the recurringprofits of the investee portfolio’sinvestments in international banks, heldthrough Criteria CaixaCorp. The grossincome of this business totalled EUR 159million, up 177% on the previous year. Thisrise was mainly due to income accountedfor using the equity method, which stood atEUR 2 3 million, 71% up on 2009, derivedfrom the performance of these businessesand the increase of the investments made

09

6,412

10.5%�

GROSS INCOME OF SPANISH BANKING(Millions of euros)

10

5,939

7.4%

�

08

5,801

INCOME FROM THE BANKING INvESTEEPORTFOLIO (DIvIDEND INCOME AND THESHARE OF RESULTS OF EQUITY ACCOUNTEDCOMPANIES)(Millions of euros)

55.3%�

10

263

55.3%�

09

170

08

112.3%�80

INCOME FROM THE NON FINANCIAL INvESTEEPORTFOLIO (DIvIDEND INCOME AND THESHARE OF RESULTS OF EQUITY ACCOUNTEDCOMPANIES)(Millions of euros)

10

1,108

5.2%�

08

1,028

09

1,053

2.4%�



in Erste Group Bank, AG, and The Bank ofEast Asia, LTD, in late 2009 and early 2010,which allows significant influence, andthereby including them using the equitymethod in 2010. The net attributable profitof the business stood at EUR 124 million.

Non financial investee portfolio:this segment basically includes therecurring profits of the investee portfolio’sinvestments in utilities, held throughCriteria CaixaCorp. The dividend incomeand the share of results of equity-accountedcompanies amounted to EUR 1,108 million(of which EUR 5 million relate to theshare of results of jointly controlled entitiesand associates accounted for using theequity method), up 5.2% on 2009, as aresult of these investees’ ability to generatehigh profits and distribute recurringdividends. Gross income totalled EUR 47million, 9.8% down on 2009 due to achange in scope (see Chapter 3. Investeeportfolio). The net attributable profit of thebusiness stood at EUR 593 million.

Corporate activities: this segmentincludes revenues, write-downs andextraordinary provisions which, due to their

nature are not possible to allocate to the restof businesses so as not to distort the analysisof its recurring performance in 2010.

Description of the segmentreporting methods andmeasurement bases applied

For the purposes of business segmentreporting of the Group’s activities andprofits, the core business units on whichaccounting and management figures areavailable are taken as a reference. Thesame general principles as those used forthe Group’s management informationare applied and the accounting principlesand measurement bases used are basicallythe same as those used to determine thefinancial statement figures, and there areno mismatched allocations.

The gross income of the Spanish bankingsegment is determined on the basis of thefinancial income and financial expenses inboth the ”la Caixa” Group’s business with10.5 million customers, whether individuals,companies or institutions, and those derivedfrom managing the interest rate risks andliquidity risks of the balance sheet.

The gross income from the investeeportfolio (Banking and Non-financial)includes dividend income and incomefrom the respective equity-accountedinvestments, net of the related borrowingcosts, equal to the opportunity cost ofretaining the investment in the long term.

The operating expenses of each businesssegment include both direct andindirect expenses, which are allocatedin accordance with internal allocationmethods.

The allocation of capital to the businessesis calculated on the basis of therequirements of the New Capital Accord(Basel II), in accordance with the riskstaken by each business unit. These risksinclude credit risk, market risk, operationalrisk, equity risk, fixed asset risk andthe risks relating to the insurancebusiness.

The consolidated income statements ofthe ”la Caixa” Group for 2010 and thechanges with respect to 2009, by businesssegment, and the aggregates of assets ofeach, are as follows:

1.4. Business segment reporting (cont.)

Consolidated income statements of the ”la Caixa” Group - By business segment

SPANISH BANKINGINvESTEE PORTFOLIO

CORPORATEACTIvITIES

”LA CAIxA”GROUP TOTAL

BANKING NON FINANCIAL

(Figures in millions of euros) 2010 CHANGE (%) 2010 CHANGE (%) 2010 CHANGE (%) 2010 2010 CHANGE (%)

Gross income 5,939 (7.4) 159 177.0 647 (9.8) 214 6,959 (3.2)Administrative expenses (2,881) (1.8) (25) (7.0) (32) (73.4) (2,938) (4.7)Depreciation and amortisationcharge (475) 3.5 (2) (7) ( 7.1) (484) 0.6Net operating income 2,583 (14.4) 132 608 5.9 214 3,537 (2.3)Impairment losses on financialassets and other (1,437) 3.1 (17) 139.3 (932) (2,38 ) 32.2

Gains (losses) on disposal of assetsand other (12 ) 36.2 13 402 289Profit before tax 1,020 (33.5) 128 608 5.7 (316) 1,440 (22.9)Tax (131) (59.7) 33 (1 .4) 164 6.4 180 246Profit after tax 889 (26.5) 161 159.3 772 5.9 (136) 1,686 (8.0)Profit attributable to non-controllinginterests 99 (7.3) 37 131.3 179 5.7 64 379 17.3Profit attributable to the Group 790 (28.4) 124 168.8 593 5.9 (200) 1,307 (13.4)

Total assets 264,352 5.5 5,722 19.2 15,650 (4.8) 285,724 5.1



In 2010 the volume of the bankingbusiness (loans and advances tocustomers plus customer funds) stood atEUR 21, 18 million, up 5.2%, to reach afigure of EUR 437,443 million.

Customer funds

The ”la Caixa” Group’s total customerfunds – financial liabilities with customers,insurance contract liabilities (technicalprovisions) and off-balance sheet funds(investment funds, pension funds,managed portfolios and others) – reachedthe figure of EUR 247,897 million at year-end. Compared to 2009, the figure wasconditioned by the complex economicand financial climate and stiff competitionin the banking sector. On balance-sheetcustomer funds reached EUR 211,308million, with a rise of EUR 10 million indemand deposits, a fall of EUR 5, 98

million in term deposits and a rise ofEUR 5,548 million in debt securities andsubordinated liabilities marked by theissue of EUR 3,000 million of subordinateddebt made in the first quarter of 2010.Developments of funds were marked thisyear by the active management of pricesand an effort to protect margins, whichhas had an impact on product structure.On the other hand, institutional issuesrose by EUR 2,980 million and liabilitiesdue to insurance contracts grew to EUR2,033 million. The pension schemes,mainly managed by VidaCaixa, rose by9.0%, while the assets managed by theinvestment funds rose by 10.1%, due tothe high level of funds entering while themarket contracted, the launch of FoncaixaBenvinguda which managed to attractover EUR 1, 00 million being of particularnote.

2. Great commercial capacity: the strength of the banking business2.1. Sustained and balanced growth in banking activity

BANKING BUSINESS vOLUME(Millions of euros)

08 09 10

Customer funds Loans to customers

437,443414,123 415,825

�

6.8%�

0.4%�

5.2%

Total customer funds

(Amounts in millions of euros) 2010 2009

YEAR-ON-YEAR CHANGE

ABSOLUTE IN %

Financial liabilities - Customers 190,334 186,690 3,644 2.0Proprietary products 142,638 142,778 (140) (0.1)

Demand deposits 55, 80 55,670 10 0.0Term deposits 8,4 3 74,161 (5, 98) (7.7)Debt securities and subordinated liabilities 18,495 12,947 5,548 42.9

Repurchase agreements and other accounts 4,925 4,121 804 19.5Institutional issues 42,771 39,791 2,980 7.5Liabilities for insurance contracts 20,974 18,941 2,033 10.7Total customer funds on-balance-sheet 211,308 205,631 5,677 2.8Investment funds 17,017 15,457 1,560 10.1Pension plans 13,060 11,982 1,078 9.0Other managed funds 6,512 4,729 1,783 37.7Total customer funds off-balance-sheet 36,589 32,168 4,421 13.7Total customer funds 247,897 237,799 10,098 4.2

TOTAL CUSTOMER FUNDS(Millions of euros)

08 09 10

247,897237,799237,700

=�

5.1%�

4.2%

Financial liabilitieswith customers

Investment funds

Insurance,pension plansand other

7%

16%

77%

2010 Financial Report of the ”la Caixa” Group2. Great commercial capacity: the strength of the banking business


2.1. Sustained and balanced growth in banking activity (cont.)

Loans and advances to customers

Gross loans and advances to customersreached EUR 189,54 million by theend of 2010, an increase of EUR 11,520million, .5% up on the previous year.As of December 2010, 939,4 3 loanoperations had been approved andgranted, worth a total of EUR 99,491million. The growth in loans to bothindividuals and companies mirrors theGroup’s contribution to the country’seconomic development.

Of particular note among total loans arethe financing transactions for the businesssegment and investment in productivedevelopment in other sectors, in addition

to the public sector. Regarding mortgageloan investments, 2010 showed a slightincrease and these were mainly granted toprimary residence home-buyers.

In addition, the remaining loans forthe private sector rose by 8.7%. Thusinvestment in companies is driving growthwith a 12% increase in loans in 2010through our 83 business centres and thewhole branch network. Of particular notewas the considerable growth in factoringand reverse-factoring products, withmarket shares of 13.3%. In 2010,”la Caixa” made great efforts to completethe range of products and servicesprovided to meet the international needsof companies.

LOANS TO CUSTOMERS, GROSS(Millions of euros)

08 09 10

189,546178,026176,423

�

9.2%�

0.9%�

6.5%

Gross loans and advances to customers by segment

YEAR-ON-YEAR CHANGE

(Figures in millions of euros) 2010 2009 ABSOLUTE IN %

Public sector loans 9,2 9 ,298 2,971 47.2Private sector loans 180,277 171,728 8,549 5.0

Secured loans 123,622 119, 07 4,015 3.4Unsecured loans and other 56,655 52,121 4,534 8.7

Total loans and advances to customers, gross 189,546 178,026 11,520 6.5



The Group’s strong commercialactivity secures high marketshares.

In an adverse economic climate markedby growth rates standing at practicallynil in the market in terms of deposits andlending activity, ”la Caixa” has managedto maintain and even increase its marketshares. According to the latest informationavailable on credit institutions, includingspecialised credit institutions, the”la Caixa” Group obtained market sharesin Spain of 10. % in loans and 10.0% indeposits (excluding insurance and funds).As a whole, the share of business volumestands at 10.4%, exceeding the share ofemployees.

”la Caixa” continued to focus its loanbusiness on financing for individuals andSMEs. In this regard, there was a rise inmarket share in mortgages (which totalled11%) despite the downturn in propertydevelopment, which was accompanied by astrong increase in the share of loans securedby other types of collateral, which rose to10.3%, up 1.0% on 2009. The strategy forpenetration into the business segment hascontinued to reap significant rewards.

With respect to customer funds attracted,although there was hardly any growth in

the market, the offering of high interestrates for fixed-term deposit accounts bysome competitors in the sector led toa change in the structure for attractingcustomers, these accounts gaining groundin comparison to investment funds orpension plans, which were additionallyaffected by the performance of the stockmarkets. Against this background,”la Caixa” maintained practically thesame market share of deposits at 10.0%and achieved a considerable increasein market share of investment funds(10. %), pension plans (1 .2%) andsavings insurance (14.8%), thanks to itshighly active commercial management.

Also, in line with the customer loyaltypolicy, ”la Caixa” continued topromote the MultiEstrella Nomina andMultiEstrella Pension programmes byextending them to the segment of self-employed professionals, and increasedthe advantages of the “Puntos Estrella”loyalty programme to customers whodirectly deposit their salaries. Theprogramme’s success allowed the marketshare of the payroll deposits to grow to15.7% despite the minor fall in 2010in the number of employees registeredfor Social Security purposes. As regardspensioners, a figure of over one millionwas achieved with a market share of13. %.

“HIGH, GROWING MARKET SHARES”

“AMONG THE TOP THREE IN THEMAIN FINANCIAL PRODUCTS”

Market shares and place in the ranking

1st

Latest data available in 2010 SHARE

Payroll deposits 15.7%Pension deposits 13. %Mortgages 11.0%Card turnover 17.7%Merchant business (POS terminals) 21.2%Savings life insurance 14.8%Loans (resident private sector) 10. %Demand deposits 11.8%SNCE ( ) 12.7%

2ndDeposits (resident private sector) 10.0%Pension plans 1 .2%Commercial loans 9.5%

3rd Investment funds 10. %Factoring and Confirming 13.3%

( ) National Electronic Clearing System.

RANKING



A broad customer base thatguarantees growth

The growth of ”la Caixa” Group’s businessis based on its broad base of 10.5 millioncustomers at the close of December 2010.This base constitutes the Group’s mainasset as it provides stability and drivesgrowth in the volume of the business,managed funds and lending, with highmarket shares, all of which must be viewedwithin the context of the high degree ofcompetition in the financial industry.

Leader in Individual Banking

”la Caixa” has the strategic aim ofconsolidating its leadership in IndividualBanking. This strategy is supported by theprofessional, innovative and high-qualityservice which is carried out throughan efficient multi-channel distributionsystem in which the branch, supported bycutting-edge technology, is at the heartof our relationship with the customer. Ourfocus on the customer is complementedby ongoing innovation in products andservices such as mortgages, personalloans, insurance, banking services,payment methods, complementarychannels, etc, which enable ”la Caixa” tomaintain its leadership in retail bankingand achieve considerable and growingmarket shares (see section 2.1. Sustainedand balanced growth in banking activity –High market shares).

Thus, with a penetration of 21.0% inindividual customers according to thestudy conducted by FRS Inmark,”la Caixa” is the leader in individualbanking in Spain, increasing the gapyear by year between it and the secondentity in the ranking, which provesthe Institution’s capacity to achieve itscustomer’s loyalty, allegiance and trust.This leading position is also held in theother two segments which make upIndividual Banking: small entrepreneursand self-employed professionals. Hence,in the small entrepreneur division,

according to the latest data madeavailable by FRS Inmark, ”la Caixa”leads the market with a penetrationshare of 24.2%, and as regards self-employed professionals, the penetrationshare reached 22.0% according to dataprovided by the Social Security, whichrepresents 98 basis points up on theprevious year.

The aim being pursued is to becomethe main financial provider for allour customers and to fully managetheir financial life cycle, and thereforethe commercial activity in 2010 wascharacterised by focusing on attracting,building allegiance with and retaining thealmost ten million customers managedby the Individual Banking business. Thiseffort was rewarded with an increase of90 basis points in the penetration shareas the leading institution for individualcustomers according to a study conductedby FRS Inmark.

Systematic commercial activities weredeployed to attain this objective ofcustomer allegiance. In 2010 five majorcampaigns were launched: mortgages,recurring revenues, investment funds,insurance and pension schemes whichaimed to foster the flow of customers toour branches.

Particularly notable in terms of commercialrevenues in the year was the high level ofrecurring revenues attracted which hasenabled considerable growth of 5 basispoints to be achieved in the market shareof payroll direct deposits and 7 basispoints in the market share of pension directdeposits. Regarding the development ofmanaged funds, of particular note was theeffort to attract investors to our investmentfunds, which has allowed year-on-yeargrowth of the market share amounting to214 basis points, reaching 10. %,and to our individual pension schemes,with a rise of 58 basis points which hasenabled the Institution to achieve a marketshare of 15.78%.

“CONSOLIDATION, THROUGHPERSONALISED ADvICE, OF A BROADBASE OF 10.5 MILLION CUSTOMERS”

2.2. Customer base: the core of the business

“LEADER IN THE INDIvIDUAL CUSTOMERSSEGMENT IN SPAIN WITH 21%

PENETRATION”

07 10

15.6

20.4

16.5

21.0

Penetration in %

Source: FRS Inmark

Penetration main entity Total penetration



2010 was also a year dedicatedto consolidating the MultiEstrellaprogramme (customer loyalty andallegiance programme for customerswith recurring incomes which allowsthem to obtain advantages progressively),by introducing new advantages andincluding self-employed professionals.

Specialised approach to targetcustomer segments

Additionally, the 2007-2010 Strategic Plan,which aims to complement the traditionalleadership of ”la Caixa” in IndividualBanking, contained the express intentionof implementing specialised offers ofvalue for companies and individualswhich would drive positioning in thesemarket segments. At the end of 2009 thisimplementation concluded and 2010 wasthus both the first year that the Institutionwas able to make full use the differentiatedoffers of value for these segments and alsoa year of consolidating the activity for eachnewly founded business.

Personal BankingThe business aimed at individual customerswith over EUR 100,000 in managedfunds was strengthened in ”la Caixa”universal network of branches in 2010by consolidating the management modeland our action protocols and increasingthe number of specialised managers in thisdivision, which at the end of the year stoodat 1,015 professionals. In branches wherethe critical mass of customers does notjustify the presence of a manager who isexclusively dedicated to this business,the branch manager takes over the careof these customers.

This value offer, which is already over ayear old, strengthened its contributionto Group profits; volume of funds plusstocks managed rose to EUR 5 ,100million by the end of the year and this hasconsolidated its position among the twoleading institutions in Spain. At the endof the year, the customer business base

stood at 540,000, which is 15% up onthe previous year.

The Personal Banking service helpscustomers to adequately plan their needsand objectives with suitable productsand services for each stage of theirlives and is characterised by three mainattributes: personalised service, a closerelationship with the customer and atailored service, according to FRS Inmark.

In the year, activity focused on launchingloan and credit products speciallydesigned for this division and variouslending and services campaigns whichallowed ”la Caixa” to consolidate itsbusiness position and image. In thisrespect, it is worth noting that in 2010the volume of structured deposits grewby 21% compared to 2009, savingsinsurance by 13% and the investmentfund balance by 11%, mainly due toissuing new guaranteed funds, therange of elective funds and the excellentresults of the fund campaign which tookplace in the summer months. As regardspensions, special emphasis was focusedon annuities, making use of the know-how and the favourable tax regime for alarge number of our customers.

At year-end, by making use of thepension scheme campaign and seeking tocombine security and future yields in thisrange of products, the PlanCaixa T ndemwas launched, which is an exclusiveproduct particularly aimed at customersfrom this segment.

It is also worthy of mention that in2010 specific innovative advisory toolswere developed to provide customerswith a service in accordance with theirinvestment needs and personal wealth,with the rigour required by the MIFIDstandards. In the last quarter of theyear a special effort was made to trainmanagers in Personal Banking with theaim of consolidating and standardisingthe method and quality of work when

PrivateBanking0.5

BusinessBanking

9

WealthBanking

10

CorporateBanking

200

LEGAL ENTITIESTurnover

INDIVIDUALSAssets under management

Ranks in millions of euros

Individual Banking

SMEBanking

1

Personal Banking 0.1

10.5 million total customers

“SEGMENTING CUSTOMERS ALLOWS US TOCONCENTRATE COMMERCIAL ACTIvITY”

“1,015 TRAINED PROFESSIONALSIN PERSONAL BANKING”



“32 CENTRES AND 357 SPECIALISEDPROFESSIONALS IN PRIvATE BANKING”

2.2. Customer base: the core of the business (cont.)

rendering advisory services to customers.Developing this service will be a priorityfor promoting the segment in the comingyears.

Additionally in 2010, customers benefitedfrom new communication channels, suchas the mobile L nea Abierta, which hasmade this type of banking easier. All thisis the result of the Institution’s focus ontechnological innovation, allowing allthe latest financial data and products toreach customers through the electronicmagazine A Medida, launched last April.

Private BankingThe consolidation of ”la Caixa” PrivateBanking, aimed at customers withover EUR 500,000 of managed privatewealth, led to an increase in funds andstocks managed, which reached EUR35,000 million, representing growth of5% compared to the previous year, and

enabled ”la Caixa” to consolidate itsposition in Private Banking as the secondlargest financial institution in Spain interms of total assets.

2010 saw intense work on developinginnovative tools aimed at strengtheningbusiness customer relations, based onrigorous methodology to guide thecustomer advisory process. The priority ofPrivate Banking is to assist customers toobjectively identify their risk position andto structure their portfolios according to adivision of their savings that correspondswith their objectives as regards security,growth and pensions. This will be thereference framework for ”la Caixa”Private Banking’s advisory model from2011.

It must also be mentioned that, despitethe coverage given by the sector to highyielding deposits in search of liquidity

and customers, ”la Caixa” managedto grow its investment funds with thelaunch of the investment fund campaignin the summer months and the strongcommercial activity of the 333 PrivateBanking managers who, backed bythe 32 specialised centres which formpartof its network of branches, conducthighly qualified strategic management.In the first two quarters, the “FonCaixaBienvenida” IF was the fund that capturedmost assets in Europe, according toLipper FMI. Likewise, efforts in the yearalso focused on offering high yieldsthrough attractive alternative personalised



management products, and the productrange of innovative pension schemes waspromoted, such as the PlanCaixa T ndem,achieving growth of 7% in 2010.

At ”la Caixa” Private Banking, innovationis both an obligation and a commitmentand is driven by initiatives which providetailor-made solutions for customers.This is the positioning goal sought withthe image of the “art of creating value”which became reality last year followingthe agreement signed at the firstmeeting held in Spain betweenthe financial sector and the world offashion. In April, ”la Caixa” PrivateBanking signed an agreement with theAssociation of Fashion Creators in Spain(ACME) which includes an ambitiousaction plan and encompasses holdingexclusive events with customers, aloyalty card and developing CorporateCommunity Responsibility initiativeswhich enable those at risk of socialexclusion to find jobs.

Within Private Banking, customers withover EUR 10 million in managed personalwealth are catered for by the Altiumdivision, with a specific value-addedproposal and access to interdisciplinaryteams who can provide answers to theneeds of quality, sophistication andcommitment required by high net worthcustomers. A volume amounting toEUR 5,273 million is managed in thisdivision, 14% up on 2009, which makesthe Institution one of the main firms ofreference in terms of managing largefortunes in Spain.

The range of commercial products forthis division is based on comprehensiveadvice which revolves around a soundfinancial offer and a clearly differentiatedcompetitive model of service, leveragedby the ”la Caixa” Group’s capacities andresources and by the offering of a specificproduct which responds to the investmentinterests of customers, both for traditionalfinancial assets and for alternative assets.

SME BankingSME Banking is a division created by”la Caixa” to provide service to enterpriseswith a turnover of between EUR 1million and EUR 9 million. In order to giveappropriate support to this model,”la Caixa” managers that have specialisedin SMEs are located at those branches inthe network where there is a sufficientnumber of customers using the servicesof this division. At branches with a lowervolume of companies, the branch managerprovides the service for these customersand thus ”la Caixa” covers the wholespectrum of the business fabric’s needs.

The sole duty of SME managers is tomanage and advise SME customers.They are supported by a multidisciplinarynetwork of experts specialising in certainproducts whose goal is to provide tailor-made solutions for the customers whoneed them. Hence, ”la Caixa” continuesto make headway in its aim to becloser to companies in their day to daybusiness activities, in fields such asmanaging liquid assets, foreign trade andcash-flows.

2010 was the first year of comprehensivebusiness activity, after having designeda new value-added product for SMEs in2009. At the end of December 2010, theteam was made up of 820 specialisedmanagers and backed by the commercialpower provided by the extensive networkof ”la Caixa” branches.

This specialisation of SME services enabledthe business to continue to report organicgrowth despite the current unfavourableeconomic climate. Thus, as of 31December 2010, this business managed197,000 customers, which allowed the”la Caixa” to maintain a penetrationshare of 38. % in the small businessesdivision, according to FRS Inmark.

Commercial efforts this year focusedon achieving a closer relationship withthe customer base, achieving increases

“820 SPECIALISED PROFESSIONALSIN SME BANKING”




“83 COMPANY BANKING CENTRES AND804 SPECIALISED PROFESSIONALS”

in sales in all the SME business priorityindicators such as insurance, managingcollecting payments and payments made,the use of L nea Abierta and payment ofpayrolls and payment collections. Hence,revenues from foreign trade products roseby 1 % and cash-flow hedging by 18%compared to 2009.

The business volume managed by theSME bank at the end of 2010 totalledover EUR 3 ,500 million, of which 74%correspond to asset products. In thesection of specialised finance, of particularnote are the transfer of factoringtransactions, 35% up compared to 2009.

Business BankingIn order to better serve medium and largecompanies (companies with turnovers ofbetween EUR 9 and 200 million), in 2008the Group implemented a differentiatedmanagement model in the provision ofservices to this group. This model, at year-end in 2010 and following the opening ofthree new specialised centresduring theyear, allowed ”la Caixa” to have its ownnetwork of 83 company centres boasting804 highly trained specialists and underdecentralised, flexible management whichforms part of the territorial structure,making the most of synergies with otherdivisions.

As a result of consolidating this model,it is worth noting that the ”la Caixa”Business Bank achieved a notablegrowth in its commercial activityin 2010, despite sluggish marketmovement. Thus, as regards volumedevelopment in the preceding twelvemonths, “CaixaEmpresas” experiencedgrowth that reached 12% in loansunder management, amounting toalmost EUR 17,233 million, and fundsunder management totalled over EUR9,007 million, with year-on-year growthof 14.5%. As regards the number ofcompanies advised, in 2010 the Institution

attracted 3,500 new customers, thusreaching a figure of almost 29,000.

Among the most dynamic products, ofparticular note is factoring with an increaseof 27%, and reverse factoring with anincrease of 44%. This growth contributedto ”la Caixa” consolidating its third placeposition in the ranking of the SpanishFactoring and Reverse Factoring Associationwith a global market share of 13.3%.

This fact corresponds with its aim ofbecoming an international reference forcompanies, providing service in their day-to-day business, and with the objectiveof making companies consider ”la Caixa”as an alternative solution in their businessdecisions.

Great efforts were made to complete therange of products and services to attendthe international needs of companies,and this was well received, as is reflectedin the increase in documentary credits andfinancing for foreign trade.

As regards new products and serviceslaunched in 2010, worthy of mentionwas the adaptation of national andinternational payment services to therequirements of the new payment lawand the creation of advanced B2B servicesfor issuers of bills paid by direct debit.Likewise, the new default payment lawrequired an adaptation of the solutions ofmanaging payments made by customersof the reverse factoring service.

In 2010 a new advanced personalisedtelephone service was launched to caterfor any queries by business customersas to factoring. As regards the cashflow products, the range of productscontinued to grow with new proposals forcommodity hedges, as they are a solutionwhen working with electricity products.New special products were also launchedfor foreign currency hedging operations

for currencies linked to the exchangerate of the dollar and new structures forinterest rates hedges.

Also worthy of mention for 2010 is theCOME customer service unit whichwas set up to provide technical andcommercial support to the Institution’scustomers, particularly companies, aboutforeign trade products.

Additionally, customers’ operating needsare always met through “L nea AbiertaEmpresas”, which allows users to accessa wide range of products and services.It includes over 1,000 functions whichfacilitate the integral management ofall kinds of transactions. In the latestA Metrix survey, ”la Caixa” was againselected as the leading provider in Spainof internet services for companies.

In this division ”la Caixa” is stronglycommitted to technology, not only inthe range of products and services andbusiness operations carried out throughInternet, but also when communicatingwith customers. This year the new digitalmagazine aimed at companies calledInfoCaixaEmpresa Digital was set up, inwhich relevant commercial and financialnews can be found, together with thelatest changes in tax and law and furtheruseful information.



Europe, and The Bank of East Asia inHong ong and China (see chapter 3.1.Criteria CaixaCorp: internationalisationand diversification of revenues). The aim isto provide specialised attention for”la Caixa” customers in these partners’home countries through leadinginstitutions with an extensive networkof branches. Thus, preferential associateagreements have been signed and severalcooperation initiatives have begunamong institutions both in business areasand in support areas. In 2010 strategiccooperation agreements signed earlierwith these investee banking groupscontinued to be developed and in Octobera product was launched in collaborationwith Erste Bank known as “InternationalSolutions for Companies”, which rollsout the model developed previously withBanco BPI.

Corporate BankingCorporate Banking, the divisionspecialising in providing services forbusiness groups with over EUR 200million in annual turnover, has twoCorporate Banking offices, in Madrid andBarcelona, and also manages subsidiariesof Portuguese companies through theInternational Market Company Centre(see the agreement with Banco BPI in thesection on International business). Theteam is made up of 117 professionals whomanage relations with some 570 groupsmade up of almost 4,000 companies.

In 2010, the wide range of productsand excellence in service enabled theobjectives set by the business to beachieved, with a 55% increase overrevenues obtained in 2007 in this divisionof companies.

The volume of assets managed amountsto almost EUR 29,000 million (growth of1 %), of which some EUR 19, 00 millioncorrespond to investment (14%). Also,managed funds totalled EUR 10, 00million, % up on the previous year.

International business”la Caixa” caters for its customers withinternational interests and commercialrelations by means of different types offoreign operations where, according tothe country, it has strategic alliances,operative branches, representative offices,Spanish Desks and associated banks.

As part of strategic banking alliances,”la Caixa”, through Criteria CaixaCorp,holds investments in leading banks intheir respective markets, such as BancoBPI in Portugal, GF Inbursa in Mexico,Erste Group Bank in Austria and Eastern

International Presence

InternationalBranches• Morocco• Poland• Romania

SpanishDesks• Germany• France• Italy• United ingdom

BankingInvestees• Central and Eastern

Europe• Hong ong / China• Mexico• Portugal

RepresentativeOffices• China• Arab Emirates• India• Turkey



”la Caixa” also has Operative Branchesoutside Spain: in Warsaw (Poland),Bucharest (Romania) and Casablanca(Morocco). The branches are aimed atSpanish companies with interests andoperations in these countries. Due totheir particular legal nature they cancarry out all types of banking operations,mainly offering financing and basicbanking services. The offices also focus onattracting the business of local companieswhich have considerable commercialties with Spain. In 2010 the operationsand teams were strengthened in thebranches in Bucharest and Warsaw andthe Casablanca office, which openeda year earlier, was consolidated, afterimplementing a new information systemsplatform developed in-house. Notably,”la Caixa” is the first Spanish institutionto set up an operative office in Morocco.

Additionally, the Representative Officesprovide support for Spanish companieswith projects abroad, and informationis provided about calls for bids andprocedures related thereto. They act as alink with local financial institutions, guideour customers in their business ventures inthe country and are a commercial tool andpillar for business activities which the”la Caixa” network of offices carry out with

companies operating in those countries.The Representative Offices already openare located in China (Beijing and Shanghai),Turkey (Istanbul), Arab Emirates (Dubai) andIndia (Delhi). In addition, offices are in theprocess of being legally set up in Algeria,Singapore and Egypt. Thus, despite theworldwide economic climate, a significantincrease has been achieved in revenues andbusiness volume in the aforementionedcountries.

In the Representative Offices, the SpanishDesks are aimed at Spanish companies,multinational companies with subsidiariesin Spain and also local SMEs in thesecountries which conduct business inSpain. ”la Caixa” has offices like thesein Italy (Milan), Great Britain (London),France (Paris) and Germany (Stuttgartand Frankfurt).

”la Caixa” has a network ofcorrespondent banks through which itchannels its customers’ foreign tradebusiness in the countries where it doesnot operate directly. This is the mostuniversal way to gain access to othercountries and provide coverage forany type of customer of ”la Caixa”.As regards this, bilateral agreementshave been signed with over

Directors of International BranchesAli adiri Morocco (Casablanca)Ra l Carmona Poland (Warsaw)Juan Luis Mart n Romania (Bucharest)

Directors of Representative OfficesMaya helladi Arab Emirates (Dubai)Peter Hansen India (New Delhi)Carlos Morales Turkey (Istanbul)

avier Serrado China (Beijing and Country Manager)Danni Cheng Zhou China (Shanghai)

Spanish DesksBerta Rod Germany (Stuttgart)Joan Francesc Riutort Germany (Frankfurt)Jordi Fuster France (Paris)Claudina Farr Italy (Milan)Álvaro Valera United Kingdom (London)




2,900 international banks to facilitateinternational operations and foreigntrade, both for individuals andcompanies in any country in the world.The vast array of international bankingproducts and services on offer includetransfers, cheques, remittances, bankguarantees, pledges, letters of credit andso on. Finally, worthy of mention is theinternational cash management servicewhich ”la Caixa” offers to its businesscustomers, with over 40 agreementswith banks all over the world.

Organisations and multilateral bodiesIn 2010, agreements were strengthenedwith multilateral developmentorganisations and Spanish official bodiesto increase business and the customerbase. With the collaboration of the whole”la Caixa” Group, this model continuedto consolidate a model in the marketbased on knowledge and proactiveactions in addition to striking pioneering,unique deals and providing support forthe expansion abroad of companies andcustomers.

Several deals were struck with theEuropean Investment Bank (EIB),including, notably, the signing of aloan worth EUR 300 million to financeprojects and foster business and socialdevelopment for SMEs from a sustainableviewpoint; corporate bank guaranteeswere signed to finance several projectsand the Institution also participated inissues made by the EIB.

In addition ”la Caixa” will finance thenew buildings and equipment ofthe Santa Creu i Sant Pau hospital, witha loan granted to it by the Council ofEurope Development Bank (CEB). This isa pioneering transaction as, thanks to theadvice, structuring and participation of”la Caixa”, it is the first time these twooldest European multilateral institutions,the CEB and EIB, have jointly financeda project. In addition, ”la Caixa” formspart of the working group developinginstruments to finance the MediterraneanSolar Plan as part of the Union for theMediterranean (UPM) headquartered inBarcelona.



”la Caixa” is the leading institutionin number of branches.

The ”la Caixa” Group’s banking businessstrategy is based on an extensivedistribution system in the form of a wide-reaching branch network, which is thebasic tool for forging relationships andmaintaining close ties with customers,reinforced by the development ofadditional communication channels (seesection 2.4. Multi-channel management:permanent relationship with customers).

At the end of 2010, ”la Caixa” had 5,409branches, 5,39 of which were located inSpain. ”la Caixa” is the leadingplayer in Catalonia and the BalearicIslands, its traditional area of activity,where it has 2,097 branches, and is also

one of the best established institutions inother autonomous communities such asMadrid, Andalusia and Valencia. With itsextensive network, ”la Caixa” continuesto be the Spanish financial industry leaderin terms of number of branches with amarket share of 12. %.

Additionally, the network of ”la Caixa”branches has specialised centres respondingto the needs of business customers incorporate banking, business banking andprivate banking (see chapter 2.2. Customerbase: the core of the business).

Outside Spain, it has three operatingbranches (one in Warsaw, one inBucharest and another in Casablanca) andten representative offices and Spanishdesks (see section 2.2. Customer base:the core of the business).

“GREAT FLExIBILITY OF THE NETWORKALLOWING A PERSONALISED QUALITY

ADvISORY SERvICE”

2.3. Commercial network and human resources: cornerstones

5,4093,312

2,097

5,3263,411

1,915

NUMBER OF ”LA CAIxA” BRANCHES

08 09 10

5,5303,489

2,041

Catalonia andBalearic Islands

Rest ofSpain

DISTRIBUTION ACCORDING TO TYPE OFBRANCH NETWORK

Total branches 5,409

Universal networkCorporate BankingBusiness BankingPrivate Banking

Branches in SpainInternational branches

5,2792

8332

5,39613

19778

264

86

656

724

49

131

92

28

18355

464

1,851

246

15542

131

GEOGRAPHIC DISTRIBUTION OF OFFICENETWORK IN SPAIN



The ”la Caixa” Group’s workforcenumbered 28,651 employees in2010.

At the end of 2010 the challenges setby the 2007-2010 Strategic Plan weresuccessfully met as regards managinghuman resources, among which thefollowing are particularly worthy ofmention: identifying and managinginternal talent, creating professionalcareer development programmesand implementing conciliation andequality policies. In this respect, inacknowledgement of our application ofthese policies, the M sfamilia Foundationawarded the Institution the EFRCertification (Company respecting FamilyResponsibility), which marks one morestep in the Institution’s Equality Plan.

Additionally, as regards 2010, of particularnote is the incorporation of humanresources from Caixa Girona, whichwas conducted swiftly and satisfactorilyfollowing the principles of efficiency andconservation of existing talent.

As for the development of professionalcareers, this has been combined with theneed for internal rotation and mobility,while always guaranteeing transparency,objectivity and equal opportunities.In 2010, over 2,800 job vacancieswere advertised internally for in-housecandidates. However, the vacancies thatcould not be filled by current employeeswere advertised through the ”la Caixa”website.

As regards territorial expansion,”la Caixa” continued to increase itspresence abroad, applying the sameprinciples when recruiting employees ininternational offices in 2010.

With respect to remunerationmanagement, the most noteworthyinitiatives carried out were: consolidatingthe variable remuneration scheme in thecommercial network; and defining theduties of the centralalised services areas,establishing a framework for retributionstructures, having also worked on ananalysis of how to adapt these to theEuropean directives as regards retributionin the sector approved in October 2010.

The recruiting procedures for managerialpositions and the individual careerdevelopment plans took into accountthe considerations put forwardby the executive talent managementprogramme, which was applied bothto the commercial network and tocentralised services, recruiting over 800people.

As regards professional development,a general appraisal of talent was alsoconducted, identifying areas of skillsimprovement and making organising aprofessional development plan for eachcandidate easier.

As regards training programmes, worthyof mention is that concerning commercialleadership, which most branch managershave taken part in, with the aim offacilitating change management andaligning the commercial proactivity in thebranches with the strategic strategies laiddown by ”la Caixa”. Regarding the above,the e-learning platform named Virtaulais becoming an interactive learningcommunity with the collaboration of ouremployees, who share their knowledgeand experience, and the aim of which isto take advantage of the effectivenessof new technologies to boost theInstitution’s talent.

“QUALIFIED STAFF COMMITTEDTO SERvING”

“BEST FINANCIAL COMPANY TO WORKFOR IN SPAIN”

(Source: MercoPersonas 2010)

EMPLOYEES 2010 2009 Yr-on-yrchange

”la Caixa” 25,288 24,944 344“la Caixa” Group 28,651 27,505 1,146



2.4. Multi-channel management: permanent relationship with customers

“8,181 SELF-SERvICE TERMINALSOF WHICH 6,985 PROvIDE ADvANCE

SALES OF TICKETS”

The multi-channel managementof ”la Caixa”: Shall we talk?

The strategy of ”la Caixa” is based onproviding customer satisfaction andoffering all the services, technologicaladvances and information that customersneed to enable them manage theirfinances effectively. The multi-channelmanagement of ”la Caixa” takesadvantage of new technologies to bringquality banking services closer to all usersand make them more accessible throughinnovative services available anywhere,any time. This permits a constant andhigh-quality relationship with customersand fosters their loyalty through thecreation of new contents, designs andimages which help to increase theemotional bond between customers and”la Caixa”.

The leading networkof self-service terminals

”la Caixa” has 8,181 self-serviceterminals, with functionalities available in15 languages. This makes it the institutionwith the most extensive network of self-service terminals in the Spanish financialsystem, with a market share of 13.0%,and the second largest in Europe, therebyreflecting its strong commitment to, andvocation for, customer service.

The most widely requested transactionswere cash withdrawals and savingspassbook updates, which accountedfor 71% of the main ATM transactions.The second most common transaction,which accounted for 15.4% of the total,was checking the balance and next,with 5. %, was paying in cash, eitherin banknotes or using an envelope.Currently, 7, 22 ATMs (95% of the totalnetwork) are equipped for depositingcash.

In 2010, the ”la Caixa” ATM networkaccounted for 527 million operations.Over 4 million customers use them

habitually and therefore considerableefforts have been made to furtheroptimise ease of use, security andaccessibility for all our customers,regardless of their physical capabilities.The ATMs of ”la Caixa” are adaptedto Braille and some are equipped withvoice-operated software for the visuallyimpaired, with 3,312 ATMs currentlyequipped with this technology. The”la Caixa” ATMs also provide variousfeatures to make them more accessibleand user-friendly, such as the “CaixaF cil”functionality, which has a simpler menuand larger buttons, and “My UsualTransactions”, which has a screen menuthat the customer can personalise.Another tool to help the customer is thesearch engine, which is used both forthe functionalities of the ATM itselfand for locating nearby branches andATMs in a highly visual manner usingGoogle Maps. As for people with hearingdisabilities, the ATMs include helpfulvideos where they can consult howto use the most commonly-requestedATM operations: cash withdrawalsand checking account balances andstatements.

In line with the multi-channel strategyof ”la Caixa”, ATMs use the technologyat their disposal to make themselvesanother sales channel, and thus throughthe terminals customers may contractother services provided by ”la Caixa”such as L nea Abierta, CaixaM vil, loanapplications or the Cybercard. Additionally,,985 terminals sell tickets, giving

customers access to the widest range ofentertainment on offer in Spain (includingcinema, theatre, music, and sport).

www.laCaixa.es is the leader inInternet banking

The ”la Caixa” website consolidatedits leadership in online banking servicesin Spain, with a market share of activeinternet users (December 2010) of31.4%, measured by Nielsen Net Ratings.

08 09 10

5,544

6,6206,020

LÍNEA ABIERTA CUSTOMERS(Thousands)

“31.4% MARKET SHARE IN ONLINEBANKING”

Source: Nielsen Net Ratings(December 2010)



Some highlights of developments in 2010include the Criteria CaixaCorp websiteand the portal of other Group companiesplus the new Corporate Responsibilitywebsite where ”la Caixa” divulges andpromotes adopting corporate responsibilityin its companies. In 2010 work continuedon universalising its second-generationwebsite based on specific communities andfostering interaction among users. ThusOnline Community’ was born, which isthe first private network for self-employedprofessionals and SMEs, a gateway forbusinesses which facilitates collaborationand interaction for customers of”la Caixa”, who have a space and meetingpoint where they can create new businessopportunities. ”la Caixa” has activelyjoined social media, occupying an areaon social platforms to disseminate itsidentity and publishing contents on globalplatforms with the highest audiences.

The internet channel optimises its potentialas a channel through which to sell theInstitution’s products and services byincorporating new functionalities such assearch engines, online catalogues covering

deposits, investment plans, pensionschemes and insurance, or the investmentfund comparer. Online accounts werepromoted, and the MultiEstrella spacewas extended to include self-employedprofessionals.

”la Caixa” continued to offer newmultimedia initiatives, which means onestep further for the Institution towards thewebsite 2.0. In 2010, new examples ofmultimedia initiatives were created such asthe new service, “My Usual Transactions”,which allows customers to tailor their useof L nea Abierta, modifying it according totheir particular needs and interests.

As regards company services, the CountrySolutions Space facilitated commercialrelations for companies in Portugal and thiswas extended, by means of an agreementsigned between ”la Caixa” and ErsteGroup Bank, to eight countries in Centraland Eastern Europe (Austria, the CzechRepublic, Slovakia, Hungary, Croatia,Serbia, Romania and Ukraine). The greatacceptance of the service was mirrored bythe rise in the absorption rate of the main

”la Caixa” was once again rated theleading Institution in terms of quality forall internet services (Individual Banking,Personal Banking, Business Banking,Professional and Business Banking, OnlineBroker and Foreign Trade), according to thelatest study by A Metrix.

The internet portal allows access toL nea Abierta, the online managementtool for financial products, available in19 languages with over 850 differentfunctionalities. This service currently hasover . million contract customers, ofwhom 3.3 million used L nea Abierta in2010, making 1,730 million transactions.

The website provides corporateinformation regarding the Group and actsas a showcase for promoting the newproducts offered by ”la Caixa”, in additionto being a tool for providing financialknowledge. It is also the access point for”la Caixa” Welfare Projects, the investmentholding company Criteria CaixaCorp andnon-financial services, such as leisureservices (ServiCaixa.com).



“2010: 1.8 MILLION CUSTOMERS USEOUR MOBILE PHONE SERvICES”

2.4. Multi-channel management: permanent relationship with customers (cont.)

functionalities, notably an absorption of9 % in transfer of invoice files, 73% inthe case of payment files, 75% for banktransfers and 95% for the collection of billsof exchange.

Mobile phone services:CaixaMóvil

CaixaM vil encompasses all theproducts and services that theInstitution has been offering by mobilephone for over nine years. ”la Caixa”is the leading financial institution inmobile phone financial services both interms of the range of services availableand the 1.8 million customers who usethese services. It is also considered theleader in mobile banking service quality,according to A Metrix.

In 2010 L nea Abierta M vil continuedto improve the design and navigation ofthe wide range of functionalities andservices CaixaM vil places at thedisposal of its customers. Invoice

payments were incorporated into theservices, together with confirmation ofthe draft copy of income tax returns,payments made to pension schemes andnew options for cards, such as usingmobile phones to activate or block theiruse. CaixaM vil now has mobile portalsfor Criteria CaixaCorp, MicroBank,Servihabitat I, L A, WelfareProgrammes with iCaixaForum and alsoapplications such as Private Banking orthe MultiEstrella portal. New mobilesystems were also deployed such as thenew Apple iPad, and it was the firstfinancial institution with its applicationsinvolved in the international launchof the new Windows Phone operatingsystem. ”la Caixa” was the first bankinginstitution to have a store (“CaixaM vilStore”) selling mobile phone servicesand applications which can bedownloaded easily by customers, andthat acts to unify access to ”la Caixa”mobile phone services, with over 1million mobile phone applicationsdownloaded in 2010.

2010 was also marked by thedevelopment of new technologicalinnovation projects which seek touniversalise the mobile phone as a salesand payment channel. Thus, as regardsticket sales, the M-ticketing applicationwas created, which allows customersto use the ticket purchased withoutneeding to print it onto paper.

Jointly with Movistar and Visa, the firstexperiment in Spain was conductedas regards payments made via mobilephones with NFC technology (seesection 2. .1. Technological Innovation).

Further developments includedincorporating into the iPhone thefunction for paying invoices byscanning bar codes, which enables



“QUALITY ONLINE BANKING FOR ALL”

“2010: 9.7 MILLION ADvANCED SALES”funds to be transferred from onemobile phone to another. CaixaM vilalso uses virtual reality technology,and one example can be found onthe Welfare Projects portal throughwhich users may visit the exhibitionsat CosmoCaixa through their mobilephones. Augmented reality was alsoincorporated into Android and iPadterminals, which enables customers tofind ATMs and branches. In addition,thanks to the CaixaM vil alarm service,customers may receive information viaSMS or e-mail regarding their accounts,transactions made, card payments oroperations made through self-serviceterminals. The Alert Service alsoprovides exclusive alerts for companiessuch as cash, card and file status reportssent by SMS to various recipients basedon the type of alert. In 2010, over 35million messages were sent to”la Caixa” customer mobile phones.

Ticket sales: ServiCaixa.com

Through ServiCaixa.com, ”la Caixa” leadsthe Spanish market in ticket sales, bothin terms of volume and in the range ofproducts. In 2010, 9.7 million advanceticket sales were made through electronicchannels and the number of membersof Club ServiCaixa reached 1.8 million,thereby consolidating its position as one ofthe main cultural clubs in the country.

In 2010 ServiCaixa.com launchedM-ticketing, the new “mobile ticket”application which allows customers touse their own mobile phones as a ticketby showing it on entering the venue. Thisalso allows tickets to be printed at home,making it unnecessary to pick up thetickets at the venue. Also on the ServiCaixawebsite, customers can find a wide rangeof consumer products and access toattractive commercial offers made by”la Caixa” Group companies. In line withits online strategy, ServiCaixa joined social

networks, being present in such platformsas Facebook, Twitter and Tuenti.

Accessible multi-channelmanagement

”la Caixa” Group’s strong socialcommitment and its vocation to serve andwork in the general interest is shown in itsefforts to make access to its services easierfor all user groups, through an activepolicy aimed at removing architectural,technological and communicationbarriers.

”la Caixa” aims to provide quality bankingto everyone and, for this reason, it hasimplemented A level international webaccessibility standards (under theWeb Accessibility Initiative or WAI) forL nea Abierta, its online banking service.

”la Caixa” is committed to ensuringthat its website and L nea Abiertaservice are accessible, regardless of thetype of hardware, software or networkinfrastructure used, or the language,culture, geographical location or skills ofits users. To this end, the WCAG 1.0, AAlevel accessibility guidelines have alreadybeen applied to a number of channels onthe website.

Furthermore, ”la Caixa” also participatesin the INREDIS project (INterfaces forREIations between environment andpeople with DISabilities). This is anaccessibility initiative led by Technosite,the technological company belongingto ONCE (the Spanish association forthe blind). The aim of the project, from2007 to 2010, was to develop basictechnologies to create communicationand interaction channels between peoplewith some kind of disability and theirenvironment, thereby helping to make asubstantial improvement to their qualityof life.



With 10. 1 million cards in circulation, ofwhich 10.34 million were issued by”la Caixa” and 0.27 million by Finconsum,the ”la Caixa” Group is the top card issuerin the Spanish market. In 2010, the”la Caixa” Group cards generated atotal of 593 million transactions,with turnover of retail sales and cashwithdrawals from ATMs totalling EUR34,958 million, of which EUR 34,734million related to ”la Caixa”, 4% up onthe previous year. If the volume of businessgenerated through cards from otherissuers used in retail stores and ATMs isadded, the ”la Caixa” Group managesEUR 1, 43 every second.

”la Caixa” is the top-ranking financialinstitution in terms of bank card turnover,with a market share of 17.7%, or 17.8%including the Group. The market share of”la Caixa” in terms of bank card turnoverthrough its customer retail stores stood at21.2%, making it the leader in this area.Accordingly, ”la Caixa” customers haveaccess to the widest range of paymentmethods available in Spain, including allthe card types and international brands.

Of the 10. 1 million cards in circulationat the end of 2010, 3 .9% were creditcards (4.2% of which were revolvingcredit cards), 53.7% were debitcards and the remaining 9.4% wereprivate and electronic purse cards. Thenumber of point of sale (POS) terminals,in which ”la Caixa” is also the marketleader, had reached 1 9,9 at the endof 2010, all of which are equipped fortransactions with smart cards.

During the year the current cards werereplaced by smart cards with the aim of

minimising the risk of fraud due to lost orstolen cards, since entering a PIN numbersubstitutes the need to sign.

Card holders can now contract insurancewhich covers the pending amount left onthe card in the event of death or absoluteand permanent disability, or the monthlyamount in the event of unemployment ortemporary disability.

As regards the incentive campaigns topromote the use of cards, and thanks tothe Premi loyalty programme, this yearalmost three million personalised offerswere sent to customers with ”la Caixa”cards, via purchase receipts, letters, L neaAbierta and messages to mobile phones,with prizes of purchases in supermarkets,extra Puntos Estrella points, etc.

With the aim of adapting ourselves tothe needs of each customer, in 2010 thecredit limit was raised on cards belongingto 280,950 customers, bearing in mind ananalysis of appropriate risk.

In the area of Corporate Responsibility,”la Caixa” is committed to protecting theenvironment, and this year over 1 millionfewer statements on paper were sent tocustomers.

Regarding retail business, ”la Caixa”reached an agreement with the Americancompany Global Payments, internationalleader in payment processing, to createComercia, which will provide paymentmanagement services to retail businesses,encouraging innovation and servicequality and providing more services to ourcustomers with business beyond Europe.

“”LA CAIxA”, LEADER IN BILLINGFOR BANK CARDS WITH MARKET

SHARE OF 17.7%”

2.5. Payment systems: a distinctive offering

08 09 10

Cards issued Transactions

556 560 593

”LA CAIxA” GROUP CARDS(Millions)

10.3 10.610.6

08 09 10

34,260 34,73433,41016,476 16,226 16,601

17,784 17,184 18,134

Turnover inretail stores

Turnover inself-serviceterminals

”LA CAIxA” TURNOvER vOLUME(Millions of euros)

POINT OF SALE (POS) TERMINALS(Units)

08 09 10

171,631 169,966167,993

Market share retail turnover 2010: 21.2%



2.6. Innovation in customer services2.6.1. Technological innovation as a priority for improving customer care and service

Línea Abierta

Innovation is a constant objective for”la Caixa” in all the areas where itacts, and is becoming an essential toolin its multi-channel relationship withits customers. Hence we can offerimprovements in the new services andproducts which are the result of intensiveuse of the technology within our reach.Customers can access products throughthe L nea Abierta channel, such as “MyFinances”, which enables customers tomanage their household finances. “MyUsual Transactions” was introduced in2010 and now provides newer, easier,personalised ways for customers to seetheir statements and transactions ofinterest to them. Another example isthe viewing through L nea Abierta ofcheques paid in through the ATMs andprovides customers with information both

on operations in their accounts, relatingto accounting entries, and on specificdeposit transactions.

”la Caixa” has continued its initiative,which began last year, of involvingcustomers in creating and improving theservices and products of L nea Abierta.Users have tried new functionalities in the“beta” version and have given us theiropinion. They have also rated existingfunctionalities through “PermanentRating” surveys and participate activelythrough their suggestions on how toimprove our services.

This line of interaction with its users led”la Caixa” to create an Online Communityin 2010, the first private network forself-employed professionals and SMEs.Having been created as a businessbooster which facilitates cooperation andinteraction, customers of ”la Caixa” have

a unique space where they can createnew business initiatives and where theycan find interlocutors with similar interestsand needs. Furthermore, ”la Caixa”joined social platforms to actively spreadinformation about the Institution.

The ”la Caixa” portal www.lacaixa.esincludes several catalogues with webfunctions which simulate the turningof a real page, and links to the relatedproduct descriptions have been added.Examples include the Puntos Estrellacatalogue or the Corporate ResponsibilityReport. Search engines have also beenincluded and online catalogues fordeposit products, investment fundsand schemes and comparative charts offunds that provide customers with theinformation they need to make decisionson investments or savings. New functionswere incorporated for Private Bankingand Personal Banking, such as access to



2.6.1. Technological innovation as a priority for improving customer care and service (cont.)

exclusive magazines for these groups inFlash and options for tailoring their usefor these divisions on L nea Abierta.

In 2010 “CaixaM vil Store”, theshowcase for mobile telephoneapplications and the Institution’s mobilechannel, continued to incorporate thevarious portals belonging to Groupcompanies (Stock Exchange, L APortal, Private Banking, etc.). As regardsenvironmental responsibility, and withinthe “ecoCaixa” initiative, L nea Abiertaoffered its customers a wide range oftechnology which enables them to consultbank correspondence totally onlinewithout the need to receive it on paper,through the “Service of PersonalisedCorrespondence”, which already hasover 3 million customers. In addition,“ecoCaixa” offers its customers variousoptions regarding optimising resourcesand protecting the environment throughthe ”la Caixa” Welfare Projects.

ATMs

In 2010 the ATM area focused its effortson incorporating EMV technologyinto pay cards, enabling a change offunctionality profiles in stores to be madefor this kind of plastic cards. For sight-impaired people, when they introducetheir card or bank book, the ATMs at”la Caixa” offer a specific easy-to-readscreen. In 2010, 3,312 ATMs alreadyfeatured videos providing assistancein sign language, explaining the mostcommon uses: “cash withdrawal” and“consulting balance and transactions”.

Mobile phones

”la Caixa” has been a pioneer amongbanks in launching a store for mobilephone services and applications called“CaixaM vil Store”, where customers candownload them easily. The ”la Caixa”applications are available from theapplication “stores” of the leadingmanufacturers and operators.

Applications have been created foriPhone, iPad, Blackberry, Android andWindows Phone, with a branch locatorthat finds the nearest branches usingthe device’s GPS and displays themusing Google Maps; in the case ofAndroid, iPhone and iPad, an augmentedfunctionality has been added which, inthis case, shows information (address,telephone number, ATMs, etc.) onbranches using the device’s camera.Further experiments have featured theuse of virtual reality on the mobile phonewhich enables the phone to present theWelfare Programme exhibitions and act asa guide for the user.

In 2010 the first experiment wasconducted in Spain featuring payment bymobile using NFC technology. This pilotscheme involved 500 retail outlets andover 1,500 customers and was warmlywelcomed by the public. 70% of the retailoutlets involved received purchases madeby mobile phones and 80% of customersused their mobile phones to pay. 70%of participants rated the experiment aspositive, with a score of over 8 pointsout of 10. The ease, speed and safety ofthe system were especially rated highly.This positive appraisal has resulted inthe companies promoting the systemdeciding to maintain the infrastructure inthe outlets indefinitely.

A system for paying bills with a bar-codescanner and for transferring funds frommobile to mobile was also implementedin the iPhone. Finally, as regards ticketsales, the M-ticketing application wascreated which enables customers to usethe ticket they have purchased withoutthe need to print it onto paper, since thecustomer’s terminal becomes the ticket.

CaixaProtect

To consolidate its leadership in the areaof electronic channels, ”la Caixa” hascontinued to give priority to ongoinginnovation by offering CaixaProtect,



a service that automatically providestotal security in the event of irregulartransactions using cards, the L neaAbierta service or ATMs and guaranteescustomers full protection, thereby givingthem peace of mind and confidence.The CaixaProtect service also activatesa system of mobile phone alerts whentransactions involving large amounts arecarried out, whether these be purchases,cash withdrawals, or card transactionsand transfers using L nea Abierta or ATMs.In 2010, almost 9 million alerts were sent.

Cards

A new, faster, more convenient methodof payment by card was developed forcustomers and retail outlets. This is asmart card with a chip and contactlesstechnology, with which you can makepurchases by holding it close to thePOS terminal and entering the PIN (for

operations over 20 euros). “la Caixa” hasactivated over 3,000 of these smart cards,which may already be used in the town ofSitges (Barcelona).

Retail outlets

Within the area of retail outlets, a newservice has been developed aimed mainlyat self-employed professionals who selldoor-to-door, and consists of enablingpayments to be made via their mobiletelephones through an effective, easyand safe system. This involves customerspaying with their debit or credit cards viathe vendor’s mobile telephone, directlytransferring the amount of the sale to theretail outlet account. There are currentlysome 200 terminals of this type in use.”la Caixa” received one of the prizesawarded by the Actualidad Económicamagazine each year for the 100 best ideasfor this innovative system.



2.6.2. Innovation and leadership in information systems

”la Caixa” Group, as regardstechnological development, continued towork to improve its information systemsin 2010, setting the bases to consolidatethe future model of managing theGroup’s IT technologies. In addition,advances were made in aligning costsand consumption of technical resourcesaccording to market standards,developing applications in responseto the growing business needs andsimplifying technological infrastructures.Currently work is being carried outto extend the ”la Caixa” model foroptimising IT of Computer Services to allthe Group companies, mainly aimed atimproving efficiency and effectiveness.

Another feature worth noting wasthe decisive drive this year to build thenew state-of-the-art Data ProcessingCentre. This project, which willhouse the Institution’s IT servers anddata, will add to the technologicalleadership of ”la Caixa” by providinginnovative and cutting-edge facilitiesas regards data processing, energy andtelecommunications infrastructures.

Construction of the first centre is goingaccording to plan and it is scheduled tostart operating in 2011.

As regards data systems, work hasgone ahead on merging the Institutionwith Caixa Girona, providing thenecessary technical resources at eachbranch originally from Caixa Gironaand integrating the functionalities andparticular business features of that entityinto the ”la Caixa” systems swiftly andefficiently.

As regards the branches, in 2010 workon the Financial Terminal continued,adding new features and improvingsome existing ones, and the process ofmigrating towards a platform with amore advanced technological version isunderway. As part of defining the branchof the future, work was also carriedout to integrate new technologiesapplied to the everyday work atthe branches, such as integratedcommunications and making it easierto share documents online.



Continuing with the aim of improvingefficiency and joined with itsgrowing environmental awareness,in 2010 particular emphasis wasplaced on the energy efficiency of thecomputers both in branches and at theheadquarters, and on other measuresat the data processing centers, whichachieved a saving ofapproximately14% in electricity thanks to lightingactivated by sensors and optimising airconditioning in rooms.

In addition, in the area of ”la Caixa”data processing services, the keycontribution was to make technologicalinnovation a cornerstone in the policy ofbringing the multi-channel system closerto customers with an array of innovatingvalue proposals (see the previouschapter: 2. .1. Technological innovationas a priority for improving customer careand service).

Continuing on the subject of innovativeinitiatives, in 2010 ”la Caixa”, incollaboration with BDigital, embarkedon an innovation project to developstate-of-the-art banking information

systems which allow access to businessinformation by means of questionsphrased in natural language. Thisproposal is part of the growing interestof the Institution in participating inresearch projects with technologicalcentres which place it in a leadingposition in terms of new technologies.

Another fundamental aspect whichevolves with technological leadershipand is vitally important for theInstitution, is related to controllinginformation security. Thus, ”la Caixa”continued to work to minimise risksof data leaks by establishing newsafeguards to protect customer andbusiness data, continually checking thatthe control measures were workingcorrectly and spreading good securitypractices to all employees. In addition,complying with the requirement toadapt in a flexible manner to an ever-changing environment, certificationprogrammes based on internationalstandards were adopted to guaranteecompliance with the regulations andensure quality in security management.



There are currently over 850 brancheswhich have been adapted to the “newmodel”, where our customers can enjoyall the advantages provided by thischange.

The use of glass as the main material forseparating areas provides pleasant brightsurroundings, making our customers feelcomfortable. The transactions and quickcash area is also sufficiently set apart andidentifiable to make it easier to use.

In 2010 the work carried out to modernisethe facilities focused mainly on theadaptation of 40 branches, based on thespace layout concepts and criteria appliedat the “new model” branches introducedin recent years, which represented agenuine revolution in bank branchdesign, affording comfort and privacyfor business meetings with customers.As with the new design branches, theseadapted branches give priority to areas for

individualised attention, thereby fosteringa personalised business relationship whichenables advisory services to be tailoredto each customer. The result of thisadaptation process has been welcomedand highly appraised by customers.

In addition, in 2010 business and privatebanking branches were inauguratedwhich, as in previous years, followed asimilar design pattern to the general bankbranches in terms of materials used andcomfort for our customers, but were alsoadapted to the particular characteristics ofthese customer groups.

In addition to the innovation in spacelayout and the use of cutting-edgetechnologies, in 2010 there was a notableimprovement in the energy efficiency atbranches and offices without negativelyaffecting comfort, thus aiding advancesin the application of our environmentalsustainability policy.

“THREE COMPONENTS: INDIvIDUALISEDSPACES, QUICK CASH AREA AND SELF-

SERvICE AREAS”

“SPACES DESIGNED TO ENCOURAGEFACE-TO-FACE MEETINGS”

2.6.3. Branches and services designed for personalised attention



Service excellence

Service excellence has always formedpart of the identity of ”la Caixa”.Exceeding its customers’ expectationsis the only way to continue deservingtheir trust. Independent market surveysfrequently confirm ”la Caixa” as oneof the institutions with the highestquality of service. According to FRSInmark’s financial behaviour study,”la Caixa” is the institution with thehighest recommendation rate, whichindicates how strongly quality isassociated with the Institution. Also,with regard to the multi-channel service,according to the data provided byA Metrix, the L nea Abierta service of”la Caixa” is the leader in terms of qualityin all the categories measured.

Customer satisfaction surveys

In 2010 ”la Caixa” continued to monitoron an ongoing basis its customers’assessment of the service they receive.This programme of surveys is used toobtain a service quality indicator forindividual customers and businesses.275,557 surveys were carried out in 2010and were used to obtain a satisfactionindicator for each ”la Caixa” branch. Thissystem of surveys enables each branch tomonitor customer satisfaction and applyspecific measures to provide continuousimprovements.

Customer Service Office

”la Caixa” provides its customers withmultiple forms of communication: lettersto the President and CEO, the freecustomer care telephone service and thewebsite, all of which are accessible from

the branches. All the complaints receivedthrough any of the above channels werehandled by the people in charge in theterritorial network, at head office or atthe Group’s subsidiaries. In 2010, 20, 32complaints were received. A total of2,201 complaints were processed by thecustomer care/customer ombudsmanservice in 2010, of which 436 wereresolved in favour of the claimant, 785in favour of the Institution, 665 wereclassified as inadmissible, 10 claimswere dropped by customers and 305 havenot yet been resolved.

”la Caixa” regards each complaint asan opportunity to improve internalprocedures and the services it provides.Thanks to the thorough way in which ithandles claims, ”la Caixa” is regularlyone of the institutions with the fewestnumber of complaints in relation to thesize of its business, as highlighted bythe Bank of Spain’s Complaints Service.

Branch satisfaction with internalservices

To maintain and improve the highstandard of service that ”la Caixa” offersits customers, it is first necessary toensure that employees are fully satisfiedwith the service they receive from theirinternal suppliers. To this end, periodicsurveys of branches provide informationabout the employees’ level of satisfactionwith the internal services they receive.

uality levels are also monitored on thebasis of objective data, using indicatorsobtained by measuring various activityparameters e.g. the time taken to resolvebreakdowns and downtime for certainservices.

2.7. Quality and customer care: the groundwork for the future

2010 FINANCIAL BEHAvIOUR STUDYRating of perceived quality(Scale of 0 to 10)

ATM

InternetBanking

Branchservice

”la Caixa” Market average

Source: FRS Inmark

8.24

8.14

8.61

8.39

8.65

8.49

“WORKING WITH QUALITYTO GUARANTEE RESULTSAND FUTURE GROWTH”



2.8. Supporting the business: ”la Caixa” subsidiaries

The ”la Caixa” Groupencompasses a number ofsubsidiaries whose basic objectiveis to provide support services tothe Group.

e-la Caixa is responsible for carrying outthe multi-channel management strategydeveloped by ”la Caixa” (see section 2.4Multi-channel management) and is incharge of co-ordinating, managing anddeveloping the electronic channels madeavailable by ”la Caixa” to its customers,which include both financial and non-financial services. The main tasks assignedto e-la Caixa include both researchingand implementing new functionalities andsolutions and commercial managementof all distance channels. These activitiesare carried out in co-ordination withthe branch network to ensure fullintegration of all the channels used in itsdealings with customers, in line withthe multi-channel strategy adopted by theInstitution.

Through a hot-line service, e-la Caixaprovides customers with all the assistancethey may need to make proper use ofthe various channels: telephone, e-mailor online tools. It also offers its servicesto other Group companies. e-la Caixaalso manages investments in electronicchannel projects which provide thetraditional banking business with addedvalue and differentiated services.

Serviticket, the leading company in theSpanish ticketing market, is the ”la Caixa”Group company in charge of managingthe advance ticket sale servicethrough the various existing channels(self-service terminals, internet, mobile

phone, etc.), and offers an extensive,permanent entertainment programme.Serviticket offers the widest range ofentertainment options including cinema,theatre, music, sports, theme parks andhistorical monuments.

Servicios Informáticos ”la Caixa” isthe company in charge of managingand providing technology support to”la Caixa” and its Group, by managingthe Institution’s technical infrastructuresand also providing comprehensive ITservices to the Group’s subsidiaries. Itis also the company that manages thetechnology resources in the areas ofinternet, self-service, mobile phonebanking and digital television, monitoringthe security and integrity of customerinformation, in order to offer customers aservice of maximum quality.

In addition, through its subsidiarycompany Silc Immobles, it manages thebuilding of new data processing centreswhich will shortly house the infrastructureand technological processing capacity ofthe Group.

CaixaRenting specialises in full-servicelease (“renting”) transactions. The salespolicy carried out in recent years hasenhanced its presence in the SMEsector through distribution using the”la Caixa” network. In 2010, 337 millionnew operations were conducted forvehicle, capital goods and propertyleases. In virtue of an agreement signedin December 2010 with Arval (BNPParibas Group), (see section 3.2. Activemanagement of investee portfolio)”la Caixa” will continue to market vehicleleases with the CaixaRenting brand

CAIXARENTING100%

SUPPORT COMPANIES

E-LA CAIXA

GDS-CUSA

CAIXAVIDA

SUMASA

PROMOCAIXA

TRADECAIXA

FOMENT IMMOBILIARIASSEQUIBLE

ARRENDAMENTIMMOBILIARIASSEQUIBLE II

ARRENDAMENTIMMOBILIARIASSEQUIBLE

SERVIHABITAT XXI

SERVITICKET

SERVICIOS INFORMÁTICOS”LA CAIXA”

ACTIVITYMulti-channelmanagement

Ticket sales

Technologysupport

Renting

Default riskmanagement

Life insurance

Propertymanagementand salesConstructionprojects andmaintenanceMarketing

AdministrativeservicesDevelopment ofgovernment-subsidisedhousing

Rental ofgovernment-subsidisedhousing

Housing rental

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%



through its network of offices while Arvalwill provide the customer service. Also,CaixaRenting will continue to carry out itsactivities of leasing capital goods.

GDS-Cusa provides services related tothe management of default risk and thecentralised handling of certain operatingtasks of the ”la Caixa” branches.

Caixa de Barcelona Seguros de vida,S.A. de Seguros y Reaseguros is oneof the Group companies engaged in lifeinsurance, to which ”la Caixa” transferredthe insurance business in 1994 as creditinstitutions were no longer allowed torecognise insurance operations in theirfinancial statements. Since then, thecompany’s activity has been limited tomaintaining the existing operationsuntil expiry. Since the establishment ofVidaCaixa Group in 1992, the executionof new insurance contracts has beenchannelled through its subsidiaries(see section 3.1. Criteria CaixaCorp:internationalisation and diversification ofrevenues).

Servihabitat xxI is the property servicescompany of the ”la Caixa” Group. Itengages in property investment andthe provision of property services to theGroup and to third parties. It develops,manages, administers and sells properties

relating to the Group’s business activity,as well as properties of third parties andGroup-owned properties.

Sumasa manages new officeconstruction projects, refurbishmentworks and the maintenance of existingbuildings, and is also in charge ofprocurements and utilities managementfor ”la Caixa” and the ”la Caixa” Group.

PromoCaixa is the company in chargeof managing the customer loyalty andpromotion programmes, and performingother marketing activities for ”la Caixa”and other Group companies.

TradeCaixa provides administrative andaccounting services to some supportcompanies in the ”la Caixa” Group, andprovides support in managing reportingand following up the Institution’s variableinterest investment portfolio.

Foment Immobiliari Assequible,Arrendament Immobiliari Assequibleand Arrendament ImmobiliariAssequible II are the companiesby which the Affordable Housingprogramme is carried out as part of theWelfare Projects of ”la Caixa” to developand manage affordable quality rentedhousing.

2010 Financial Report of the ”la Caixa” Group3. Investee portfolio


Criteria CaixaCorp is the subsidiary incharge of carrying out the investmentstrategy and international expansion ofthe ”la Caixa” Group. The stake of”la Caixa” in Criteria CaixaCorp’s capitalstood at 79.45% on 31 December 2010.”la Caixa” has stated its intention ofholding the controlling stake indefinitely.

Criteria CaixaCorp has stakes inthe banking, financial and utilitiessectors with a clear commitment tointernationalisation which aims toprovide long-term value through activemanagement of its portfolio.

The development of this active investmentmanagement is shown by how it hasoccupied influential positions in theinvestees, become involved in governingbodies and had active involvementwhen defining the most suitablebusiness strategies and policies, to thuscontribute to ongoing development andto create value for the shareholder. Thismanagement also aims to raise the valueof investments which means identifyingand analysing new investment anddivestment opportunities in the market,with a controlled level of risk. To achievethis it has vast knowledge and experienceof the sectors where it operates.

The investment portfolio includes leadingcompanies with a sound leadership positionin their business sectors and in the countrieswhere they operate, and furthermore theyhave a proven capacity to create value andrevenues. In addition to its presence inthe banking and financial sector, CriteriaCaixaCorp also operates through itsinvestee companies in strategic sectorssuch as energy, telecommunications,infrastructures and utilities.

In addition, the investee portfoliocontributes geographical diversification tothe ”la Caixa” Group in two ways: investingin banks located in areas with high growthpotential (Eastern Europe, Mexico and Asia),and through industrial holdings in entitieswhich are multinational institutions in theirown right.

The share of stakes in the financial sectorreached 37% of the Criteria CaixaCorpportfolio value by year-end, very close tothe minimum objective established whenit was floated on the stock exchange. Thisshare has more than doubled since itsflotation, and the Group’s reorganisation,as detailed in section The ”la Caixa”Group’s New Structure , page 37, which willtransform Criteria CaixaCorp into the futureCaixaBank, is geared to this aim.

“TO BE A MAIN INvESTOR IN LEADINGCOMPANIES, PRIORITISING OPERATIONS

IN SECTORS WHERE WE HAvEExPERIENCE”

3. Investee portfolio3.1. Criteria CaixaCorp: internationalisation and diversification of revenues

3.1.1. Criteria CaixaCorp: subsidiary which encompasses the largest portionof the ”la Caixa” Group’s investee portfolio

79.5%

CRITERIA CAIXACORP

FINANCIAL BUSINESS

INTERNATIONAL BANKING

INSURANCE COMPANIES

SPECIALISED FINANCIAL SERVICES

UTILITIES

LISTED COMPANIES

UNLISTED COMPANIES



Listed companies: leadingcompanies in the energy,infrastructure and utility sectors

This group is made up of leadingcompanies with the capacity to growand create value, mainly focusingonSpain but with a high internationalpresence in energy, infrastructure andutility companies, sectors where”la Caixa” Group has much knowledgeand experience. A high performingportfolio has been built up whichis capable of generating attractivedividends, with an excellent track recordand a controlled risk level. In this regardit aims to create a value differentialin these companies by taking up corepositions which enable it to be activein the governing bodies and involved inkey decisions and in developing businessstrategies.

Gas Natural Fenosa is one of the topten European energy companies and theleading company in the integrated gasand electricity sector in Spain and LatinAmerica. It is one of the world’s leadersin liquified gas and the main operator inthe Atlantic and Mediterranean basins,and one of the main combined cycleoperations in the world. With over 20million customers (9 million in Spain) andover 1 GW of electric power installedall over the world. Gas Natural’s totalassets exceed EUR 45,300 million.

Repsol YPF is an international integratedoil and gas company, with activities inover 30 countries and a leader in Spainand Argentina. It is one of the ten largest

private oil companies in the world andthe largest private company in the energysector in Latin America in terms of assets.Repsol PF’s total assets exceed EUR

7, 00 million.

Abertis is a leading Europeaninfrastructure development andmanagement corporation, withover 3,700 km of toll roads undermanagement and total assets exceedingEUR 25,000 million. In recent yearsit has increased its geographical andbusiness diversification with investmentsin motorways, telecommunications,airports, car parks and logistics centres.At present, 50% of its income isgenerated outside Spain.

Telefónica is one of the world’sleading integrated telecommunicationsoperators, operating in Europe and LatinAmerica, and a leader in the Spanish-and Portuguese-speaking markets withtotal assets of over EUR 129,000 million.With almost 288 million access lines,Telef nica has a high international profile,generating over 0% of its businessoutside its domestic market: (i) in Spain,with over 47 million access lines, it leadsin all the business segments, (ii) in Europe(United ingdom, Germany, Ireland,Czech Republic and Slovakia), it has over5 million access lines, and (iii) in LatinAmerica, with over 183 million accesslines, it leads the market in the majorcountries (Brazil, Argentina, Chile andPeru), as well as doing significant levelsof business in others such as Mexico,Colombia, Venezuela and CentralAmerica.

3.1.2. Utility business

ENERGY

GAS NATURAL FENOSA

ABERTIS

INFRASTRUCTURES

REPSOL YPF

SERVICES/OTHERS

TELEFÓNICA

BME

LISTED COMPANIES

% of Criteria CaixaCorp’s stake

36.6%

12.7%

25.1%

5.0%

5.0%



AGBAR24%

50%

100%


COMPANIES

PORT AVENTURA ENTERTAINMENT

MEDITERRÁNEA BEACH& GOLF COMMUNITY, S.A.

Colombia, Algeria, Cuba and Mexico. Aspart of the Adeslas takeover transaction,in 2010 Criteria CaixaCorp reduced itsstake in Agbar to 24.03% (see section3.2. Active management of the ”la Caixa”Group’s investee portfolio).

Port Aventura Entertainment,in which Criteria has a 50% stake, is theleading leisure complex in Spain and oneof the largest in southern Europe.

At present Port Aventura offers atheme park, water park and operates aConvention Centre and four hotels, twoof which are owned by it.

Mediterránea Beach & GolfCommunity owns assets linked to PortAventura: three golf courses, land forresidential and commercial use alreadybuilt on, and a beach club in additionto two hotels and a Convention Centre,which are leased to the Port AventuraEntertainment company.

Bolsas y Mercados Españoles (BME)integrates all the registration, clearing andsettlement systems for Spanish secondarysecurities and markets.

Unlisted companies

Aigües de Barcelona (AGBAR) is oneof the leading companies managing thewhole cycle of water, which includescollecting, transporting, treating andsupplying drinking water, in additionto collecting and treating waste water,reusing it and finally returning it to theenvironment with the least environmentalimpact.

With total assets of over EUR ,500million, Agbar is the top ranking privatewater management company in Spain,supplying water to almost 13 millionpeople and providing sewerage servicesto over 9.3 million people. Internationally,the Agbar Group supplies drinking waterand sewerage services to over 12 millionpeople in Chile, United ingdom, China,

3.1.2. Utility business (cont.)



International banking

Regarding investments in the financialsector, the ”la Caixa” Group is expandingabroad with acquisitions of financialinstitutions. This line of business consistsof acquiring stakes in the banking sectorin those countries where it can provideadded value and take advantage ofgrowth potential.

Grupo Financiero Inbursa (GFI),withtotal assets close to EUR 1 ,000 million,with over 270 branches, more than ,300employees and 14,500 financial advisers,is the sixth largest financial group inMexico in terms of total assets and oneof the largest in terms of stock marketcapitalisation in Latin America.

Founded in Mexico in 19 5, theGroup offers commercial bankingservices, in which it is the leader in thesector, in addition to retail banking,asset management and life and non-lifeinsurance products, pensions, securitiesbrokerage and custody services, and it isthe leading financial group in Mexico forproperty custody services and one of thebest positioned in insurance and pensionfunds.

Erste Group Bank was founded in 1819and was Austria’s first savings bank. Thebank held an IPO in 1997 with a view toexpanding its retail banking business inCentral and Eastern Europe. It is currentlyAustria’s second largest banking groupand one of the leading groups inCentral and Eastern Europe, with totalassets of close to EUR 20 ,000 million.Outside Austria, Erste Group Bankcontrols banks in seven countries

(Czech Republic, Romania, Slovakia,Hungary, Croatia, Serbia and Ukraine) andis market leader in the Czech Republic,Romania and Slovakia, providing servicesto some 17.7 million customers andoperating over 3,200 branches.

The Bank of East Asia (BEA), foundedin 1918, with assets of over EUR 50,000million, more than 200 branches andover 11,000 employees, is the leadingindependent private bank in Hong ongand one of the best positioned foreignbanks in China, which, through itssubsidiary BEA China, has a network of 90branches and is still expanding.

Banco BPI is a universal, multi-specialisedfinancial group, focusing on commercialbanking for business, institutional andprivate customers, and is the thirdlargest private financial group in Portugalby business volume. Its total assetsexceed EUR 45,000 million and it has acommercial network of over 800 branchesin Portugal and more than 140 in Angola.

Boursorama, founded in 1995, is oneof Europe’s leading online brokers andsavings product distributors and is partof the Soci t G n rale Group with totalassets of EUR 3, 00 million.

Boursorama operates in four countriesand is the leader in France in onlinefinancial information and a referencepoint in internet banking. It is one ofthe main online brokers in the United

ingdom and Spain. In addition, since2009 Boursorama has developed onlinebanking in Spain (SelfBank, in a jointventure with ”la Caixa”) and in Germany(OnVista Bank).

3.1.3. Financial business

GRUPO FINANCIERO INBURSA

ERSTE GROUP BANK

THE BANK OF EAST ASIA

BANCO BPI

BOURSORAMA

20.0%

10.1%

15.2%

30.1%

20.8%


INTERNATIONAL RETAIL BANKING



Insurance and specialised financialservices: complementing”la Caixa” products and services

In order to meet at all times the entirerange of financial and service needs ofhouseholds and businesses, especiallySMEs, as well as institutions, the Groupcomplements the banking productsand services offered by ”la Caixa” withspecialised products through insurancecompanies, credit institutions andmanagers of collective investmentand securitisation undertakings.

Insurance companies

An insurance group serving almost6 million individual customers, withassets under management worthover EUR 33,000 millionThe insurance group operates throughsubsidiaries held by the holdingcompany vidaCaixa Group (formerlySegurCaixa Holding) which offers a widerange of brands for the different sectors inwhich they operate such as customised lifeand non-life insurance. Almost millioncustomers and over 50,000 businessesand collectives have taken out pensionplans and insurance (retirement plans,annuities and other products).

vidaCaixa engages primarily in lifeinsurance. It administers assets of over EUR

14,000 million in pension plans, rankingsecond in the industry for this kind ofbusiness.

The organic growth of the business hasreinforced VidaCaixa’s position as the toplife insurance company, with technicalprovisions totalling over EUR 19,000million. In addition, VidaCaixa consolidatedits leadership of the supplementarybenefits segment for businesses andindividuals with assets under management(technical provisions and pension plans) ofover EUR 33,000 million.

vidaCaixa Adeslas is the non-lifeinsurance company of ”la Caixa” Groupwhich is the result of the merger betweenSegurCaixa, focusing on the non-lifesegment, and Adeslas, market leader inhealth insurance in Spain, which tookplace in June 2010 (see section 3.2.Active management of the investeeportfolio). Additionally notable is its well-placed position in home insurance, theconsolidation process in car insurance andthe new range of products for SMEsand self-employed professionals.

On 13 January 2011, Mutua Madrile a and”la Caixa” reached an agreement underwhich the Madrid-based institution wouldacquire 50% of VidaCaixa Adeslas (seechapter 3.2. Active management of the”la Caixa” Group’s investee portfolio).

“vIDACAIxA GROUP STRENGTHENS ITSLEADERSHIP IN INDIvIDUAL AND GROUP

LIFE INSURANCE”

3.1.3. Financial business (cont.)

INSURANCE COMPANIES

VIDACAIXA GROUP

AGENCAIXA

VIDACAIXA

VIDACAIXA ADESLAS

GDS-CORREDURÍADE SEGUROS

100%

67%

100%

99.8%

100%

BUSINESS

Life insurance

Non-lifeinsuranceInsuranceagency

Insurancebrokerage




Specialised financial services

Complementary range of fund

management

InverCaixa Gestión is a collective

investment undertaking manager of

”la Caixa” Group and manages a wide

range of products: investment funds,

OIEC’s and portfolios. In addition it advises

”la Caixa” on operations to market

investment funds managed by third

parties.

In 2010 the funds managed by this

subsidiary stood at EUR 17,017 million,

and its share of the investment fund

market rose from 8.5% (December 2009)

to 10. % in 2010, which placing it thirdin the ranking for fund managers.

Specialised financial productsFinconsum offers consumer financing,mainly through the point of sale channel(distributors of goods and services and cardealers). In 2010, it brought in EUR 521million in new business, with loans andreceivables which totalled EUR 774 millionat 31 December 2010.

GestiCaixa has continued to operateon the financial markets as an assetsecuritisation manager. As of December2010, GestiCaixa managed 38 securitisationfunds with a volume of outstanding bondstotalling close to EUR 29,000 million.

INvESTMENT FUNDS ASSETS MANAGEDBY THE ”LA CAIxA” GROUP(Millions of euros)

08 09 10

Fixed income,money marketand other

Equity

Mixed fixed incomeGuaranteed funds

12,943

17,01715,457

SPECIALISED FINANCIALSERVICES

GESTICAIXA

FINCONSUM

INVERCAIXA GESTIÓN

100%

100%

100%BUSINESSFundandportfoliomanagementConsumerfinancing

Assetsecuritisation




Active management of the ”la Caixa”Group’s investee portfolio in 2010 led toa number of net investments totallingapproximately EUR 703 million. In2010 the Group continued its strategy ofrebalancing the investee portfolio, givingmore weight to financial investments,without excluding investments in utilities.Thus, the proportion of investments inthe financial sector have climbed from17% at the time of Criteria CaixaCorpflotation to 37% at present.

With regard to investments in thefinancial business, in January 2010 andas part of the agreements signed in June2009 by The Bank of East Asia (BEA),”la Caixa” and Criteria CaixaCorp, asubscription of a large part of BEA’scapital increase was undertaken at acost of EUR 331 million. This transactionhas enabled BEA to reinforce its growthstrategy, particularly in the Chinese market,and to bolster its capital ratios, in additionto increasing the position of ”la Caixa”Group in the bank, achieving a stakeslightly in excess of 15% by year’s end.

On 7 June a deal was signed to acquire99.8% of the share capital of Adeslasworth a total of EUR 1,193 million, invirtue of definite agreements signed on14 January 2010 with SuezEnvironnement and Malakoff M d ric. Thisinvestment was added to the VidaCaixaGroup (formerly SegurCaixa Holding),giving rise to vidaCaixa Adeslas, a non-life insurance company which was theresult of a merger between SegurCaixaand Adeslas, the leading company inhealth insurance in Spain. Of particularnote is that on 13 January 2011”la Caixa” and Mutua Madrile areached an agreement under whichMutua Madrile a would acquire 50% of

VidaCaixa Adeslas, for a total of EUR 1,075million. The deal includes a commercialagreement to distribute exclusively andindefinitely health, home and car insuranceproducts and the remaining non-lifebusiness through the network of branchesof ”la Caixa” and other channels ofVidaCaixa Adeslas.

As part of the above deal to acquireAdeslas, 24.5% of Agbar was soldto Suez Environnement for a totalof EUR million, keeping a 24.03%stake in Agbar’s capital and enabling SuezEnvironnement to take over Agbar, with75.01% of the capital.

In addition, on 29 December, the”la Caixa” Group and Arval (Group BNPParibas) signed an agreement to integratethe vehicle renting business ofCaixaRenting into Arval. As part of thisdeal, ”la Caixa” will continue to marketvehicle leases under the CaixaRentingbrand and Arval will provide the customerwith the final product. Also CaixaRenting,a directly-held subsidiary of ”la Caixa”,will continue to market lease operations ofequipment.

In addition, as part of the investmentsin utility companies, the ”la Caixa”Group, with active management ofthe portfolio, took advantage of thesituation of the market to sell offa total of EUR 588 million, generatingextraordinary profits (see section 1. High-quality profits in 2010).

Also in 2010, taking advantage of marketopportunities, Criteria acquired 0.87% ofRepsol for EUR 208 million, 0.95% of GasNatural for EUR 93 million and 0.14% ofTelef nica for EUR 107 million.

3.2. Active management of the ”la Caixa” Group’s investee portfolio

ACTIvE MANAGEMENT - MAINTRANSACTIONS:

Financial business

• Subscription of a large part of acapital increase in The Bank of EastAsia. Subsequently raise of the staketo over 15%.

• Acquiring 99.8% of Adeslas andreducing its stake in Agbar to 24.03%.

• Agreement in January 2011 to sell50% of VidaCaixa Adeslas to MutuaMadrile a.

• Agreement to integrate theCaixaRenting leasing business ofvehicles into Arval.

Service business

• Divestments making the most ofthe market situation for a totalof EUR 588 million.

• Acquiring 0.95% of Gas Natural,0.87% of Repsol and 0.14% ofTelefonica.

• Cancelling equity swap contractswhich affected part of the Telefonicaportfolio.



PERFORMANCE OF MARKET vALUEOF CRITERIA AND IBEx IN 2010

60

140

Dec.2009

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.2010

80

100

120

Criteria

20.85% Criteria - ÍBEX –17.43%

Íbex 35

Also, in the first two quarters equityswap contracts were cancelled onpart of the Telefónica portfolio andas a result, at 31 December 2010, theinvestment in this company stood at5.03%, not subject to equity swaps.

Market value evolution andunrealised gains on the ”la Caixa”Group’s listed companies

The market value of stakes in listedcompanies of ”la Caixa” Group, as of 31

December 2010, stood at EUR 18, 85

million, with unrealised gross gains of EUR

2,709 million.

Notably, the market value of Criteria

CaixaCorp, the company which includes

a majority of the ”la Caixa” Group’s

stakes, was revalued by 20.85%

in 2010, while the main indices

lbex-35 and Eurostoxx posted negative

growth –17.43% and –5.81 %,

respectively.



3.3. MicroBank

MicroBank, the social bank of ”la Caixa”,

was established in 2007 to channel the

business of microloans which, until that

time, had been carried out by ”la Caixa”

through its Welfare Projects, with the

aim of encouraging social and economic

work using the parameters of rigour and

sustainability that can be expected from a

banking institution. ”la Caixa” is the sole

shareholder of MicroBank.

Microloans for entrepreneursand families

MicroBank offers tailor-made financial

products and services especially

designed for the needs of entrepreneurs,

micro-companies and families so as to

contribute to:

– Promoting productive business and

creating employment through financial

support for self-employed professionals

and micro-companies.

– Self employment through granting

microloans to new entrepreneurs for

setting up small businesses.

– Personal and family development,

providing a response to needs and

helping to overcome temporary

difficulties.

– Financial inclusion, encouraging new

customers to use banking services

through the Institution’s extensive

commercial network.

Range of financial productsand services

MicroBank’s loans are based on two

types of microloans: microloans for

entrepreneurs and microloans for families.

Microloans for entrepreneursThese in turn are also divided into two

types:

• Financial microloans: These arepersonal loans aimed at self-employedprofessionals and micro-companiesthat need financing to set up, expandor consolidate their business or toattend their working capital needs.The maximum amount of these loansis 25,000 euros. There is no need forproperty collateral and the maximumperiod for repayment is five years,with a six month period of grace. Asa basic requirement, a business planis needed so as to study the feasibilityof the project that the entrepreneur isproposing to finance.

100%

MICROBANK



4,403(*)

(*) Includes loans granted previously throughWelfare Projects

20,641

36,84532,008

07 08 09 10

NUMBER OF MICROLOANS GRANTED

Amount granted New loans

TRENDS IN MICROBANK ACTIvITY(In thousands of euros)

176,778

32,080

212,080

36,845

+13.2%�

+16.7%�

1009 1009

• Social microloans: this is a personalloan with similar features to financialmicroloans, aimed at financing self-employment projects created bypeople who may find it difficult to gainaccess to the traditional loan systemand who, prior to the microloan beinggranted, receive guidance from one ofMicroBank’s collaborating institutions.

Microloans for familiesMicroloans for families are personalloans aimed at people with incomesbelow 18,000 euros per year to financeprojects linked to personal and familydevelopment, in addition to needsarising from momentary or unforeseensituations. The most common reasonsfor these include: expenses related tohousing, health, education and needsarising from situations of dependencyor disability, family regrouping, orpurchasing necessary transport. Themaximum amount granted is 25,000euros, these loans do not require propertycollateralisation and the maximumrepayment period is years with anoptional period of grace of 12 months.

Secured microloansSince mid 2010, MicroBank has taken onthe management of the pawn, or Montede Piedad, division of ”la Caixa” and aspart of the range of products has includedsecured microloans. These loans startat 300 euros and customers arerequested to provide a piece of jewellerybelonging to them as collateral. Thesesecured loans are aimed at people who,due to their job situation, finances orfamily, may find it difficult to gain accessto traditional forms of financing.

Liability productsMicroBank also has a series of liabilityproducts which, together with the usualservices provided by a financial institution,are specially adapted to the bank’scustomer profiles. These include: the BasicBank Book and MicroBank Basic CurrentAccount, the MicroBank Bank Book and

Current Account and the MicroBankServicuenta and Servicuenta MicroGiros.MicroBank deposit accounts may beaccessed throughout the wide network ofATMs belonging to ”la Caixa”.

ServicesAlso, to complete this range, MicroBankprovides its customers with the followingservices: Visa Electron MicroBank,guarantees and commitmentsof guarantee and L nea Abierta.

MicroBank Ethics FundIn 2010, MicroBank began to market theethics fund aimed at those people andgroups interested in investments withsocial returns. MicroBank Fondo tico Flis a fund which invests in variable returns,guaranteed international corporate andpublic returns globally.

With a minimum investment of 00 euros,this fund is managed by an external ethicscommittee made up of experts from theworld of academia, businesspeopleand representatives from NGOs whichadvises the fund manager in order tochoose the most important principlestaken into consideration and supervisesthe correct ethical compliance of theportfolio. MicroBank Fondo Etico Flconcedes 25% of its management feesto non-profit organisations. In addition,the ”la Caixa” Foundation contributesan equal amount for an internationalcooperation project chosen by the Fund’sSupport Committee.

2010, a year of consolidation

In 2010 the banking business wascompletely consolidated and its range ofproducts became especially importantgiven the current economic crisis.

Since MicroBank was established it hasgranted 93,897 loans for which ithas paid out EUR 588.9 million, allocatedfor financing several types of projects.Despite the current economic climate, the

«THE AvERAGE AMOUNT GRANTEDFOR TRANSACTIONS ASSOCIATED WITH

BUSINESS PLANS WAS IN ExCESS OF10,000 EUROS»



7%

25%

30%

9%

29%

DISTRIBUTION OF MICROBANK FINANCING

”la Caixa” loansOwn funds

CEB Loans Customer funds

Others

evolution of the business has largely beenpositive.

In 2010, MicroBank formalised 3 ,845microloans worth a total of EUR 212.08million. The average amount of theloans granted was 5,755 euros, a figurethat reached 10,02 euros for loans forentrepreneurial projects. Compared to2009, the number of contracts grew by13.2% and the amount granted roseby 1 .7%.

At year end, the bank held total assets ofsome EUR 322.2 million, which representsa rise of 24% compared to the previousyear. The NPL rate remained stablethroughout the year, ending with a ratioof 1.53%, considerably lower than theaverage in the Spanish banking sector.The quality of its loan portfolio confirms itas being one of the essential features forthe sustainability of the project.

The bank’s high level of capitalisationand liquidity, an extensive distributionnetwork, the support from its soleshareholder, ”la Caixa”, and backingfrom European financial institutions arejust some of the institution’s competitivestrengths. All these constitute a uniqueplatform to continue expanding abusiness that will be complemented bythe incorporation of new products andservices that have been especially adaptedto MicroBank’s customers.

Financing model

MicroBank’s financing model is based on:

– The Institution’s own funds, whichtotalled EUR 90.73 million at year end.

– Funds from customers attracted by theInstitution’s savings products.

– Financing received from loan institutionsamongst which we can highlight thefinancing from its sole shareholder,”la Caixa”, and loans signed with the

Council of Europe Development Bank(CEB).

”la Caixa” has allocated a high amountof its own funds to this bank, which is inaddition to its commitment to providingthe financing funds necessary to adaptto MicroBank’s growing business. Thefinancing provided by the CEB andcustomer deposits contribute considerablyto diversifying the sources of the bank’sfunding and to its sustainability.

Over 400 entities collaborating

MicroBank offers its products and servicesthrough the branches of ”la Caixa”,which has the largest network in Spain,with over 5,400 branches.

In addition, MicroBank has signedagreements with 417 social entities withthe aim of promoting self-employmentand providing access to financing bymeans of microloans, especially amongfor those groups which are excludedfrom financing or are at risk of sufferingexclusion. Among the advantagesprovided by the entities collaborating withMicroBank, the following is particularlyworthy of mention:

• Advising customers who apply formicroloans, thus contributing to a betterassessment of the transaction.

• Offering the necessary advisory servicesto carry out their business plan and priorappraisal of its feasibility and coherence.

• Extending the area of coverageof MicroBank’s distribution network ofproducts and services throughout Spain.

Support for European institutions

MicroBank’s business is part of a trendsupported by the European Commissionof fostering private initiative in the area ofself employment and provide support forcreating, consolidating or expanding micro-

«THE COLLABORATING INSTITUTIONSACT AS A LINK BETWEEN MICROBANKAND POTENTIAL CUSTOMERS, THUS

PROvIDING COMPLEMENTARY SERvICESFOR THEM»

«MICROBANK HAS SIGNED AGREEMENTSWITH LEADING EUROPEAN INSTITUTIONS

WHICH HAvE ESTABLISHED SUPPORTPOLICIES FOR MICRO-FINANCING

PROJECTS»

3.3. MicroBank (cont.)



«MICROBANK IS ESTIMATED TO HAvECONTRIBUTED TO CREATING OvER 30,000

JOBS SINCE 2007»

companies as a driving force for economicgrowth and job creation, with the positiverepercussions of this as regards improvingsocial cohesion.

The positive rating of MicroBank in Europeis shown by the fact it has been able tosign collaboration agreements with twoof the leading institutions through whichthe policies of support for microfinanceprojects are being drawn up:

– EIF: European Investment Fundwith which MicroBank has signed acollaboration agreement as part of theEuropean Union’s CompetitivenessInnovation Framework Programme (CIP).

– CEB: The Council of EuropeDevelopment Bank is the entity incharge of developing the Council ofEurope’s cooperation policies.

A reference point in microfinance

One indication of the attention attractedby MicroBank’s business and model isthe number of invitations to participatewith the main European institutions withinterests in this sector, and it has takenpart in numerous congresses and workmeetings, among which the followingwere of particular note:

– Presentation of the social bankingmodel for the Council of EuropeDevelopment Bank (CEB), in Brussels.

– Participation in work sessions entitledDeveloping a code of good conduct formicrofinance Institutions, in Brussels.

– Participation in the conference entitledMicrofinance in Europe, in Brussels.

In May MicroBank organised a conferenceentitled Boosting Microfinance in Europewith the aim of contributing to promotingthe development of microloans in Europethrough savings banks and banks.The social bank of ”la Caixa” broughttogether over 200 participants to shareexperiences and present their model ofsocial banking specialised in grantingmicroloans at a meeting lasting one day.

In its first three years of its life, MicroBankhas also managed to attract interest outsidethe European Union. In 2010 the bankreceived an invitation from the leadingmonetary authority in Hong ong, theHong ong Monetary Authority (H MA),and from the Bank of East Asia (BEA) topresent its model of social banking, whichis a pioneer both in Spain and Europe.

Growth and specialisation

MicroBank is currently the sole bankinginstitution in Spain devoted exclusively tomicrofinance. Since it was established,its microloans business has grown steadily,which last year enabled it to achieve over90,000 transactions granted.

MicroBank first began its businessgranting microloans for companies andtoday it has a growing range of productswhich enables it to offer an increasinglycomprehensive service for its customerswho, in addition to obtaining financingadapted to their needs, can manage theirsavings and use the necessary services tocover their basic operating requirements.

Following three years of business,MicroBank has consolidated a sustainablemodel of social banking with a proposalof value adapted to the wants of its maincustomer groups, as shown by the highacceptance level and fast growth of itsbusiness to date.

The bank is currently working so that itsfinancial services can provide coverage forthe ever growing demand for these, andthus, while expanding its financial business,it also contributes to providing increasinglyequal access to loans for groups whichhave more difficulties obtaining financingthrough traditional channels.

Social impact of microloans

Microloans firstly and primarily encourageself-employment, and secondly alsopromote job creation. In early 2010,MicroBank published a study conductedby the ESADE business school regardingthe social impact of its microloans onentrepreneurs who had applied for them.According to this report, and counting thebusiness owner, companies in the surveycreated an average of 1.57 jobs. These jobsclearly contributed to integrating somepeople into micro-companies and may bean additional way for them to enter the jobmarket. Based on the conclusions of thisstudy, it is estimated that MicroBank hascontributed to creating or consolidating over30,000 jobs since it was first established.



The ”la Caixa” Group operates in theventure capital industry throughthe following companies:

Caixa Capital Risc administers andmanages the assets of venture capitalcompanies and funds. It currentlymanages three funds: Caixa CapitalSemilla, Caixa Capital Pyme Innovaci nand Caixa Capital Micro.

Caixa Capital Semilla has funds ofEUR 15 million. The company invests,on a temporary basis, in small innovativecompanies at the concept building anddevelopmental stages of their productor service, helping to cover the lack offinancing for business innovation byentrepreneurs. At the end of 2010,the company had a portfolio of 55projects undertaken. The total amountof committed investment was EUR 13.5million.

Caixa Capital Pyme Innovacion withfunds of EUR 31 million, of which EUR25 million were committed by ”la Caixa”and the remainder by institutionalinvestors (The Catalan Finance Instituteand the Spanish National InnovationCorporation, ENISA). It complements theventure capital business by investing inthe growth capital stage. The company

invests, on a temporary basis, in small,recently created innovative companieswhich require financing to strengthentheir structure and enable them to reach astage whre they can consolidate a strongcompetitive position. At the end of 2010the company had accumulated a portfolioof 13 projects underway. Committedinvestment totalled EUR 1 million.

Caixa Capital Micro was founded inNovember 2010, with funds of EUR 8million. It focuses on recently createdmicro-companies based in Spain whichprovide a growth plan in any businesssector (except finance and real estate),encouraging co-investment from otherprivate and public entities.

As part of the activities which make uppart of the Corporate Responsibility of the”la Caixa” Group, Caixa EmprendedorxxI operates and aims to promote andsupport entrepreneurs in general andthe creation of innovative companieswith high potential growth throughoutSpain. As part of its programme and inconjunction with the branch network andleading national and regional institutionalbodies, it conducts specific actions such asorganising awards, courses and seminars,supporting networks and Business Angelsactivities, among others.

3.4. venture capital and financing for entrepreneurs

CAIXA CAPITAL RISC

CAIXA CAPITAL SEMILLA

CAIXA CAPITAL PYME INNOVACIÓN

CAIXA CAPITAL MICRO

CAIXA EMPRENDEDOR XXI

100%

100%

80.7%

100%

100%

% of ”la Caixa” stake

”LA CAIXA” VENTURE CAPITALAT EARLY STAGES



“GLOBAL RISK MANAGEMENT TOOPTIMISE THE RETURN/RISK RATIO”

Management of the risks inherentto the business is an essentialcomponent of the Group’sstrategy to secure a balancebetween returns and risk.

Global risk management is essential forthe business of any credit institution.At the ”la Caixa” Group, global riskmanagement is aimed at optimising thereturn/risk ratio by identifying, measuringand assessing risks and ensuring thatthey are always taken into account in thebusiness decision-making process, withoutlosing sight of enhancing customer servicequality. Likewise, the Group wishes tosafeguard the health of risk and preservethe capital adequacy mechanisms as aguarantee to consolidate the ”la Caixa”Group’s position as one of the soundestgroups in the Spanish market.

The fundamental risks undertaken as aresult of the Group’s own activities areclassified as follows: credit risk, arisingfrom the banking activity and alsoassociated with the investee portfolio;market risk, which includes structuralbalance sheet interest rate risk, the price orrate risk associated with treasury positionsand foreign currency risk, liquidity risk,operational risk and regulatory compliancerisk.

The ”la Caixa” Group’s risk management,monitoring and control tasks areperformed autonomously from thestandpoint of independence withrespect to the risk approval function. Risk

management is geared towards settinga risk profile aligned with the Group’sstrategic objectives and helps to ensureprogress towards a delegation modelfor risk approval underpinned by all thefundamental risk variables and amounts,while supporting the quantification ofrisk through capital use and expected lossscenarios.

The General Principles of RiskManagement approved by the Boardof Directors which monitors riskmanagement in the ”la Caixa” Group, canbe listed as follows:

• Risk is inherent to financial business andmanaging this is a duty of the wholeorganisation. Notable among thesegeneral principles are the following:independence of this duty, jointdecision-making, granting transactionsin accordance with the applicant’scapacity to pay back, monitoring thesetransactions until they are fully paid up,and obtaining returns in line with therisks involved.

• There are also further general principleswhich are the basis of the modelof managing risk at ”la Caixa” andwhich place it as a leading institution:measuring and managing cutting-edgemodels, decentralisation of decisionsso they can be made swiftly and asclose to the customer as possible, usingstandardised principles and tools andproviding adequate resources to carryout these aims.

4. Active risk management4.1. Comprehensive risk management at the heart of the strategy

2010 Financial Report of the ”la Caixa” Group4. Active risk management


4.1. Comprehensive risk management at the heart of the strategy (cont.)

Structure and organisation

The Board of Directors of ”la Caixa” isthe Group highest risk policy-setting body.Senior management acts withinthe framework of the duties assignedby the Board of Directors and makes up thefollowing risk management committees:

• Global Risk Committee. The GlobalRisk Committee is in charge of thecomprehensive management ofthe Group’s risk, as well as of theimplications of risk on capital adequacyand capital management. It analyses theGroup’s risk positioning and sets policiesaimed at optimising risk managementwithin the framework of the Group’sstrategic challenges.

• Loan Approval Policy Committee.The Loan Approval Policy Committeeproposes loan approval powers andloan prices, process efficiency and

streamlining measures, the level ofrisk taken in the loan acceptancediagnostics, and the risk profilesaccepted in commercial campaigns.

• Lending Committee. The LendingCommittee analyses and, whereappropriate, approves the transactionsthat fall within the scope of its authorityand refers to any transactions thatexceed its level of authority to the Boardof Directors.

• Refinancing Committee. The RefinancingCommittee analyses and, whereappropriate, approves the transactionsthat fall within the scope of its authorityand refers to any transactions thatexceed its level of authority to theLending Committee.

• Asset-Liability Committee (ALCO). TheALCO analyses liquidity, balance sheetinterest rate and foreign currency riskas part of structural risk and proposes

taking out hedges and launching issuesto manage those risks.

In addition, Criteria CaixaCorp managesand controls almost the entire equitysecurities portfolio of the Group.

”la Caixa” has a Senior Executive Vice-President’s office in charge of risk overthe whole Group. The Global RiskManagement Division, which reports tothe Senior Executive Vice-President’s office,is the global control unit performing theindependence functions required by BaselII, with responsibility for safeguardingthe quality of the assets and preserving thecapital adequacy and security mechanisms.The objectives of this division are toidentify, measure and integrate the variousrisk exposures together with the risk-adjusted return in each line of business,from the overall standpoint of the”la Caixa” Group and in accordance withits management strategy.



One of the most important missionsof the division, in conjunction withother divisions of ”la Caixa”, is to leadthe implementation of instrumentsthroughout the branch network to ensurecomprehensive risk management underthe Basel II guidelines, in order to secure abalance between the risks taken and theexpected returns.

The tasks assigned to complete thismission define the organisationalstructure of the Global Risk ManagementDivision, which is arranged around eachof the risks of the ”la Caixa” Group:

• Credit Risk: defining, validatingand monitoring the portfolio riskmeasurement models, at operationaland customer levels (ratings, scorings,probability of default (PD), loss givendefault (LGD) and exposure at default(EAD)) and developing tools for theirintegration into management andmonitoring. The above measurementsare used to determine the minimumcapital requirements, from a regulatoryand financial standpoint, and the risk-adjusted return on the portfolio.

• Market Risk: independent supervisionof the monitoring and control of riskrelating to own positions, balance-sheetrisk and liquidity risk, measured by theGeneral Markets Division.

• Operational Risk: definition andimplementation of the operationalrisk management model, developingthe policies, methodologies andtools required to provide continuousimprovement in business managementquality; and measurement of the capitalrequired to cover this risk, initially by thestandard method.

• Risk Aggregation and Economic Capital:aggregation of the total risk, taking intoaccount all risk types and studying anyinteractions between them.

In 2009 the Recovery ManagementDivision was created, which reports to thePresident and CEO’s office and aims toreduce non-performing loans, by helpingto prevent lending transactions frombeing placed in dispute status or speedingup the removal of such status.

Procedures, tools and strategies

For several years the ”la Caixa” Grouphas used a set of tools and techniquesbased on the specific needs of eachtype of risk. These include probability ofdefault calculations obtained throughrating and scoring tools, loss given defaultand expected loss calculations relating tothe various portfolios and risk-adjustedreturn tools, both at customer and branchlevel. Value at Risk (VaR) calculations arealso performed for the various portfoliosas a method for controlling and settingmarket risk limits, as well as a qualitativeidentification of the various operationalrisks relating to each of the Group’sactivities.

The tools and procedures backingcredit risk management are listed underthe headings of Lending organisationand processes, and later. Credit riskmeasurement and rating, (see section4.2.2).

All the risk measurement, monitoringand management work is performed inaccordance with the recommendationof the Basel Committee on BankingSupervision: “International Convergenceof Capital Measurement and CapitalStandards – A Revised Framework”,commonly known as Basel II, and theensuing implementation thereof by therelated European directives and Spanishlegislation in force, supported by threepillars:

• Pillar 1 determines the minimum capitalrequirements for financial institutionsbased on several financial risks: creditrisk, market risk associated with



4.1. Comprehensive risk management at the heart of the strategy (cont.)

financial assets and liabilities held fortrading and the position in foreigncurrency and operational risk.

• Pillar 2 analyses the main principles of thesupervisory process. It also sets outthe guidelines to be followed to developan internal capital assessment process,and defines the capital objectives inrelation to each institution’s risk profileand control environment, in order tocover possible risks, whether or notincluded in Pillar 1, such as: concentrationof risk, credit risk pressure, liquidity risk,balance-sheet interest-rate risk, etc.

• Pillar 3, which supplements the othertwo pillars, encourages market disciplineby setting out disclosure requirementshelping the market players to assess theinformation on capital, risk exposure andmeasurement processes.

Following a validation process, in June2008 the Bank of Spain authorised the”la Caixa” Group to use advanced modelsfor the calculation of the minimum capitalrequirements to meet credit risk. The Bankof Spain also authorised the use as of 31December 2007 of the internal model for

measuring market risk associated withfinancial assets and liabilities held for trading,foreign currency and gold risk or commodityprice risk for the calculation of regulatorycapital consumption.

Going beyond merely satisfying theregulatory capital requirements proposedby Basel II, which relate to formulationsgeared towards guaranteeing capitaladequacy with confidence levels of 99.9%,the ”la Caixa” Group applies more exactinglevels and is making progress towards a riskmanagement model based on EconomicCapital with the objective of assuring, atthe least, its current rating levels.

Internal auditing

The mission of Internal Auditing at the”la Caixa” Group is to guarantee aneffective monitoring of the internal controlsystem by performing an independentfunction which is mostly based within thestructure of the head company, reportingdirectly to the Board of Directors.

Auditing is strategically focused ondetecting, supervising and controlling themain risks at the ”la Caixa”Group. Its aim

is to keep the possible impact of the risksin achieving the group’s goals at areasonable level and to provide addedvalue through its actions. Theorganisation and methodology of thework are focused on attaining theseobjectives.

The methodology currently used is basedon identifying the Group’s main inherentrisks, the procedures where these mayarise and the controls to mitigate them.This list of risks, processes and controls arebrought up to date annually and allow theteam, through the subsequent auditingtasks, to evaluate the Group’s internalcontrol system and obtain a Map ofResidual Risks.

Internal auditing checks that regulationsand established controls are compliedwith and issues recommendations whenweaknesses are detected. It carries outinternal oversight as part of the overallBasel II risk management: Pillar 1 (creditrisk, operational risk and market risk), Pillar2 (SCR - Self-Assessment of Capital Reportand further risks) and Pillar 3 (PRR-PrudentRelevance Report).



4.2. Credit risk4.2.1. High-quality loan portfolio

The Bank of Spain’s accountingregulations classify loans and receivablesand debt instruments into variouscategories according to the defaultstatus and/or the existing risk, as follows:standard, substandard, doubtful and loss.

Standard risk also contains the followingsubcategories: negligible risk (publicsector, credit institutions, cash collateral),low risk (mortgages on completedhousing and on amounts under 80% ofthe appraised value), medium-low risk(other types of mortgages and securedloans), medium risk (other residentsectors and OECD countries), medium-high risk (consumer loans and loans tonon-OECD countries) and high risk (cardbalances and current and credit accountoverdrafts).

75.3% of the loan portfolio of ”la Caixa”was classified as being between lowrisk and medium-low risk according theaccounting regulation.

Diversified lending with adequatecollateral

The ”la Caixa” Group’s lending activityis geared towards meeting the financingneeds of households and businesses, andits lending portfolio is characterisedby its diversified and fragmented nature,which therefore reduces the already lowand strongly collateralised credit risk.

Along these lines, despite the stagnationin the real estate industry, mortgageloans accounted for % of total loans.Notably, 89% of the mortgage portfoliohad an LTV (loan to value) ratio of lessthan 80%.

Loans to private borrowers accountedfor 50.8% of the ”la Caixa” Group’stotal loan portfolio, 90.4% of whichwere mortgages. Of these, 92.3% weregranted to primary residence homebuyers.

A portion of the loans to primary residencehomebuyers are first taken out temporarily

“TOP QUALITY LENDING” “AvERAGE MORTGAGE PORTFOLIOLTv OF 47%”

“89% OF PORTFOLIO WITH LTv < 80%”

18.9%

22.8%

30.5%

16.8%

11.0%

MORTGAGE PORTFOLIOBY LTv RATIO

< 50%=60%-70%

> 80%

50%-60%

70%-80%

LOAN PORTFOLIO COMPOSITION RISKTRANCHES (*)

09 10

3.1%

20.8%

22.5%

53.6%

2.7%

22.0%

23.3%

52.0%

Low riskMedium risk

Medium-low riskMedium-high /High risk

(*) Categories based on the classification issuedin Bank of Spain Circular

29.4%

65.7%

4.9%

BREAKDOWN BY COLLATERAL

Non-mortgageMortgageportfolio

Public sector



by developers to finance constructionwork, and then, once the developmentis finished and has been sold, the privatehomebuyer is subrogated to the loan.Developer loans are characterised by beinggranted primarily for the construction ofnew homes concentrated in urban areas,and have an LTV ratio of around 0%.

As regards exposure to risk of developerstotalling EUR 2 ,284 million at year-endin 2010, EUR 20,2 7 million were linkedto property developments ( 0% finisheddevelopments, 23% ongoing and 17% inland) and ,017 million in other loans todevelopers. The NPL ratio in this segmentin December 2010 stood at 15.5%, withcoverage of EUR 1, 47 million in specificprovisions. Additionally, there are EUR1,835 million of general provisions.

Through the financing it grants tobusinesses, the ”la Caixa” Groupparticipates in the productive development

of all of the business sectors of the Spanisheconomy: infrastructure construction,industry (manufacturing companies andelectric, gas and water utilities), services(retail trade, hospitality and transport) andthe primary sector (agriculture, livestockbreeding and fishing). The strategyundertaken by ”la Caixa”, which is aimedat achieving a greater presence in thebusiness segment, gave a boost to lendingfor productive activities in 2010.

Financing for SMEs accounted for 0.3%of the Group’s business lending portfolio.In line with its clear commitment to furtherstrengthening its ties with the country’sindustrial fabric, in 2010 ”la Caixa”continued to develop new products andservices for SMEs.

In terms of geographical distribution,the ”la Caixa” Group’s lending activity ismainly concentrated in Spain.

LOANS TO PRIvATE BORROWERS

By type of business

Large companiesSMEsOthercollateral

Mortgagecollateral (*)

By collateral

LOANS TO BUSINESSES

39.7%

60.3%90.4%

9.6%

TOTAL

9.5%

50.8%

BusinessesPrivateborrowers

Others

39.7%

BREAKDOWN BY CUSTOMER

(*) Of which 92.3% relates to primaryresidence homebuyers

4.2.1. High-quality loan portfolio (cont.)



Following the application ofprinciples of the utmost prudencein terms of classifying risk andprovisioning at 2010 year-end,the NPL ratio was 3.71% and theNPL coverage ratio stood at 70%,140% with mortgage collateralwithout making use of the generalprovisions.

Since most loans are to private borrowersand consist primarily of mortgages toprimary residence homebuyers, the loanstructure has a significantly low risk level.Doubtful loans rose to EUR 7,228 million in2010 as a result of the overall deteriorationof the economy and of prudent riskrating policies, which resulted in anNPL ratio (doubtful loans as a percentageof total loans) of 3.71% for the ”la Caixa”Group and 3.47% for ”la Caixa”. Theratio increased by only 0.29% comparedto December 2009, and this is due to thehigh quality of the loan portfolio, prudentrisk management and intensive recoveryactivity. These ratios continue to be lowerthan the average for the Spanish financialsystem taken as a whole, which stood at5.81% at 31 December 2009.

Credit loss provisions totalled EUR 5,025million, EUR 1,111 million more than

in 2009, with the result that the NPLcoverage ratio stood at 70% at 2010 year-end. The coverage provided by mortgagecollateral brings the total coverage up to140%. At 31 December 2010, the generalprovisions amounted to EUR 1,835 million.The general provisions stood at 97% of theα ratio defined under Bank of Spain rules,considerably higher than the requiredminimum.

Therefore, the level of credit risk at the”la Caixa” Group remains among thelowest in the Spanish financial systemas a result of diversification, the value ofthe collateral and a prudent risk coveragepolicy. Management of the ”la Caixa”Group’s credit risk is characterised by aprudent loan approval policy and a highdegree of anticipation to achieve oneof the soundest positions in the Spanishfinancial market.

Finally, as a result of management of thecredit portfolio, the ”la Caixa” Group’sproperty portfolio available for saleamounted to a net sum of EUR 3, 52million at 31 December 2010, withcoverage of 25% thereof, of which EUR1,724 million were in property, 154 millionin unfinished developments and 1,774million in land.

“CONSERvATIvE RISKCOvERAGE POLICIES”

“NO USE WAS MADE OF THE GENERALPROvISIONS IN 2010”

3.42% 3.49% 3.53%3.46% 3.71%

09

6,321

1Q10

6,427

2Q10

6,529

3Q10

6,636

10

7,228

DOUBTFUL LOANS AND NPL RATIO(Millions of euros)

NPL ratio

Doubtfulloans

62% 62%66%64%

70%

09

3,914

1Q10

3,987

2Q10

4,198

3Q10

4,362

10

5,025

PROvISIONS AND NPL COvERAGE RATIO(Millions of euros)

NPLcoverageratio

Provisions

Added Removed

DOUBTFUL LOANS ADDED AND REMOVED BY SEMESTER(Millions of euros)

30% 72% 82%

1S08

1,989

–717

2S08

3,124

–806

1S09

4,054

–2,277

2S09

2,121–2,167

1S10

2,060–1,852

2S10

2,927 (*)

–2,228

% recovery

(*) Includes Caixa Girona



Lending organisation andprocesses

In 2010 the risk-adjusted price systemcontinued to be used, as in the previoustwo years, based on maximum amountsin relation to guarantees and customers,when this involves either individuals or verylarge companies, and for limits of expectedloss per each customer, for the remainingbusiness segments. Thus, in 2010, newpolicies were applied based on eachcustomer’s creditworthiness.

The introduction of parameters into thesystem of powers was confirmed to be anextremely effective tool for delegating asregards taking risks. Therefore it has beendecided to also extend this procedure tothe segment of property developers, andin early 2011 this operation is scheduled tobe introduced to the branch network.

The branches have been trained to use anew measurement model for approvingbusiness-oriented transactions in thesegment of non-customer self-employedprofessionals, or those not closely linked to”la Caixa”. This innovation concludes thewide range of creditworthiness measuringtools aimed at individuals.

As regards the credit approval system,the electronic file continued to be keyto the efficiency of this process to eliminate

the physical movement of the file. Systemshave been implemented to provide allkinds of authorisation, which allows amore accurate calculation of workloads atdifferent levels of the organisation. As fordealing with transactions, it is worth notingthe opening throughout the networkof new general lines for contractingderivatives, together with improvementsto integrate these into the customer riskassessment tools.

As part the process of determining theprice of transactions, both the pricing toolsintegrated into the applications system andthe information regarding the benchmarkspread and Risk-adjusted Spread are keyitems (see below in the section titled Risk-adjusted return), which are calculatedmonthly. In 2010 offices were providedwith greater leeway for negotiatingthe economic conditions applicable toan application, provided it guaranteesadequate coverage of the risk premium.

Finally, a new analysis platform forcompanies was introduced which is alreadyoperating in most of the network and inthe first quarter of 2011 it will be in use atall the branches. In 2010, organisationalchanges carried out in 2009 to guaranteethe independence of the function of riskregarding the commercial business wereconsolidated.

49.5%

20.3%

9.4%

17.2%

LOANS GRANTED BY LEvEL OF AUTHORITY% of principal granted

Business DivisionManagers

Branches

AreaManagers

Head Office

Board ofDirectors

3.5%

10.7%

LOANS GRANTED BY LEvEL OF AUTHORITY% of approved loans

4.4%

71.5%

13.4%

Business DivisionManagers

Branches

AreaManagers

Head Office andBoard of Directors

4.2.2. Credit risk management



Recovery Management

The Group’s risk management hasfocused on organisational efforts to dealwith the increase in non-performing loansand to adopt careful measures to ensurethat debts that are difficult to recover maybe claimed effectively, starting from thefirst signs of deterioration of borrowers’solvency, with ongoing monitoring oftheir creditworthiness and of themortgage collateral. 2009 saw thecreation of the Recovery ManagementDivision, which reports to the Presidentand CEO’s office and aims to reduce non-performing loans by helping to preventlending transactions from being placed indispute status or speeding up the removalof such status. In addition to analysingtransactions within its scope andparticipating in several committees(refinancing, developers’ risks, subrogationand for appraising the purchase ofproperty assets), in 2010 the RecoveryDivision led training courses for personnel

in the recovery teams deployed in eachTerritorial area.

Notwithstanding the constantmonitoring of the lending portfolio,”la Caixa” has also maintained measuresto mitigate the impact of the recession onindividual customers. Accordingly,”la Caixa” is adapting short-termpayments to debtors’ current availablefunds, with the expectation that thisdeferral will result in a successful outcomefor the transactions concerned. Out ofthe various options to achieve this end,an analysis is carried out with customersof the one which would best suit theirsituation, always ensuring the finalobjective is to recover the loan, whilecomplying with internal risk approvalprocedures.

Credit Risk Analysis andMonitoring

At ”la Caixa”, the Credit Risk Analysis andMonitoring Division, which reports to

the Global Risk Management Division,is kept independent from the RiskAnalysis and Approval Division andis organised into a set of territorialmonitoring units. Its function is twofold:to prepare follow-up reports onborrowers or groups of companies withhigher risks and to monitor risk holderswhose creditworthiness shows signs ofdeteriorating, using a rating system basedon risk alerts on each borrower.

The risk alert system and the borrowerscoring system based on the borrower’srisk performance play a key role inassisting both the approval system, asdiscussed above, and the monitoringprocess. As a result, borrowers with ahigher probability of default in the shortterm are analysed more thoroughly andmore frequently.

Another feature of the alert system is thatit is fully integrated with the customerinformation systems as the alerts areallocated to each borrower and a rating



4.2.2. Credit risk management (cont.)

policies are not affected by commercialconsiderations.

On 25 June 2008, the Bank of Spainauthorised the ”la Caixa” Group to usean internal ratings based (IRB) approachto calculate the minimum capitalrequirements for credit risk. The”la Caixa” Group is therefore now amongthe leading institutions that have passedthe supervisory validation process.

To achieve the Division’s aims, periodicalreviews are performed of all the models,to detect any deterioration in thequality of the measurements, and of theestimates made, in order to include anyshifts in the economic cycle. Practicallythe entire retail banking portfolio,which includes the individual and SMEsegments, is assessed on a monthly basis,enabling the knowledge base on thesecustomers and their portfolios to beupdated almost continually. This continualrisk assessment provides informationon the distribution of the risk exposurein the various portfolios with respectto creditworthiness, expressed as aprobability of default.

Risk measurement involves two basicconcepts: expected loss and unexpectedloss. Basel II provides for the need forentities to cover the expected lossamount through provisions. In this area,the ”la Caixa” Group applies the rulescontained in Annex I of Bank of SpainCircular 4/2004. Therefore, it recognisesthe specific, general and country riskprovisions required under the Circular tocover expected loss. Unexpected loss, onthe other hand, must be provided for withcapital.

is established on a monthly basis. Inaddition, the information on a customer’salerts is integrated with the rest ofthe information on the customer and,whenever the customer applies for a loan,a report is obtained on these alerts and onthe customer’s rating.

The outcome of the monitoring processis the establishment of “Action Plans” foreach of the customers analysed. Theseaim to complement the alert-based ratingwhile acting as a guide for the lendingpolicy for future loans.

Monitoring borrowers in the building anddevelopment sector continued to be themain focus of attention at the Credit RiskAnalysis and Monitoring Division. Withrespect to individuals, preventive riskmanagement enabled possible signs ofdeterioration in their capacity to repay tobe detected as soon as possible, in orderto analyse each case individually andadopt the most appropriate solution.

Credit risk measurementand rating

The mission of the Credit RiskMethodology and Models Division, whichreports to the Global Risk ManagementDivision, is to build, maintain and monitorthe credit risk measurement systems. Itis also in charge of guaranteeing andadvising on the use of these systems,while seeking to ensure that the decisionsbased on these measurements take intoaccount their quality. As establishedin the best practices, this functionis independent from the businessdivisions to ensure that the risk rating



BREAKDOWN OF ExPOSURE: CORPORATE (%)

AAA / AA A BBB BB B CCC

0

09

12

31

16

2

0

5

13

11

Property developersNon developer companies

AAA-CCC: internal descending scale of credit-worthiness

BREAKDOWN OF ExPOSURE: RETAIL (%)

AAA / AA A BBB BB B CCC

011

32

46

6 5

Expected loss

Expected loss is the result of multiplyingthree factors: exposure, probability ofdefault and loss given default. Thesethree factors provide an estimate of theexpected loss through credit risk fromeach loan, customer or portfolio.

Exposure at DefaultExposure at Default (EAD) provides anestimate of the debt outstanding in theevent of default by the customer. Thismeasurement is particularly significant forfinancial instruments with a repaymentstructure that varies according tocustomer drawdowns (credit accounts,credit cards and any revolving creditproduct, in general).

This estimate is obtained throughobservation of the Institution’s internaldefault experience, and relates thedrawdown levels upon default tothe drawdown levels in the 12 precedingmonths. The relationships observed interms of product type, term to maturityand customer characteristics are modelledfor each transaction in order to providethe aforementioned estimate.

Probability of default”la Caixa” has management tools in placeto assist with predicting the probabilityof default (PD) associated with each

borrower, covering virtually all of itslending business.

These tools are either product orcustomer-oriented. Product-orientedtools take into account the debtor’sspecific characteristics in relation to theproduct concerned and are used basicallyin connection with the approval of newretail banking transactions.

On the other hand, customer-orientedtools assess the debtor’s probability ofdefault on a general basis; however, theresults for individuals may be differentiatedaccording to product. Customer-orientedtools include behavioural scoring modelsfor individuals and ratings for companies,and are implemented throughout thebranch network as part of the ordinarycredit approval tools. The accompanyingcharts illustrate the distribution byrating scale of the whole portfolio,separating legal entities (companies andSMEs) and retail segments (mortgages,consumer-related and cards).

The credit risk rating tools were developedon the basis of the Institution’s NPLexperience and include the measurementsneeded to fine-tune the results to thebusiness cycle and the projections forthe next cycle, in order to provide ratingsthat are relatively stable in the long termwhich may differ from the default ratesobserved from time to time.



Risk master scale

% expected NPL 0.01 0.02 0.03 0.05 0.08 0.12 0.19 0.29 0.44 0.68 1.04 1.59 2.44 3.70 5.59 8.36 12.30 17.70 25.00 37.00

Scoring/Rating 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5


The accompanying table illustratesthe annual performance of defaultfrequency (the percentage of customersor, regarding the retail segment, ofcontracts in the healthy portfolio at thestart of the year that have defaulted atany time during the year) and shows animprovement in 2010 compared to theprevious year.

All the rating tools for companies arecustomer-oriented and vary considerablyaccording to the customer segment. Therating process for micro-enterprises andSMEs is very similar to that for individuals.In this case a modular algorithm wasdeveloped, which rates three differentsets of data: the financial statements, theinformation drawn from dealings withcustomers and certain qualitative factors.The ratings obtained are also adjusted tothe economic cycle.

The Corporate Rating function, whichreports to the Credit Risk Analysisand Monitoring Division, has internalmodels in place to obtain ratings for thelarge companies segment. These areexpert models and give greater weightto analysts’ qualitative opinion andwere aligned with Standard Poor’smethodology and, as a result, it has been

possible to use the global default ratespublished by this rating agency, whichmade the methodology more reliable. Themodels were developed on the basis ofdata with sufficiently significant historicaldepth and, therefore, they include thecycle effect to a reasonable degree andensure the stability of the measurementsobtained.

The results of all the tools are linkedto a risk master scale which provides astandard classification for the lendingportfolio, namely, it allows risk tobe grouped according to a commonexpected NPL ratio.

Loss given defaultLoss given default (LGD) is the percentageof debt that may not be recovered in theevent of customer default. The Institutionreviews the default recovery and defaultremedial procedures on an ongoing basisto minimise the impact of a potentialwrite-off.

The historical loss given default ratesare calculated using ”la Caixa” internalinformation, taking into considerationall of the cash flows associated with thecontracts from the moment of defaultuntil the situation is either remedied or a

write-off finally declared. This calculationalso includes an estimate of the indirectexpenses (office personnel, infrastructurecosts and the like) associated with theprocess.

In addition, work is being carried out onmodelling loss given default in order toprovide correct initial estimates, basedon the collateral, the loan-to-value ratio,the type of product, the borrower’screditworthiness and, as required bycurrent legislation, the recessionaryphases of the economic cycle.

In 2010 the Bank of Spain authorised theapplication of internal LGDs estimates forportfolios related to SMEs-Developers,together with those of Large Companiesand Large Developers, when calculatingthe minimum regulatory capitalrequirements.

As a result of the credit approval policies,of the requirement to provide collateralwith a more favourable loan-to-value ratio,and of the active management of thedefault remedial procedures, and with theImprovement that this has on the levelsof remedies and recovery in the event ofdefault, the estimated loss given defaultrates for the portfolio are currently very low.

Trend in NPL frequency

2008 2009 2010

Developers Companies 10.38% 14.81% 11.37%SMEs 5.12% 8.9 % .19%

Non developers Companies 2.4 % 3. 0% 1.51%SMEs 3.48% 4.84% 3.11%

Retail Mortgage 1.2 % 1. 5% 0.82%Consumption 1.89% 3.09% 2.24%Cards 0.70% 0.99% 0.50%

The Trend in NPL frequency in the retail segment was calculated using contracts as universe of calculation, not customers.



Risk-adjusted return

”la Caixa” has a number of tools in placeto assess the rate of return that may beexpected from a contract/customer basedon the coverage of the expected lossesand an adequate return on the capitalretained to meet the unexpected losseswhich might arise from the risks taken.

The benchmark spread for companiesindicates the cost of the risk taken in eachcustomer’s outstanding loans in the lastyear-on-year period. This cost is comparedwith the Risk-Adjusted Spread, whichindicates the customers’ overall rate ofreturn, net of the finance and operatingcosts, and ultimately determines theCustomer’s Added Value.

Unexpected loss and economiccapital

The measurement of expected loss ensuresthat credit risk can be properly controlledin “normal” market conditions. In fact,expected loss can be considered anadditional cost of the business. However,actual losses may occasionally exceedexpected losses as a result of suddenchanges in the cycle, or in the risk factorsspecific to each portfolio, and of thenatural correlation among the credit risksof the various debtors. In fact. Pillar 1 ofBasel II provides for certain minimumcapital requirements specifically to copewith potential unexpected losses. If aninternal ratings-based methodology suchas the one used by the ”la Caixa” Groupis adopted, the relevant formula for eachbusiness segment should be used, whichtakes into account the influence of theprobability of default, the proportionalimpact of the loss given default, theadjustment for the term to maturity ofthe transaction concerned and certainestablished correlations, whether fixedor in inverse proportion to the probabilityof default, depending on the businesssegment in question.

The variability of expected portfoliolosses constitutes the unexpected losses,which represent the potential unforeseenlosses. These losses are calculated asthe loss associated with a sufficiently highconfidence level of the loss distribution,less the expected loss. The aim of theInstitution is to have sufficient own fundsor capital to meet unexpected losses.

Two concepts have traditionally beendistinguished:

• Economic capital is the capital thatan institution should have in order toassume the unexpected losses whichmight be incurred and which mightjeopardise the Institution’s continuity. Itis an internal estimate which is graduallyadjusted according to the Institution’sown level of risk tolerance, volume andbusiness activity.

• Regulatory capital is the mandatorycapital to be maintained by the entity asrequired by the supervisory body.

Economic capital is not a substitute forregulatory capital but a supplementthereto which is used to achievegreater alignment with the actual riskprofile assumed by the Institution andinclude risks not foreseen, or onlypartially considered, in the regulatoryrequirements.

The level of capitalisation of an institution(not necessarily in regulatory terms) andthe risk profile assumed, measured interms of capital requirements, definean institution’s capital adequacy, i.e. itscreditworthiness.

Appropriate capital management is andwill be a differentiating factor among themost advanced and competitive entities.A management approach based on themeasurement of economic capital makesit possible to measure and manage risk,while identifying the riskier transactionsor lines of business and also those which



generate the highest economic valueaccording to the measurements of returnon capital.

”la Caixa” therefore has an integratedmodel in place that, using its ownstandards, measures the integratedrisk on the credit portfolio and onthe equity portfolio. This internaleconomic capital model is undergoingcontinual improvement to ensure that itincorporates industry best practices in thisarea and includes the Group’s risk profileas accurately as possible.

Internal validation

The New Basel Capital Accord is gearedtowards determining the minimum capitalrequirements of each entity in accordancewith its risk profile. In the area of creditrisk it enables entities to use internalrating models and their own estimates ofrisk parameters to determine their capitalrequirements.

Until 2010 the reviews made by InternalValidation were limited to credit risk. Thisyear, following the regulator’s guidelinesthe area covered has been extended tomarket risk. In the last quarter, a definitionwas drawn up of the framework forvalidation in this area and this will bedeveloped in 2011.

The importance of the process fordetermining capital requires adequatecontrols to be in place which guaranteethe reliability of the estimates, both froma quantitative and from a qualitativeperspective. The control environmentmust also be sufficiently specialised andongoing, supplementing the traditionalcontrol functions (internal audit andmonitoring).

The Bank of Spain establishes internalvalidation as an essential prerequisiteto validation by the supervisory authority,

and it must be performed by a specialisedindependent department within theInstitution.

The validation function is carried outby the Internal Validation Unit, whichfalls under the General Division of theValidation and Technical Secretary’soffice, the latter reporting directly to theSenior Executive Vice-President’s officein charge of Risks, and is independent ofthe model development team and theteam in charge of defining policies andprocedures.

The main goals of the Validation Unitare to issue an opinion on whetherthe internal models are adequate forregulatory purposes, identifying allthe important uses thereof, as well asassessing whether the risk managementand control procedures are aligned withthe Institution’s strategy and risk profile.In addition, it must provide support to theExecutive Management (particularly tothe Global Risk Management Committee)in their responsibilities regarding approvalof the use of internal models andcoordinate the supervisory validationprocess with the Bank of Spain.

The Internal Validation work methodologyis based on drawing up annual planswhich include the reviews to be madethroughout each year. These reviewsare grouped into Validation Cycles andspecific Tests. Validation cycles are a setof periodical reviews which enable theannual analysis of each IRB model, itsperformance and its integration intothe risk management processes. Thespecific tests consist of thorough reviews,which may occur due to the approvaland introduction of internal models orthe updating of the risk parameters, toreviews initiated by Internal Validationdue to signs detected in the validationcycles or to reviews requested by thesupervisor or divisions affected.


Follow-upreport onthe model

Managementintegration

map and report

Follow-upreport onvariables

Qualityof data

validationcycle



Additionally, in its specific duties ascontroller, Internal Validation carriesout reporting functions, of particularnote amongst which is coordinatingthe drawing up of the “IRB MonitoringDossier”, a document which is requestedby the supervisor for each internal modelapproved for regulatory use.

Also, as part of credit risk, following yearsof experience validating and monitoringmodels, the aim is to broaden the reachof reviews to the field of integrating theminto management, in order to providesupport for Executive Management andadd value in this respect to the remainingareas of the Institution (Methodologies,Policies, Systems, etc.).

Investee Portfolio

The risk relating to the ”la Caixa” Group’sinvestee portfolio is the risk associatedwith the possibility of incurring losses asa result of fluctuations in market pricesand/or default on the positions making upthe equity portfolio within a mid- to long-term time horizon. At 31 December 2010,the market value of the listed investeeportfolio amounted to EUR 18, 85million, including pre-tax unrealised gainsamounting to EUR 2,709 million.

The Global Risk Management Division,with the support of Criteria CaixaCorp,measures the risk of these positions, bothfrom the standpoint of the underlyingrisk in terms of market price volatility,applying VaR models (a statistical estimateof the maximum potential losses byreference to historical data on changesin prices) to the return spread in relationto risk-free interest rates as indicated inBasel II, and also from the standpoint ofthe uncertainty of default, using modelsbased on the PD/LGD approach, alsofollowing the guidelines contained inBasel II.

These indicators are monitored onan ongoing basis to ensure that themost appropriate decisions are alwaysadopted on the basis of the past andprojected performance of the marketsand of the ”la Caixa” Group’s strategy.These measurements and the relateddevelopments are necessary to monitormanagement of the investee portfolio andenable strategic decisions to be made onthe composition of the portfolio by seniorexecutives of the ”la Caixa” Group.

The Global Risk Management Division hasan Investee Risk Control unit, the mainobjective of which is to optimise the risk/return ratio on this portfolio and monitorand, once investments or divestmentshave been made, follow up on the riskrelating to the asset positions held by”la Caixa” in investees. The risk relatingto the asset positions comprises twofactors: the ownership interest and therisk granted to investees.

The principle guiding the work of thisunit is to apply a holistic approach torisk, so that the equity investments of”la Caixa” are considered within a broadrisk assessment context. Analysis of thesepositions provides a dynamic overviewof the effects of the diversification andconcentration of the Group’s globalportfolio. The work carried out by this unitis designed to provide management witha global analysis of the risk associatedwith the interests in investees, comparingthem with the investments in other assets.

In addition, the Market Risk ControlDivision, in conjunction with CriteriaCaixaCorp, includes in its risk monitoringprocess the risk arising from derivativesand the foreign currency risk associatedwith the investee portfolio, and alsoperforms an ongoing follow-up of therisks relating to the financial markettransactions associated with the financialinvestees.



“MINIMUM ExPOSURE TO RISK FROMINTEREST RATES ON THE BALANCE SHEET

THROUGH NATURAL HEDGING ANDFINANCIAL MARKETS HEDGING”

Matrix of maturities and repricings in the sensitive balance sheet (static gap) of ”la Caixa” at 31/12/2010

(Figures in millions of euros) 1 YEAR 2 YEARS 3 YEARS 4 YEARS 5 YEARS > 5 YEARS

Assets 182,899 5,904 3,185 4,222 4,919 3,139Mortgage collateral 11 ,59 441 9 64 84 851Other guarantees 58,295 4,852 2,302 38 385 1,475Debt securities 8,008 611 787 3,520 4,450 813Liabilities 132,520 21,136 12,918 10,534 5,144 22,016Customer funds 92,400 17,319 7,718 5,905 2,503 8,983Issues 32,459 3,81 5,200 4, 29 2, 38 13,022Net monetary market 7,661 1 0 0 3 11GAP 50,379 (15,232) (9,733) (6,312) (225) (18,877)HEDGES (34,345) 5,768 5,175 7,715 2,814 12,873TOTAL GAP 16,034 (9,464) (4,558) 1,403 2,589 (6,004)

Management of balance sheetinterest rate risk

Interest rate risk, which is inherent to allbanking activities, arises when changesin the structure of the market yield curveaffect assets and liabilities and cause themto be renewed at rates other than thoseset previously, thereby affecting theireconomic value and net interest income.This risk, also known as structural interestrate risk, is managed and controlleddirectly by management of ”la Caixa”through the ALCO.

The ”la Caixa” Group manages interestrate risk pursuing a twofold objective:to reduce the sensitivity of net interestincome to interest rate fluctuationsand preserve the economic value ofthe balance sheet. To attain these twoobjectives, the Group actively managesinterest rate risk by taking out financialmarket hedges in addition to thenatural hedges generated in the Group’sown balance sheet as a result of thecomplementary nature of the sensitivity tointerest rate fluctuations of the depositsand lending transactions arranged withcustomers.

The General Markets Division is responsiblefor analysing interest rate risk andproposing hedging transactions alignedwith the above objectives to the ALCO.

To carry out this task, various measures areused to evaluate the risk:

I. Static gap analysis provides abreakdown of maturities and interestrate resets, at a given date, of sensitiveitems on the balance sheet. Thesensitivity to interest rates and theexpected term to maturity, based onpast experience of customer behaviour,are analysed for items without acontractual maturity date (e.g. demanddeposits), while taking into account thelikelihood of customers withdrawingthe funds from these products.Internal models are used for the earlyrepayment or termination assumptionswhich include behavioural variablesof customers, products, seasonalityand macroeconomic variables, inorder to infer the customers’ futureperformance.

II. The sensitivity of net interest incomeshows the impact upon the review ofon-balance-sheet transactions causedby changes in the yield curve. Thissensitivity is determined by comparinga net interest income simulation byreference to various interest ratescenarios. The most likely scenario,which is arrived at using underlyingmarket rates, is compared against otherscenarios of rising or falling interestrates and changes in the slope of the

4.3. Managing the risk of balance sheet positions

curve. The two-year sensitivity of netinterest income to sensitive on-balance-sheet assets and liabilities, taking intoconsideration scenarios of rises and fallsin interest rates of 150 basis points eachand distributing the rate fluctuationover the two years is approximately0.39% in the rising scenario and 0.7 %in the falling scenario.

III. The sensitivity of asset/liability valuesto interest rates measures the potentialeffect on balance sheet present value inthe event of interest rate fluctuations.The sensitivity of net interest incomeand equity value are measures thatcomplement each other and provide anoverview of structural risk which is morefocused on the short and medium term,in the case of net interest income, andon the medium and long term in thecase of equity value.

IV. VaR measures are used following thetreasury-specific methodology (seethe next section).



“POSITIONING BASED ONA MARKET SCENARIO THAT

PREMIUMS LOW RISK ABOvERETURNS”

DISTRIBUTION OF THE DAILY RESULTSOF THE FRONT OFFICE TRADING ACTIvITYIN 2010(Frequency: number of days)Millions of euros

113 4

17

86

6150

135 2 2 3

<–4 >6

–4/–

3–3

/–2

–2/–

1–1

/0 0/1

1/2

2/3

3/4

4/5

5/6

most commonly used risk measures areSensitivity and VaR (Value at Risk).

Sensitivity calculates risk as the impact onthe value of positions of a minor changein the risk factors, as follows:

• For interest rate and inflation risk, acalculation is performed of the changein the present value of each of thefuture flows (actual or forecast) inthe event of a one basis point (0.01%)change at all stages of the curve.

• For foreign currency risk, a calculation isperformed of the change in the countervalue of each of the foreign currencyflows in the event of a one percent (1%)change in the exchange rate.

• For the price risk on shares or otherequity instruments arranged by thefront office, and for commodity pricerisk, a calculation is performed of thechange in the present value of theposition or portfolio in the event of aone percent (1%) change in the price ofits components.

• For the volatility risk (interest-rate orprice fluctuations) associated withoptions transactions (interest-ratecaps and floors and currency or equityoptions), a calculation is performedof the change in the present value ofeach of the future flows in the eventof volatility changes in quoted exchangerates at all stages of the curve, inexchange rates and/or in asset prices.

• For the correlated activities risk(dependency between prices) contractedby the front office activity, the variationof the current value of the portfoliostake is calculated against a variation inthe correlation of one percentage point(1%) of the prices of its composition.This risk is only found in unusual exoticequity options.

V. EaR (earnings at risk) measures are usedto establish, with a given confidencelevel (99%), the maximum expectedloss in net interest income for the nexttwo years, considering a given levelof balance sheet growth. This analysisalso enables the possible worst or bestscenarios to be identified in all thesimulated scenarios and thus obtainmaximum risk levels.

In keeping with current legislation, the”la Caixa” Group does not consumecapital as a result of the structuralinterest rate risk taken, due to its lowbalance sheet risk profile. Althoughthe balance sheet interest rate risk takenby ”la Caixa” is substantially belowlevels considered significant (outliers), inkeeping with the proposals of Basel II, aseries of steps continue to be taken at”la Caixa” towards more intensemonitoring and management of balancesheet interest rate risk.

Management of the market riskof treasury positions

The Market Risk Control Division isresponsible for monitoring these risksand assessing counterparty risk andthe operational risk associated with theactivity in the financial markets. To fulfil itsduties, each day this division monitors thecontracts traded, calculates how changesin the market will affect the positionsheld (daily result of marking to market),quantifies the market risk taken, monitorscompliance with the limits and analyses theratio of actual return to risk taken.

As a result of its front office activities infinancial markets, the ”la Caixa” Groupis exposed to market risk due to adversechanges in the following risk factors:interest and exchange rates (caused bythe treasury positions taken), share prices,commodity prices, inflation, volatilityand changes in the credit spreads onprivate fixed-income positions. The two



RISK OF THE FRONT OFFICE TRADINGACTIvITY IN 2010Daily performance of VaR (in thousands of euros)

0

2,000

10,000

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

1,000

3,0004,000

7,000

5,0006,000

9,0008,000

“AvERAGE vAR 2010:EUR 5.3 MILLION”

These sensitivity analyses provideinformation on the impact on theeconomic value of positions of a rise ininterest rates, exchange rates, pricesor volatility, but do not provide anyassumptions regarding the likelihood ofthis change. In order to standardise riskmeasurement across the entire portfolio,and to provide certain assumptionsregarding the extent of changes in themarket risk factors, the VaR methodologyis employed (VaR: a statistical estimateof the potential losses by reference tohistorical data on changes in prices), usinga one-daytime horizon and a statisticalconfidence level of 99%. In otherwords, 99 times out of 100 the actuallosses sustained will be less than the lossesestimated under the VaR method. In 2010the average VaR in the front office tradingactivity was EUR 5.3 million. The highestconsumption levels, up to a maximum ofEUR 9.3 million, were attained in May,mainly as a result of the widening anddestabilising of exchange rate fluctuationsbetween Germany’s public debt and thatof its neighbouring countries, causedmainly by contagion of the financial crisisin Greece.

Two methodologies are used to obtainthis measurement:

• The parametric VaR technique, whichis based on the statistical treatmentof parameters such as volatility andmatching fluctuations in the prices andinterest and exchange rates of the assetscomposing the portfolio. Accordingto the recommendations of the BaselCommittee on Banking Supervision,it is applied using two time horizons:75 days, giving more weight to recentobservations, and 250 days, giving equalweight to all observations.

• Historical VaR calculates the impact onthe value of the current portfolio ofhistorical changes in the risk factors; thechanges over the last 250 days are takeninto account and, with a confidencelevel of 99%, VaR is taken to be thethird worst impact on the value of theportfolio.

A drop in the credit rating of asset issuerscan also give rise to adverse changes inquoted market prices. Accordingly, theMarket Risk Control Division completesthe quantification of market risk with anestimate of the losses arising from changesin the volatility of the credit spread onprivate fixed-income positions (SpreadVaR), which constitutes an estimate ofthe specific risk attributable to securitiesissuers. This calculation is performed witha given stress component, assuming thatthe daily change in credit spreads mayresult in a change equal to that historicallyexperienced over a one-week time horizon(taking into account, when doing so, thepotential lower liquidity of these assets)and a confidence level of 99%.

At 31 December 2010, the”la Caixa”Group’s exposure to structured credit,which is included under “FinancialAssets and Liabilities Held for Trading”, isresidual and is measured at market price.

The Market VaR (arising from fluctuationsin interest rates, exchange rates and thevolatility of both) and the Spread VaRare aggregated on a conservative basis,assuming zero correlation between thetwo groups of risk factors.

In the table “VaR by risk factors” there isan estimate of the average VaR amountsattributable to the various risk factors.As may be noted, consumption levels

vaR by risk factors

(Thousands of euros) AvERAGE vAR2010

INTEREST RATE 2,466E CHANGE RATE 89SHARE PRICE 324INFLATION 81COMMODIT PRICE 14INTEREST-RATE VOLATILIT 118E CHANGE-RATE VOLATILIT 18CREDIT-SPREAD VOLATILIT 3,361SHARE-PRICE VOLATILIT 95COMMODIT VOLATILIT 0SHARE PRICE CORRELATION 25

4.3. Managing the risk of balance sheet positions (cont.)



GROSS BACK TEST 2010(In thousands of euros)

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.–10,000

0

5,000

15,000

20,000

VaR + VaR –

10,000

–5,000

Profits and losses

NET BACK TEST 2010(In thousands of euros)

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.–10,000

0

5,000

15,000

20,000

VaR + VaR –

10,000

–5,000

Profits and losses

are moderate and basically relate to yieldcurve and credit spread risks. The volatility,commodity price and inflation risk amountsare of very marginal significance.

To confirm the suitability of the riskestimates, daily results are comparedagainst the losses estimated under theVaR technique (backtest). As required bybanking regulators, two validations aremade of the risk estimate model:

a) Net backtesting, which relates theportion of the daily result of markingto market for open transactions at theclose of the previous session to theestimated VaR over a time horizon ofone day, calculated on the basis ofthe open positions at the close of theprevious session. This validation is themost appropriate means of performinga self-assessment of the methodologyused to quantify risk.

b) Gross backtesting, which involves anassessment of the total result obtainedin the day (therefore including anyintraday transactions) by comparingthis result against the VaR over atime horizon of one day calculatedon the basis of the open transactionsat the close of the previous session.This provides an assessment of theimportance of intraday transactions ingenerating profit and calculating thetotal risk of the portfolio.

Lastly, two stress testing techniques areused on the value of the treasury positionsto calculate the possible losses on theportfolio in situations of extreme stress:

1. Systematic stress testing: this techniquecalculates the change in value of theportfolio in the event of a specificseries of extreme changes in the mainrisk factors. The following factors areconsidered: parallel interest rate shifts(rising and falling); changes at variouspoints of the slope of the yield curve(steepening and flattening); increasedand decreased spread between theinstruments subject to credit risk andgovernment debt securities (bond-swapspread); shifts in the euro-US dollarcurve spread; higher and lower volatilityof interest rates; the appreciation anddepreciation of the euro versus thedollar, the yen and sterling; higher andlower volatility of exchange rates; risingand falling stock and commodity pricesand, lastly, the increased and reducedvolatility of stocks and commodities.

2. Historical scenario analysis: this analysisaddresses the potential impact of actualpast situations on the value of thepositions held, such as the collapse ofthe Nikkei in 1990, the US debt crisisand the Mexican peso crisis in 1994,the 1997 Asian crisis, the 1998 Russiandebt crisis, the growth and collapse ofthe technology bubble in 1999-2000,

the terrorist attacks that have caused themost severe effects on the financialmarkets over recent years, the creditcrunch of summer 2007, the liquidityand confidence crisis triggered by thefailure of Lehman Brothers in September2008, or the increase in credit gaps inthe surrounding euro zone due tocontagion from the debt crises of Greeceand Ireland in 2010.

To complete these analyses of risk underextreme situations, the “worst-casescenario” is determined, which is thestate of the risk factors in the last yearthat would cause the heaviest losses inthe current portfolio. This is followed byan analysis of the distribution tail, i.e.the size of the losses that would ariseif the market factor movement causingthe losses is calculated on the basis of a99.9% confidence level.

As part of the required follow-up andcontrol of the market risks taken,management approves a structure ofoverall VaR and sensitivity limits forthe front office activity. The risk factorsare managed by the General MarketsDivision on the basis of the return/riskratio determined by market conditionsand expectations. The Market RiskControl Division is in charge of monitoringcompliance with these limits and therisks taken, and generates a daily reporton position, risk quantification and the



BREAKDOWN OF RISK BYCOUNTERPARTY RATING (%)Balance at 31/12/2010

AAA

AA–

A+

AA– BB

BBB

B– BB–

BBB+ BB

+ BB

0

15

10

5

25

AAAA+

20

4.3. Managing the risk of balance sheet positions (cont.)

risks within the Group’s overall exposuremanagement framework, althoughthe specific responsibility for managingand monitoring the exposure to thecounterparty risk arising from the frontoffice activity lies with the Risk Analysisand Approval Division, which prepares theproposals for approval of risk lines andmonitors the use of such lines.

The ”la Caixa” Group controlscounterparty risk by means of anintegrated, real-time system whichprovides knowledge of the limit availableto any counterparties, by product andterm, at all times. The risk is measuredwith reference to both present marketvalue and future exposure (value of therisk positions taking into account futurechanges in the market factors underlyingthe transactions).

Furthermore, the Risk Analysis andApproval Division, together with the LegalAdvisory Division, as part of monitoringthe credit risks assumed by the marketoperations, actively manage and monitorthe adequacy of the related supportingcontractual documentation. With the aimof mitigating its exposure to counterpartyrisk, ”la Caixa” maintains a solid base ofguarantee contracts; virtually all the risksassumed in connection with derivativeinstruments are covered by ISDA and/or CMOF standardised contracts, whichprovide for the possibility of offsettingthe flows of outstanding collections andpayments between the parties for all thetransactions covered by these contracts.

The ”la Caixa” Group has enteredinto collateral agreements with mostcounterparties, which guarantee themarket value of derivative operations. Thepercentage of derivative collateralisationwith financial institutions at ”la Caixa”exceeds 98%.

utilisation of risk limits which is distributedto management, front office executivesand the internal audit division.

Therefore, the market risk of the”la Caixa” Group’s treasury positionsis managed in accordance with themethodology and monitoring guidelinesproposed by Basel II.

Control of the risks taken in financialmarket operations must be supplementedby a calculation and monitoring ofthe losses that could arise as a resultof default by the counterparty dueto insolvency or inability to meet thepayment obligations.

The maximum authorised exposureto credit risk with a counterparty isdetermined on the basis of a calculation,approved by management, which is basedprimarily on ratings for the entities and onthe analysis of their financial statements.

Additionally monitoring is conductedon both the market value of sharesand Credit Default Swaps (CDS) of thecounterparties to detect any decrease intheir solvency.

The exposure of the ”la Caixa” Groupvis-a-vis credit institutions amountedto EUR 9,025 million at 31 December2010. Nearly all the exposures arisingfrom front office activities are undertakenwith counterparties based primarily inEuropean countries and the United States.

In addition, the distribution by ratingreflects the significance of the operationswith counterparties rated as investmentgrade, i.e. those which the internationalcredit rating agencies have consideredto be safe due to their high paymentcapacity.

The Global Risk Management Divisionhas responsibility for integrating those



“ACTIvE MANAGEMENT OF THE BALANCESHEET TO GUARANTEE ADEQUATE

LEvELS OF LIQUIDITY AND STABLE ANDDIvERSIFIED FINANCING SOURCES”

The ”la Caixa” Group keepsexcellent liquidity levels withcareful monitoring of naturalhedging on the balance sheet andactive management of financingsources.

The Balance Sheet Risk Analysis Division,which reports to the General MarketsDivision, is in charge of analysing liquidityrisk.

The ”la Caixa” Group manages liquidityrisk so as to ensure that it is always ableto meet its obligations on a timely basisand never see its investment activitiessuffer from a lack of lendable funds. Thisobjective is achieved by actively managingliquid assets, through ongoing monitoringof the balance sheet structure, on thebasis of maturities and early detectionof potentially undesirable structures ofshort- and medium-term liquid assets,while adopting a strategy that stabilisesfinancing sources.

Also, ”la Caixa” has a Liquidity RiskContingency Plan, in which analysesare made under both ordinary marketconditions and crisis situations, and inwhich various systemic and combinedcrisis scenarios are considered, entailingvarious loss given default assumptions interms of reduced liquidity. Five categoriesof crisis scenario are analysed: threesystemic crisis scenarios (macroeconomiccrisis, upsets in the capital markets andalterations in payment systems), a specificcrisis scenario (reputational crisis) and acombined crisis scenario considered as a“worst-case scenario”. These scenariosaddress various timeframes and loss givendefault levels based on the nature anddepth of the crisis analysed. For each ofthe crisis scenarios, “survival” periodsare calculated (defined as the ability tofulfil acquired commitments), togetherwith sufficient liquidity levels to copesuccessfully with the crisis situationsconsidered. These analyses are used to

prepare the Liquidity Risk ContingencyPlan which contains an action plan foreach of the crisis scenarios established(systemic, specific and combined) andgives details on measures to be takenon a commercial, institutional andcommunications level to deal with thistype of situation. The Plan also includesthe possibility of using a series of sparereserves or extraordinary financingsources.

The ALCO monitors medium-term liquidassets on a monthly basis by analysingforecast time lags in the balance sheetstructure and verifies compliance withthe limits and operating lines of actionapproved by the Board of Directors. TheALCO makes proposals to the Boardof Directors on the optimum issues orfinancing or investment programmesto suit market conditions and theinstruments and terms needed to supportthe growth of the business. The ALCOperiodically monitors a series of indicatorsand warnings in order to anticipate aliquidity crisis and take the correctivemeasures, as laid down in the LiquidityRisk Contingency Plan. In addition, amonthly analysis is performed of thepotential liquidity levels under each of thehypothetical crisis scenarios.

Short-term liquid assets are managedto ensure that liquid assets are availableon the balance sheet at all times, i.e.minimising the structural liquidity riskinherent to the banking business. To assistwith this management process, a dailybreakdown of liquid assets by maturities ismade available by preparing projections offuture flows, which provides informationon the time structure of liquid assets at alltimes.

As part of this approach to managingliquidity risk, so that it can anticipatepotential needs for lendable funds, the”la Caixa” Group has a variety of ordinaryfinancing programmes that cover the

4.4. Managing liquidity risk

21,20819,638

TOTAL LIQUIDITY(Millions of euros)

09 10

6.9%of GroupAssets



various maturity periods to ensure that it

has adequate liquidity levels at all times:

• The Note Programme, with a principal

amount of EUR 12,000 million, provides

access to short-term funds.

• Renewal and extension of the

Simple Fixed-Income Securities Issue

Framework Programme, which ensures

the availability of long-term funds.

The principal amount of this issue is

EUR 25,000 million, of which

EUR 21,808 million were available at 31December 2010.

• In addition, as a prudent measure toprepare for potential stress on liquidassets or market crises, i.e. to copewith the contingent liquidity risk, the”la Caixa” Group has placed a series ofguarantee deposits with the EuropeanCentral Bank (ECB) through whichhigh levels of liquid assets can be madeavailable at short notice (ECB facility),currently standing at EUR 15,992million. The finance obtained from the

European Central Bank through the

various monetary policy instruments was

nil at 31 December 2010.

In short, the ”la Caixa” Group takes

advantage of the existing mechanisms

on financial markets to ensure that it has

adequate levels of liquid assets to meet

its strategic objectives, while taking into

account a balanced distribution of the

maturity dates of issues, thereby avoiding

concentration and diversifying the

financial instruments.

4.4. Managing liquidity risk (cont.)

SCENARIOS LIQUIDITY SOURCERISK OF FUNDS

CONTINGENT ECB FACILIT

RIS SPARE RESERVES

STRUCTURAL ORDINAR

RIS FINANCING

SPECIFIC

OR S STEMIC

CRISIS

ORDINAR

CONDITIONS

Seve

rity

+–

Likelihood– +

Serious or veryserious crisis

Minor ormoderate crisis

PROBABILISTIC DISTRIBUTIONOF THE SEVERITY OF LIQUIDITY RISK:Three severity or stress levels

Ordinary conditions

There is a continuum of possible situations involving the need for liquidity in the activities of ”la Caixa”

– Severity + Severity

+ Probabilityof occurrence

– Probabilityof occurrence

OUTLINE OF LIQUIDITY RISK MANAGEMENT

COMBINED CRISIS

Serious reputationaland systemic crisis

Minor systemiccrisis

SYSTEMIC CRISIS

Serious systemiccrisis

SPECIFIC CRISIS

Seriousreputational crisis

Dailyoperations

ORDINARY CONDITIONS

Seasonality



“MINIMISE THE OPERATIONAL RISKINHERENT TO ALL BUSINESS ACTIvITIES,BY MONITORING THE MAIN RISKS USING

QUALITATIvE AND QUANTITATIvETECHNIQUES”

Operational risk managementis based on specially qualifiedpersonnel, and the procedures,systems and controls in place.

Operational risk includes all the eventsthat could give rise to a loss causedby shortcomings in internal processes,human error, malfunctioning ofinformation systems and/or externalevents. This risk is inherent to all businessactivities and, although it can never bewholly eliminated, it can be managed,mitigated and, in some cases, insured.

Operational risk has become increasinglyimportant as a result of the greaterdependence of the banking businesson such factors as the intensive use ofinformation technology, outsourcing andcomplex financial instruments.

Management of this risk takes placeat the highest level. Management andthe Global Risk Committee define thestrategic lines of action and monitor theoperational risk profile, the main lossevents and the actions taken to mitigatethem.

There are two main lines of action:training employees so that they have theskills and information required to carry outtheir functions and systematic recurringreviews of the business and operatingprocesses, putting improvements andnew controls in place. In addition, wherenecessary, ”la Caixa” transfers the risk

to third parties by taking out insurancepolicies.

The ”la Caixa” Group is also developinga strategic project, promoted bymanagement and in keeping with Bank ofSpain proposals and regulations, for theimplementation of a single comprehensiveoperational risk measurement andcontrol model at the ”la Caixa” Group.Management at Group level covers allthe companies included in the scope ofapplication of Bank of Spain SolvencyCircular 3/2008.

The ”la Caixa” Group applies the standardmethod to calculate the regulatory capitalfor operational risk, with the intentionof progressing towards the advancedmodel which will be applied once theright conditions arise for its use and whenauthorised by the Bank of Spain. In thisregard, ”la Caixa” has an “OperationalRisk Management Framework” whichdefines the Group’s operational riskobjectives, policies, management modeland assessment methods.

The ”la Caixa” Group’s overall objectiveis to improve the quality of businessmanagement based on information onoperational risks, aiding decision-makingto ensure the long-term continuity of theorganisation and improving processes andthe quality of customer service, while alsocomplying with the established regulatoryframework and optimising capitalconsumption.

4.5. Managing operational risk

OPERATIONAL RISK MANAGEMENT MODELAT THE ”LA CAIxA” GROUP

Management Identification

Assessment

52.2%

3.9%

22.8%

0.8%5.0%

8.7%

6.6%

Practices withcustomers

Process performance,delivery andmanagement

Internal fraudExternal fraud

Impairment of tangibleassets

Systemfailures

Labour relations andsafety at work

DISTRIBUTION OF OPERATIONAL RISKEvENTS IN THE ”LA CAIxA” GROUP IN2010 BY RISK TYPE



The organisational model is based on thefollowing:

• Business and support divisions andsubsidiaries: responsible for theidentification, assessment, management,control and reporting on the operationalrisks relating to their activities.

• Operational Risk Unit: responsible forthe definition, implementation andstandardisation of the operational riskmanagement, measurement and controlmodel at the ”la Caixa” Group. It providessupport to the divisions and subsidiariesand consolidates the information formanagement reporting purposes. It formspart of the Credit Risk Methodology andModels Division within the Global RiskManagement Division.

• Internal Audit Division: responsiblefor supervising compliance withthe Management Framework andimplementation of established operationalrisk assessment, control and managementprocedures.

The operational risk management modeland policies establish an ongoing processbased on the following:

• Identification and detection of all currentand potential operational risks, basedon qualitative techniques (the opinionof process experts and risk indicators)and procedures for the management ofoperational risks, in order to define the”la Caixa” Group’s operational risk profile.

• uantitative assessment of operationalrisk based on actual data on lossesrecorded on the database of operationalevents.

• Active management of the Group’srisk profile, which implies establishinga reporting model at all levels of theorganisation to assist with decision-making aimed at mitigating the risk(setting up new controls, developingbusiness continuity plans, reengineeringprocesses, taking out insurance againstpotential contingencies and others), whileanticipating potential causes of risk andmitigating their economic impact.

In 2010, the new process for qualitativeidentification of risks through self-appraisals was extended to most of theGroup’s divisions and subsidiaries. Inaddition, in 2010 the implementation ofrisk identifiers ( RIs) was consolidated,thus establishing periodicalcommunication with the divisionsand subsidiaries so as to compare theinformation they provided. The OperationRisk Management Framework was alsoupdated to simplify its structure, butretaining the management principlescontained therein.

Progress also continued to be made inbuilding the “loss events database” andrecognising and monitoring operationallosses, especially those classified assignificant (operational events withthe biggest economic impact), to beused, together with the qualitativeinformation, for proactive operationalrisk management, so as to anticipatethe possible causes of risk and reduceits financial impact, with the resultingadjustment of capital requirements.

4.5. Managing operational risk (cont.)

EvENT CAPTURE PROCESS

Loss eventsdatabase

Manual input of significant operational events

Automatic collection of recurring loss events

Accounting recordsAccounting reconciliation / identification process



The regulatory compliance policy of the”la Caixa” is based on the principles ofintegrity and ethical conduct, which formthe cornerstones of the ”la Caixa” Group’sactivities. In addition, following transposalinto Spanish law of the Markets inFinancial Instruments Directive (MiFID), theregulatory compliance function appears asa legal requirement for financial institutionsin the following legislation:

• Securities Market Law 47/2007, of 19December, amending Law 24/1988, of28 July.

• Royal Decree 21 /2008, of 15 February,on capital of financial institutions.

• RD 217/2008, of 1 February, oninvestment services companies.

The mission of the regulatorycompliance function

The mission of the ”la Caixa” Group’sregulatory compliance function is gearedtowards managing the risk of penaltiesimposed by laws or regulations andfinancial, material or reputational losseswhich may be suffered by the ”la Caixa”Group upon violation of laws, regulations,regulatory standards or codes of conduct.

This mission involves carrying out a seriesof activities including most notably:creating, disseminating and implementinga compliance culture at all levels ofthe ”la Caixa” Group; advising seniormanagement on regulatory complianceissues, preparing and/or promotinginternal standards and codes or, wherenecessary, improving them; and definingeffective procedures and proposingappropriate controls. In this regard, anyrisk of noncompliance must be detectedand, where necessary, proposals forimprovement drawn up and monitored,and any potential deficiencies withrespect to professional ethics must beexamined.

To attain these objectives, theRegulatory Compliance Division issuesregulatory compliance reports, monitorsimprovements and carries out theactivities set out in the Internal Rules ofConduct of the Securities Market.

These improvements are monitored ona monthly basis until their resolution.It should be noted that the regulatorycompliance function is universal in natureand includes all of the business activitiesof the ”la Caixa” Group.

0

10

20

30

40

50

60

70

Integrity Securitiesmarket

MIFID Productsand servicesto customers

Preventionof moneylaundering

and financingof terrorism

Corporategovernanceand capitaladequacy

Personaldata

protection

Others

Pending legal/administrative definitionPlanned

Not yet startedIn progress

Under examinationCompleted

IMPROvEMENT MEASURES

4.6. Regulatory compliance risk management

COMPLIANCE REPORTS

Regulations reviewedInternal regulations reviewedCompliance obligations analysedBusiness divisions / Head officecontacted

44108106

35

Internal Rules of Conductof the Securities Market

In October 2008 the Board of Directorsapproved a new version of the InternalRules of Conduct (IRC) regarding theSecurities Market to bring them into linewith the latest changes in legislation and, inthis respect, various activities were carriedout in 2010 to comply with the code:

• Additions were made to the contentsof the dedicated intranet website onregulatory compliance which containsinformation on the rules and codesof conduct of ”la Caixa” and on allactivities carried out in the area ofregulatory compliance and other issuesof interest to all employees.

• The Inventory of Separate Divisions(departments or work groups which,due to the nature of their duties, mayhave access to privileged information)was updated and periodical tests carriedout on the functioning of their barriers(physical and logical) to prevent unduetransfer of privileged information.

• A policy regarding conflicts of interestin ”la Caixa” was applied, and CECAmethodology was introduced formanaging conflicts of interest anddetecting scenarios of potential conflictsof interest in each Division.

• Training activities related to theIRC: “Detecting and reporting stockmarket transactions suspected ofbeing unlawful” were carried outfor employees (Intranet RegulatoryCompliance, “Training” section).

2010 Financial Report of the ”la Caixa” Group5. High financial strength


5. High financial strength5.1. Excellent liquidity levels

The Group’s excellent liquidityposition enables it, with prudentmanagement, to guaranteethe growth of the business andrespond to customers’ creditneeds.

Conservative proactive management ofliquidity levels has always been one of thedistinguishing features of the ”la Caixa”Group, enabling it to ensure the growthof the Group’s business and respondto its customers’ credit requirements.Prudent liquidity management, coupledwith the objective of maximising returns,is the reason behind the increase in theinvestments in assets with the highestsolvency, which may be turned into cashimmediately, while also reducing exposurein the interbank markets.

The ”la Caixa” Group maintained veryhigh liquidity levels in 2010, to reach EUR19, 38 million at 31 December, includingthe credit facility with the EuropeanCentral Bank amounting to EUR 15,992million.

The finance obtained from the EuropeanCentral Bank through several monetarypolicy instruments was nil at 31 December2010.

Total liquidity accounts for .9% of the”la Caixa” Group’s total assets,comfortably exceeding the objectiveset in the 2007-2010 Strategic Plan ofmaintaining a minimum level of 5%.

Liabilities to customers account for 70%of the Group’s sources of financing,providing it with considerable stabilityand reflecting our customers’ trust in us,deposits from credit institutions accountfor 9% and institutional issues for theremaining 21%.

In addition, dependence on internationalinstitutional markets is very limited since”la Caixa” actively manages the issues,distributing maturities and avoidingsignificant concentrations in particularyears. Proof of this are the maturitiesscheduled for 2011 and 2012, totallingEUR 7,288 million and EUR 4, 4 million,respectively. Therefore, in 2010, in thecontext of a global financial crisis and aclimate characterised by a general lackof confidence similar to the previousyear, the ”la Caixa” Group demonstratedits considerable capacity to attract theinterest of domestic and internationalinvestors, obtaining up to EUR 5, 52million on the capital markets.

“MAINTAIN HIGH LIQUIDITY LEvELS”

Liabilities to customers

Deposits from creditinstitutions

Institutionalissues

DIvERSIFIED THIRD-PARTY FINANCINGSOURCESAt 31 December 2010

9%

70%21%

21,20819,638

09 10

6.9%of Group assets

TOTAL LIQUIDITY(Millions of euros)



5.2. Excellent capital adequacy levels

The ”la Caixa” Group’s soundcapitalisation

The own funds attributable to theGroup amounted to EUR 17,421 million,up 4.3% on 2009. The balance wasincreased in 2010 as a result of the profitattributable to the Group (EUR 1,307million) and reduced mainly by the portionof 2009 profit allocated to WelfareProjects for 2010. In addition, the”la Caixa” Group’s equity, which includesattributable own funds, non-controllinginterests and valuation adjustments,amounted to EUR 21,980 million at 31December 2010, up 2.7% on December2009.

The ”la Caixa” Group’s eligible capitalat 31 December 2010, calculatedin accordance with the guidelinesestablished by Bank of Spain Circular3/2008, of 22 May, in addition to ownfunds (less the contribution to be made toWelfare Projects in 2010), includes otheritems such as non-controlling interests(EUR 2,524 million), preference shares(EUR 4,948 million) and subordinateddebentures (EUR 5,938 million), subjectto the limits set forth in the Circular.However, eligible capital excludesintangible assets, consolidation goodwill,significant investments in unconsolidatedfinancial institutions and insuranceentities, as well as any excess amountsin qualified investments in non-financialentities.

Risk-weighted on-balance-sheetassets fell considerably withrespect to total assets.

At 31 December 2010, after each balancesheet item had been weighted accordingto its exposure to risk pursuant to Basel II,the figures showed an estimated totalreduction of 54% and of 93% in thememorandum items.

In 2010 risk-weighted assets (BIS II)increased by 3.8%.

The required minimum capital level iscalculated by reference to credit andcounterparty risk, currency risk, therisk associated with financial assetsand liabilities held for trading, the riskassociated with the investee portfolio andoperational risk. Practically all the Group’scapital requirements are to cover creditand counterparty risk.

Basel II

The application of the Basel II Accord,transposed to Spanish legislation byBank of Spain Circular 3/2008, hashad a significant positive effect on themanagement of the ”la Caixa” Group’scapital adequacy levels. The regulationsare structured around three pillars.

With respect to Pillar 1, minimum capitalrequirements, the ”la Caixa” Group hasbeen applying internal models to calculatemarket risk since December 2007and, with respect to credit risk, to themain asset categories since June 2008,following the required authorisations bythe Bank of Spain. The ”la Caixa” Groupcontinues to strengthen its risk andcapital adequacy management processesand tools (see section 4. Active riskmanagement).

In accordance with the guidelines ofPillar 2, the supervisory review process,the ”la Caixa” Group has designed acapital self-assessment process whichaims to ensure an appropriate relationshipbetween its capital and its risk profile.The results of the capital self-assessmentprocess were included in the yearly capitalself-assessment report and confirmedthe ”la Caixa” Group’s high level ofcapital adequacy, both in regulatory andeconomic terms.

As regards Pillar 3: market discipline, the”la Caixa” Group publishes annually,as laid down by Circular 3/2008, thedocument entitled “Information ofPrudential Relevance”, which contains

“KEEP CAPITAL AT A LEvEL ENSURINGSUSTAINABLE GROWTH”

17,421

09

16,696

08

15,619

OWN FUNDS(Millions of euros)

10

100% 100%

7%

WEIGHTED RISK AT 31/12/10

On-balance-sheet assets Memorandum items

Risk-weightedassets andmemorandum items

Risk reductionresulting fromweighting

46%

2010 Financial Report of the ”la Caixa” Group5. High financial strength


information on capital, exposures to riskand risk assessment processes at the”la Caixa” Group, and aims to providemarket players with an assessment of theGroup’s capital adequacy.

Self-financing of organic growth

Core capital stands at 8.6%.

Core capital (capital and reserves, netof goodwill and other intangible assets)stood at EUR 14,03 million, with aratio of 8. %. Tier 1 capital totalled EUR1 ,239 million, representing 9.9% of risk-weighted assets.

The ”la Caixa” Group’s eligible capitaltotalled EUR 19,198 million at 31

December 2010, which gives a capitalratio of 11.8%, with an estimated excessof EUR ,130 million over and above theminimum capital requirement of 8%.

In order to strengthen its high capitaladequacy level and maintain its positionamong the best in the industry, the”la Caixa” Group launched one issue inthe first half of 2010, totalling EUR 3,000million of subordinated debt.

The capacity to generate profitsthroughout 2010 enabled the Groupto finance in full the additional capitalrequirements arising out of the evolutionof the ”la Caixa” Group’s recurringbusiness, the acquisition of Adeslas andthe absorption of Caixa Girona.

9.9%8.6%

11.8%

CAPITAL RATIO (BIS II RATIO)

10

Core capital Tier 1 Tier 2

CORE CAPITAL EvOLUTION IN 2010 (%)

SubtotalDec. 2009 Dec. 2010

Self-financing

Organicgrowth

PurchaseAdeslas

CaixaGirona

8.7 8.69.3 (0.4) (0.3)0.6

“SURPLUS CAPITAL: EUR 6,130 MILLION”

Capital adequacy - BIS II Ratio

(Amounts in millions of euros) 31/12/2010 (*) 31/12/2009 CHANGE

Core capital 14,036 13,735 2.2%Ratio 8.6% 8.7% (0.1)

Preference shares 4,948 4,898Tier 1 capital 16,239 16,349 (0.7%)

Ratio 9.9% 10.4% (0.5)Tier 2 capital 2,959 902Total eligible capital 19,198 17,251 11.3%

Ratio BIS 11.8% 11.0% 0.8Minimum capital requirement (8% ratio) 13,0 8 12,584Surplus capital 6,130 4,667

Ratio 3.8% 3.0% 0.8Risk-weighted assets 163,348 157,300 3.8%

( ) Estimated figures.

5.2. Excellent capital adequacy levels (cont.)



“vERY GOOD RATINGS DESPITECOMPLEx ECONOMIC CLIMATE”

The ”la Caixa” Group’s credit ratingsremain high, despite the adverseeconomic climate in Spain, whichhighlights the Institution’s strong marketpositioning, its capacity to generaterecurring profits and its financial strengths.

• Moody’s “Aa2” long-term and “P–1”short-term,

• Standard & Poor’s “A ” long-termand “A–1” short-term,

• Fitch “A ” long-term and “F1” short-term.

The agencies rate very highly thesuccess of the Group’s strategy and its

sound management, and particularly

emphasise its commercial strength due

to the excellent positioning of ”la Caixa”

in Spain, which secure the good

performance of the banking business.

The quality of the Institution’s assets and

its financial strengths, together with the

high liquidity and capital adequacy levels,

are highlighted by the agencies as

fundamental factors explaining the

Group’s very good ratings.

As part of the ”la Caixa” Group’s

reorganisation process, the ratings of the

three agencies are currently on review.

5.3. ”la Caixa” Group very good ratings

SHORT LONG”la Caixa” TERM TERM

Standard & Poor’s A–1 A+

Moody’s P–1 Aa2

Fitch F1 A+

As of March 2011

With people and their projectsSustainabilityExcellence in serviceCommitment to society

Report on ”la Caixa” Corporate ResponsibilityExecutive Summary


Dialogue with stakeholders

It is essential for ”la Caixa” toascertain the expectations of thepeople and institutions it dealswith and thus lead the way in itsCorporate Responsibility policies.

In the 2010 Corporate ResponsibilityReport, the Institution features the mainprogress made in the year in additionto including the priority issues for itsstakeholders.

The issues that appear in this diagram are covered in greater detail in the 2010 Corporate Responsibility Report. A more extended versionmay be consulted at: www.lacaixa.es/responsabilidadcorporativa

The issues which emerged from this consultation process are included in the following diagram:

High IV III

LowLow HighImportance for stakeholders

Emerging

I II

Urgent

Mat

urity

ofth

eth

eme

Labour practices

General Necessary

Satisfaction and Service for Customer

Anti-crime measures Welfare Activity

Codes of Conduct / Ethical Behaviour

Innovation of Products and Services

To determine the nature of these issues,the methodology established by theAA1000 standard was used to conductinterviews and surveys with employeesfrom the Institution, corporateresponsibility experts in Spain andrepresentatives of the ”la Caixa”stakeholders.

Solvency

Financing for customers

With people and their projects


A sound institution

”la Caixa” is one of the mostsolvent financial institutions inSpain and Europe.

• The European Banking SupervisorsCommittee (EBSC) stress test confirmedthe soundness of ”la Caixa”, even in themost adverse macroeconomic scenario.

• The main rating agencies maintainedhigh ratings for ”la Caixa” in 2010.

• The level of liquidity stood at 19,638million euros with practically the wholeamount being immediately available.

”la Caixa” boasts a high level ofsolvency, with core capital totalling8.6%

• Having this high level of liquidity hasenabled the institution not only toconfront the growth of its business withsecurity and improve its position comparedto rivals but also to its customers’financing needs.

Further information at: www.emprendedorxxi.com / www.caixacapitalrisc.es

Solutions in a complex economic environment

”la Caixa” managed to keepup its support for the country’sproductive fabric and strivedto provide solutions forcustomers in a year markedby an unfavourable climate.

The credit portfolio for customers wasup 11,520 millions (+6.5%), reaching189,546 millions with 939,463 operationsin the last 12 months and 99,491 millioneuros in loans were granted.

With the individual customers

”la Caixa” has an Aid Plan for Individualsand families with mortgages who areexperiencing temporary situations oflow incomes. In 2010 the total volumeof contracts signed in one of the Plan’soptions stood at 27,432.

10.5 million customers trust the”la Caixa” management model andare a stimulus to keep on workingto provide them with a better andmore comprehensive service

Support for entrepreneurs

In 2010 ”la Caixa” strived to provide aresponse for the financial needs of self-employed professionals and companies:

• ”la Caixa” was ranked the third largestinstitution to collaborate with the OfficialLoan Institute (ICO), granting over 40,000loans to companies and self-employedprofessionals worth 1,579 million euros.

• ”la Caixa” boasts 820 expert managersto attend to SMEs and 83 companycentres to provide service to medium andlarge-size companies.

• ”la Caixa” accompanies businesscustomers in their expansion abroadand has 3 operating branches and 5representation offices in Europe, Africaand Asia. In 2010 representation officeswere opened in Dubai and New Delhi.

• ”la Caixa” carries out an array of supportand financial activities, accompanyingnew company initiatives with a potentialto grow. Through Caixa Capital Risc”la Caixa” foments innovative projectsusing venture capital tools. In 2010,the committed investment stood at7.5 million euros.

• The EmprendedorXXI initiative hasseveral programmes to set up companiesin specific sectors, to aid researchersand experts to successfully launch theirbusiness project.

• ”la Caixa” has created theEcoEmprendedorXXI Programme tofacilitate the founding and consolidationcompanies in the clean technologiessector.

Main challenges for 2011

• To maintain the levels of financingfor individuals, self-employedprofessionals and companies.

• To open new representation officesin Algeria, Singapore and Egyptto support companies expandingabroad.

• To increase the number ofaccompanied companies throughthe various EmprendedorXXIinitiatives.

• To set up a new programme titledEmprendedorXXI.net, specialisedin information technologies andInternet.



MicroBank

From when it was set up in 2007to the end of 2010, MicroBank, thebenchmark in Europe’s microloansector, has financed a total of93,897 entrepreneurial and familyprojects.

MicroBank aims to promote financialinclusion and social cohesion by grantingmicroloans.

• This is aimed at self-employedprofessionals, small employers andentrepreneurs to set up, expand orconsolidate their projects, together withpeople and families with low incomesor with difficulties to use the traditionalloan systems, and is found in over 5,400branches of ”la Caixa”. Since 2010, smallcompanies have also been able to use thisform of financing.

• Since it began its activity 588.9 millioneuros have been invested.

• To conduct its activity, it receives supportfrom the European Investment Fund andthe Council of Europe’s Development Bank.

MicroBank Ethical Fund

MicroBank works to promote SociallyResponsible Investments as a tool tocontribute to sustainable development.

In 2010, the MicroBank Ethical Fund wasset up as an ethical cooperation investmentfund which evolved from the merger ofFonCaixa Europe Socially ResponsibleCooperation and FonCaixa Private ActiveEthical Fund.

• This fund includes ethical, social andenvironmental principles when selectingassets for its portfolio, which aredetermined by an Ethics Committeemade up of independent experts.

• 25% of the commission to manage theassets is allocated to aiding projects byNGOs and not-for-profit institutionsdesignated by the contributors

• The ”la Caixa” Foundation contributes anequivalent amount to that granted bythe fund to charities every year.

Microloans benefit labourinclusion and, since 2007,MicroBank is estimated tohave contributed to creating orconsolidating over 30,000 jobs.


• To grant microloans worth 550million euros in the next two years.

• To achieve 85,000 microloans inportfolio in 2011 with an investmentof 425 million euros.

• To foment Socially ResponsibleInvestment through the MicroBankEthical Fund.

Further information at: www.microbanklacaixa.com

MICROLOANS GRANTED

08 10

137.120,641

36,845212

09

32,008176.8

Microloans grantedAmounts paid out in millions of euros



Sustainable investment and financing

”la Caixa” considers the socialand environmental implicationsof its activity as part of its socialcommitment

Sustainable financing

”la Caixa” believes that the projects itfinances should not only be economicallyviable but also sustainable from a socialand environmental viewpoint.

• Since joining the Equator Principles in2007, approving finance projects worthover 10 million dollars requires a previouspositive assessment, which includessocial and environmental factors in theanalysis.

• In 2010 ”la Caixa” participatedin 55 finance projects worth a totalof 9,980 million euros.

• ”la Caixa” passed a loan investmentpolicy related to the weapons sector, inpursuance of which it will not finance theproduction or exporting of weapons. Norwill it establish commercial relationshipswith companies related to the productionor sale of antipersonnel mines and/orcluster bombs.

”la Caixa” promotes projects that respectthe environment as a way to encouragelong-term environmental sustainability.

• In 2010 ”la Caixa” financed 20renewable energy projects in conjunctionwith other institutions, worth a totalof 2,458 million euros.

Investing responsibly

• ”la Caixa” markets the SAM SustainableClimate fund, which promotes renewableenergies and focuses on fighting climatechange.

• The ”la Caixa” employee pension fund,which has adhered to the United NationsPrinciples of Responsible Investment (PRI)since 2008, has invested 80,18 millioneuros in socially responsible funds(3,28% of the total amount investedand 8,05% of the total equity).


• To apply a procedure to assesssocial and environmental risks ofsyndicated operations for amountsover 7 million euros.

• To raise awareness and boost themarket penetration of SociallyResponsible Investment incollaboration with InverCaixaand Private Banking.

18

7 8

Type C

5

17

0

Type B

FINANCE PROJECTS/SECTOR

Energy InfraestructurebusinessReal estate

Sustainability


Environmental policy and management

The commitment of ”la Caixa”to respect the environmentencompasses all its projects,services and products in addition tothe Welfare Projects programmesand boasts the involvement ofemployees, subsidiaries andcollaborating companies.

The ”la Caixa” environmental policyand management is coordinated by theEnvironmental Committee, which worksto lower the Institution’s direct and indirectimpact on the environment.

• Electricity consumption was 7.01% lowerthanks to several initiatives. Amongthese were awareness-raising campaignsfor employees, automatic standby ofcomputer equipment and installing lightsensors in rooms which house the DataProcessing Centres (DPC).

• In 2010, the number of branchesmanaged remotely reached 1,900. Thisinvolved a one-switch operation to avoidthe use of electricity outside work hours.

• Teleconference systems together withother systems enabled us to reduce thedistance travelled by 1,311,314 km,which represented a saving of 322.7tonnes in CO

2 emissions.

• 99.1% of the paper used was recycledmaterial and lowered the total use ofpaper by 5.2%.

• In 2010, the number of customers withdigitalised mail reached 2.85 million andthe number of letters sent was reducedby 48.2 million compared to those sentin 2009.

The EcoCaixa space provides thegeneral public with advice on theenvironment and enables themto check the main initiatives of”la Caixa” in terms of sustainability.


• To promote new initiatives foremployees regarding goodenvironmental practices.

• To reduce the use of paper by 5%,the use of electricity as a whole andCO2 emissions in journeys.

• To continue the process of buildingnew, more efficient DPC (DataProcessing Centres) which use lessenergy.

Further information at: http://portal.lacaixa.es/ecocaixa/ecocaixa_es

Sustainability


Innovative, more accessible and secure

”la Caixa” works to guaranteeexcellence in service and believesin continuous innovation, whichhas enabled it to develop newways to access its productsand services in addition toguaranteeing security intransactions.

Closeness and accessibility

”la Caixa” provides access to its productsand services through an array of channelswhich include an extensive network ofbranches and cash machines and worksso that these channels can be used by thelargest number of people as possible.

• The largest network of branches in Spain,with branches in at least 100% oftowns with over 20,000 inhabitants.At the close of the year ”la Caixa” had5,409 branches, 83 more than in 2009.

• ”la Caixa” has a full range of servicesavailable 24 hours a day throughchannels such as the internet, mobiletelephone, digital television and severalpioneering applications for products suchas iPad and iPhone.

• In 2010, the AQmetrix consultingcompany rated ”la Caixa” as the financialinstitution with the best level of serviceprovided via internet in Spain.

• ”la Caixa” continued to work to promoteaccessibility and, in 2010, adapted 33branches and eliminated architecturalbarriers for people with reduced mobility.

• The Serviticket website and operationshave been adapted for the visuallyimpaired.

Innovation and security

”la Caixa” is committed to on constantinnovation to provide its customers withnew solutions and develop more efficientprocesses.

• Through its CaixaProtect system, usedby 6 million customers, over 8 millionfree alerts were sent to customer mobilephones, informing them about anyoperations featuring large quantities ofmoney.

• ”la Caixa” conducted a pilot paymentscheme in retail outlets via mobiletelephone based on radio frequencycommunications, a technology whichprovides a faster purchasing process forcustomers and businesses.

• ”la Caixa” has its own online shop,CaixaMóvil Store, the first with bankingapplications for mobile telephones inthe world, enabling its customers todownload over 36 free applications.

• ”la Caixa” works to constantly improveits Línea Abierta and has implementedover one hundred of the best suggestionssubmitted by customers.

TRANSACTIONS MADE THROUGHELECTRONIC CHANNELS

Línea Abierta

CaixaMóvilCash machines

23%526.9 million

74%1,729.1 million

3%77.5 million

”la Caixa” invested a total of 155.9million euros in technology, ofwhich 29.32 million were spent onR&D and innovation.


• To increase the number ofoperations and sign languagesavailable in videos to aid deaf andmute persons at cash machines andwith the Línea Abierta.

• To consolidate the INREDIS project(Interfaces of links between theSurroundings and HandicappedPersons) in collaboration with theONCE.

• To be first in the AQMetrix ranking,which measures the quality of theservice, in internet banking andmobile banking.

Further information at: http://portal.lacaixa.es/infocorporativa/accesibilidad_en.html

Excellence in service


Better service every day

”la Caixa” works throughpersonalised management andquality to guarantee excellencein service and maintain trust andleadership, which constitute,together with social commitment,its corporate values.

Quality Improvement Plan

With the aim of improving the ratingreceived by branches in terms of quality,”la Caixa” developed a QualityImprovement Plan in 2009 which wasimplemented in 2010.

• In 2010 the Active Quality Portal was setup on our corporate intranet with theaim of collecting information related toquality in one single space and to sharegood practices among employees.

• Quality workshops were held wherebranches, rated the best by theircustomers according to the satisfactionsurveys conducted, “supervise” brancheswhich need more improvement.

• A faster, more effective service andthe wide range of electronic channelshave enabled a reduction in waitingtime by 44%.

In 2010 customer complaintsfell by 35% compared to theprevious year


• To adopt general measures to raisethe effectiveness of managingsuggestions received: from 2011branches may check online thequality of response to suggestionsmade regarding improvements.

• To upgrade the ”la Caixa”anticorruption and anti-briberypolicy.

• To pass a new commercialcommunications policy.

8.38.5 8.4

LíneaAbierta

8.98.7 8.7

2008 2009 2010

8.2

Companies

8.08.3

Individuals

SATISFACTION RATE OF CUSTOMERS

Cash machinesCash machinesarea

SATISFACTION SURVEYS

8.78.7 8.78.38.2 8.1

Excellence in service


A great team

”la Caixa” applies personnelpolicies on based on fomentingequality and diversity, work-lifebalance, training and professionaldevelopment to stay as leader as asource of attracting talent

The 28,651 people who work in the“la Caixa” Group constitute its main asset,and the Institution works to guaranteeits labour policies promote employees’personal development and welfare.

• In 2010 ”la Caixa” incorporatedpersonnel from Caixa Girona in theworkforce with the premise to conservejobs by implementing relocations andearly retirement when possible.

• ”la Caixa” remained at the topof the list in the employees ranking ofthe Merco Marcas Financieras Award2010, particularly highlighting its talentmanagement.

• In 2010 a skills appraisal process was setup for people in a management post.

• The Protocol to Prevent, Deal withand Eliminate Sexual Harassment andMobbing came into force by means of afree telephone service and an e-mail boxwhich collects queries and complaints.

• Virtaula, the ”la Caixa” distance learningcommunity, managed to generate over500 blogs, 300 forums, 286 videos and alibrary with over 3,500 documents, mostcreated by its employees.

The “Másfamilia” foundationaccredited ”la Caixa” as a FamilyResponsible Company (FRC).acknowledging its aim to fosterwork-life balance and equalityfor its employees.

Safety and health

• ”la Caixa” boasts a Safety and HealthManagement System certificate incompliance with the OSHAS 18001international standard which certifies theexcellence of its preventive system.

• The instruction was implemented toassess and act in situations of hold-ups and violent acts and to protectparticularly sensitive employees andmaternity and breast feeding.

NUMBER OF EMPLOYEES IN THE”LA CAIXA” GROUP AND ”LA CAIXA”

08 10

27,81826,056 25,288

28,651

09

24,94427,505

”la Caixa””la Caixa” Group

PERCENTAGE OF WOMEN ON THEMANAGEMENT TEAM

08 10

12.2014.58

09

14.60


• To progress in applying the profilesof workplace skills to cover most ofthe workforce.

• To create a Leadership Centre tofoment managers’ professionaldevelopment.

• To pass an Equality Plan to beapplied generally.

• To spread the CorporateResponsibility course amongemployees.

Commitment to society


Welfare projects, closer to people

”la Caixa” kept up its commitmentto society by allocating 500 millioneuros to its Welfare Projects, ofwhich 67% were aimed at socialand care programmes.

In 2010, the Welfare Projects were aimedmainly at programmes which seekto contribute to improving peoples’living conditions and facilitate both theirintegration and development as a way forsociety to progress.

• The CaixaProinfancia programme,aimed at comprehensive promotion anddevelopment of children, has helped over165,000 children under 16 years old atrisk or in a situation of social exclusion,since it was set up until the end of 2010.The accumulated investment reached 100million euros.

• The programme for the Elderly is theoldest of the Welfare Projects. Its aim is tocontribute to healthy ageing and preventsituations of dependency.

• In two years the programme to provideIntegrated Care for Very Ill Peopleattended 15,342 patients and 24,896families with support provided by30 multi-disciplinary teams.

• ”la Caixa” kept up its commitment withGAVI Alliance, the international alliancewhich fights child mortality in the mostunderdeveloped countries. The Institutionhas contributed 11 million euros overthree years, which has enabled 1.2 millionchildren to be vaccinated.

• ”la Caixa” set up its InterculturalCommunity Relations Programme, towhich it allocated 3 million euros withthe aim of creating a model of communityinvolvement as a reference to managecultural diversity.

• Through its Affordable Housingprogramme it worked to attend theneeds of groups with difficulties toafford a home. In late 2010 there wereover 1,846 houses managed and940 more under construction.


• To promote commitment tothe needs of society in termsof overcoming exclusion andcreating job opportunities forunderpriviledged groups, throughIncorpora.

• To foment social cohesion andcoexistence in the communitythrough the new InterculturalCommunity Relations Programme.

• To have, at the end of 2012, over2,800 managed affordable renthouses for the young and elderly.To provide 955 houses awarded toand managed for families with lowincomes by late 2012.

• To consolidate both its research andtraining programmes and projectsto benefit knowledge and spreadculture.

Further information at: www.obrasocial.lacaixa.es

DISTRIBUTION OF INVESTMENT BY PROGRAMME

Welfare programmes

Cultural programmesEnvironmental and scientific programmes

Educational and research programmes

13%

14%67%

6%



Promoting Corporate Responsibility

”la Caixa” believes that spreadingresponsible principles andpractices in its enviroment formspart of its social commitmentto make headway togethertowards progress in social andenvironmental terms.

Among employees

”la Caixa” boasts a Corporate VolunteersProgramme which channels all the interestin aid projects shown by its employees.

• Our 3,286 volunteers carried out1,546 actions, which reached83,659 beneficiaries.

• ”la Caixa” invested 328,100 eurosin the programme.

• In 2010, in collaboration with theInstitution’s customers, 205.9 tonnesof food were collected for theunderprivileged and 81,000 books foreducation projects in Latin America.

• Through the Espacio Solidario over1,000 employees contributed over78,500 euros to four aid projects.

Among customers and societyin general

• ”la Caixa” customers may take part inseveral aid projects:

• Through the Aid Deposits which allowcustomers to choose the percentage ofnet interest they wish to donate to fourNGO projects.

• By donating Puntos Estrella, 551,000euros were allocated this way for aidprojects in 2010.

• The Institution offers Spanish companiesseveral projects concerned withCorporate Responsibility, such as theBusiness Alliance for Child Vaccination.26 companies donated over 166,000euros in 2010.

• The ”la Caixa” subsidiaries presented itsfirst Communication on Progress in 2010,which summarises the progress maderegarding the principles of the UN GlobalCompact.

• ”la Caixa” joined the National FinancialEducation Plan promoted by the SpanishSecurities and Exchange Commission(CNMV) and the Bank of Spain tocontribute to improving financialknowledge among the population.

Among suppliers

”la Caixa” extended its commitment tocorporate responsibility to its supply chain.

• In 2010 a Master Plan was definedto control suppliers with the aim ofimproving transparency and rigour incontracts, which will be implemented in2011.

• The total amount of purchases fromsuppliers reached 1,078.4 million euros,with 90.87% complying with the agreedpayment period.

• PromoCaixa carried out auditing onmanufacturers of items made in Chinathat are used in important campaigns,except when these were suppliers ofrenowned brands, with no incidentsworthy of comment.

At the close of 2010, over13,600 companies werecollaborating with the IncorporaProgramme for Labour Integration,which has contributed to findingjobs for 38,821 people at riskof social exclusion.

Main Challenges for 2011

• To spread the Business Alliance forChild Vaccination among companiesin Spain.

• To increase the chance to collaboratein the Espacio Solidario projects in allsociety.

• To improve the control ofsuppliers through a new processof registration and standards,fomenting respect for the principlesof the UN Global Compact.


Social ProgrammesEducational ProgrammesScience, Research and Environment ProgrammesCultural Programmes2010 Data of ”la Caixa” Welfare Projects

Annual Report ”la Caixa” Welfare Projects

Introduction

Intercultural Community Relations

Fighting Child Poverty

Integration of disadvantaged groups into Societyand Work

Integrated Care for Very Ill People

Active and Socially Integrated Elderly People

International Division: commitment beyond our borders

Affordable Housing

Aid for projects of social organisations to assistdisadvantaged groups

Social Programmes

Social Programmes


Social Programmes

The most defining feature of”la Caixa” has been its commitmentto people since it was firstestablished over one hundredyears ago. This became even moreimportant in 2010, a year that wasmarked by an adverse economicenvironment. The Welfare Projectshave increased their efforts tocontribute to meeting the mostpressing needs. As a result of this,the Institution devoted a totalof 326 million euros to its socialprogrammes, 71% of its overallbudget of 463 million euros.

Main lines of action in 2010

Unemployment, the economic climate,health and ageing are just four of themain concerns quoted most frequentlyby our citizens. Thus in 2010, the WelfareProjects devoted a large proportion ofits resources trying to respond to eachof these. Hence, the Incorpora project,aimed at promoting employment amonggroups with difficulties, including trainingprisoners, and the CaixaProinfanciaproject to improve opportunities forchildren in a situation of poverty, aretwo of the Institution’s most importantinitiatives. Care for patients with

serious illnesses is also one of the mostinnovative ambits of work, as well aspromoting the active ageing of ourelderly, to which the Institution has paidspecial attention since its origins.

In addition to these four strategic areasof action, Welfare Projects offers awide range of social initiatives aimed atproviding solutions to some of today’smost pressing problems.

The search for greater social cohesionencouraged the launch of a newIntercultural Community Relationsprogramme, aimed at promotingharmony in seventeen townsand neighbourhoods with a highconcentration of cultural diversity.

The building of affordable rented housingfor the young and elderly received a newboost in 2010 with the resumption ofdevelopments which had stopped due tothe crisis, by turning them into affordablefamily housing with rents considerablylower than market prices.

Granting microloans also generatesopportunities for entrepreneurs withfunding difficulties. Each loan is estimatedto generate an average of 2.5 jobs.

Support for social and economicdevelopment in low income countries andpromoting infant vaccinations, with overone million children vaccinated to date,is promoted through the InternationalDivision, the Institution’s commitmentbeyond our borders. As part of theseobjectives, ISGlobal Barcelona, promotedby the Welfare Projects in 2010, hasas one of its main aims to improve thehealth of the most vulnerable groupsand break the vicious circle of illness andpoverty in which they are trapped.

With these programmes, the Institutionaims to have an impact on some ofsociety’s most pressing problems today.

Vocation for cooperation

In addition to providing an answer toproblems that have arisen in society inrecent years, ”la Caixa” Welfare Projectsalso has other, more long-standingprogrammes.

In operation since 2005, the programmeto support and foster Volunteer Workencourages the involvement of all theemployees of the ”la Caixa” Groupin Welfare Projects and contributes tooptimising human resources, materials

For years Moisés has been a volunteer of”la Caixa” and has organised activities forthe mentally disabled, such as Rocío, whoenjoys being able to walk the Caminode Santiago. Pablo has followed in hisfather’s footsteps and also devoteshis time to helping others...

Social Programmes


and management systems of socialentities working with volunteers. Withinthis Corporate Volunteer Work Scheme,3,286 current and early-retired employeesof ”la Caixa”, along with family membersand friends, work actively in solidarityinitiatives. Currently this figure is over13% of the total staff of the Institution.At present ”la Caixa” has 42 provincialassociations of volunteers. Among themost noteworthy actions promoted isthe collection of over 205 tonnes offood for the most underprivileged in lateNovember.

The Let’s talk about drugs initiativereceived the Queen Sophia Prize for thefight against drugs in 2010, awarded bythe Red Cross Foundation for Care toDrug Addicts (CREFAT). This was awardedto the project which aims to preventthe consumption of these substances,particularly among the young and publicin general. This project has several lines: atravelling interactive exhibition that offersinnovative resources and informationfor understanding the effects of drugconsumption on the brain, behaviour andhealth in general; an awareness-raisingcampaign aimed at families, includinga prevention guide, a free telephone

hotline, educational material for workingon prevention at school from a scientificperspective; and a campaign of trainingand updating professionals working inHealth Centres. Since this project was setup, it has provided assistance to 4,240families.

Violence: zero tolerance, set up in2005, supports psycho-social care andthe reintegration into society of victimsof gender violence, as well as promotingthe prevention of violent behaviourand generally raising awareness of thisproblem. This initiative consists of anawareness-raising campaign aimed atboth secondary school students andteachers and undergraduates and a lineof training future specialists. In addition,it is aimed at women who are victimsof gender violence through lines suchas projects jointly promoted by the RedCross and COCEMFE.

Welfare Projects is also present inhospitals. To minimise the impactof a hospital stay for both children inhospital and their family members,”la Caixa” Welfare Projects has created66 educational-play spaces in children’shospitals. These are part of the

Hospital CiberCaixa, which reinforcesthe humanisation of the health systemby creating a happy environment fullof friendly interchanges in hospitals,which has positive repercussions onchildren’s welfare. In promoting activitiesorganised in these CiberCaixa, ”la Caixa”volunteers and as well as older peoplefrom the healthy and active programmeand members of other hospital volunteerassociations work together. CiberCaixahas material such as Hospital KitCaixathat makes children more aware of theirnew situation and softens the impact oftheir illness.

With this same idea, but located in civiccentres or schools, the Welfare Projectshas a network of CiberCaixa Let’s meetafter class, These are educational areaswhere pedagogic activities are conductedboth out of school hours and in holidayperiods, so as to provide a work-lifebalance for families in which both parentswork. The CiberCaixa network of facilitiesare complemented by those set up by theWelfare Projects in six prisons designedto provide prisoners with access to newtechnologies and are helped by elderlyvolunteers who, besides their knowledge,also convey to participants their lifeexperience and values.

As regards thought, Welfare Projectspromotes the Collection of SocialStudies, designed as a platform ofanalysis and debate on social changes,the environment, technology and publichealth in modern society. In 2010, threenew studies were published: Caring forothers. A challenge for the 21st century,School Failure and Dropouts in Spain andChildhood and the Future. New realities,new challenges.

Volunteer with patients at one of the CiberCaixa Hospitals

Social Programmes



In 2010, ”la Caixa” Welfare Projectsimplemented a new programme ofIntercultural Community Relations.

This is a pioneering initiative whosepurpose is to generate a leadingmodel of community relations incultural diversity managementwhich promotes harmony and socialcohesion.

This programme was implementedin 17 neighbourhoods and towns inSpain which are characterised forhaving high cultural diversity.


DefinitionThe Intercultural Community Relationsprogramme is a pioneering initiativewhose purpose is to generate a leadingmodel of community relations in culturaldiversity management. Cooperation isprovided for community representativesin each area to promote the possibilitieseach has to offer as regards interculturalharmony.ActionTo promote processes to favour localdevelopment and improve livingconditions for all who live there; toprepare citizens in general to face theopportunities, challenges and problemsof this new situation; to prevent andredirect situations of social conflicttowards intercultural harmony.Ambit17 neighbourhoods and townsthroughout Spain.Groups prioritisedInfants, the young and families.

• The ”la Caixa” Welfare ProjectsIntercultural Community Relationsprogramme was set up to foment socialcohesion in areas with high culturaldiversity. The programme, both ona national, regional and local scaleconstitutes the main core of social actionin a new intercultural context, since itarticulates exercising shared responsibilityand highlights the value of the hugebackground of experiences carried outby community representatives in ourcountry and constitutes a guarantee ofsustainability.

• This programme has been implementedin 17 neighbourhoods and towns inSpain, which are characterised for havinghigh cultural diversity, through socialentities and with the cooperation ofthe public administration and existingresources in each area, under expertmanagement. The aim is to cooperate

with local agents to promote thepossibilities each area has to offer aregards intercultural harmony. Thisprogramme is aimed at infants, theyoung and families.

• Through competitions open to not forprofit organisations (the charities sector),seventeen areas were chosen to roll outthe programme in collaboration withlocal entities in each area. To make thisselection, the area where the action wascarried out, the previous experience ofthe social entity, its relationship with thearea represented and the proposal madeby the team and intercultural communityrelations were taken into account.

• This initiative is currently beingcarried out in the following areas:the neighbourhoods of el Clot, thenorthern area of Nou Barris and el Ravalin Barcelona, Daimiel, Elche, El Ejido,Getafe, Granada, Jerez de la Frontera,Leganés, Logroño, Pueblo Nuevo inMadrid, Paterna, Salt, San Bartolomé,Tortosa and Saragossa.

• In each of these seventeen areas,comprehensive action is being conductedthrough multidisciplinary teams whichact as reference points and the drivingforce of harmony in three priority ambits:social and educational, community healthand social relations. Work is done inthese ambits of action because of theirconsiderable importance in local everydaylife and the substantial impact these threeambits have on the community.

• The seventeen teams are formed bypeople with experience in interculturalcommunity relations, many of whomhave qualifications in social sciences.Teamwork, coordinating with otherresources and the capacity to make thecommunity respond are essential to thisprogramme, which does not aim to bejust another resource but to reinforce theexisting ones. This means providing thesocial agents working in the area withthe possibility to provide answers to the

Social Programmes


Wei Lin participates in activities to getyoung people together in Tortosa andattends language classes. Her teacher,Irene, is quite pleased to have helpedher, and also happy to participate, alongwith other professionals and neighbours,in a project to improve harmony in theneighbourhood...

challenges and problems of this newsocial situation.

• The seventeen entities are coordinatedby the ”la Caixa” Foundation, whichin turn receives cooperation from theAutonomous University of Madrid’sInstitute of Migration, Ethnicity and SocialDevelopment.

• This initiative aims to become a leadingreference as regards a model andmethodology of action, by providingideas and analysis that can contributeto the debate in the field of interculturalaspects and social cohesion. It is apreventive model which fosters theintegration of all citizens, contributesto social cohesion and, in short,prepares citizens in general to face thechallenges and overcome the processesand situations of social marginalisationin communities with a high degree ofdiversity.

• As the main part of its developmentand organisation, the InterculturalCommunity Relations programmeincludes the ongoing interpretation ofthe results obtained, particularly on aqualitative and quantitative level, andtheir assessment. In this regard, aninitial study is carried out on the level ofharmony and a survey and representativesample of the population in each ofthe seventeen areas and in six controlareas which will be repeated each year.These are qualitative and quantitativestrategies which complement each otherto strengthen reflection, the programme’sthoroughness and, in short, the scientificbasis of intercultural community relations.

• These programme last approximatelythree years in each area, after whichcontribution will have been made totransform the existing dynamics in theseareas, after establishing mechanismsof coordination and participation to

enable the community representativesin the area to be able to respond to theopportunities and challenges arising fromcultural diversity.

• To aid the development of theprogramme in the chosen towns, the”la Caixa” Foundation and the SpanishFederation of Towns and Provinces (FEMP)signed a cooperation agreement thatwill enable joint actions to be carried outto promote, spread and implement thisinitiative. As regards this, the ”la Caixa”Foundation also cooperates with theMinistry of Employment and Immigrationto roll out this programme. Thus, theallocation provided by the Ministry ofEmployment and Immigration for theprogramme, through the Secretary ofState for Immigration and Emigration, isfocused on technical guidance based onthe Strategic Social and Integration Planpassed by the Council of Ministers inFebruary 2007.

Social Programmes


According to several internationalbodies, Spain is one of the developedcountries with the highest rateof child poverty. In response tothis problem, ”la Caixa” WelfareProjects set up CaixaProinfancia, aprogramme designed to promotesocial and educational developmentfor children in situations of povertyproviding comprehensive attentionfor all the family. For the last threeyears CaixaProinfancia has workedto open the door to a better futureand provide equal opportunities forminors at risk of or in a situation ofsocial marginalisation in Spain.

As part of this initiative, highlightingthe educational aspect, theprogramme CiberCaixa Let’s meetafter class! provides these minorswith a non-formal pedagogicenvironment outside school hoursand during holiday periods.

CaixaProinfancia

DefinitionSocial, educational and economicresources aimed at families with childrenat risk of social marginalisation, withthe aim of improving their welfare andbreaking the circle of hereditary poverty.ActionThe financial institution providesassistance aimed at educational andpsychological support, and periods spentat open centres and summer schools andcamps; also included in this assistanceis the provision of basic goods (food,hygiene products, school equipment,glasses and hearing aids).AmbitMadrid, Barcelona, Valencia, Seville,Malaga, Saragossa, Murcia, Bilbao andtheir metropolitan areas, and also theCanary Islands and Balearic Islands.BeneficiariesFamilies with minors aged 0 to 16 ina situation of or at risk from socialmarginalisation.Collaborating358 social entities.Figures. 2007-2010165,328 children assisted.520,279 assistances given.

• In 2010, ”la Caixa” Welfare Projectsspent over 45 million euros on theCaixaProinfancia programme, which isdesigned to promote the developmentof the children and families in ourcountry that have the fewest resources.The project has functioned since 2007with the aim of strengthening thewelfare and development of vulnerablechildren by providing services andeconomic assistance that favour thesocial integration of children and providethem with opportunities to build a betterfuture.

• Beneficiaries are families with aminimum established income and withchildren aged 0 to 16, who are in processof social integration or could enter sucha process.

• Around half the families receivingbenefits from this project (45%) weresingle parent families. This means thatchildren are looked after by only oneparent (usually the mother). Largefamilies, those with three or morechildren, are another of the main groupsassisted by CaixaProinfancia. Most ofthese minors were born in Spain (80%),followed by those from countries such asMorocco, Ecuador or Bolivia.

• ”la Caixa” Welfare Projects is thepromoter of this programme while358 social entities are in chargeof implementing CaixaProinfanciathroughout Spain. These organisationswork under the premise that today’schildren are the adults that will shapetomorrow’s society, thus caring for

Fighting Child Poverty

Since Esther has been helped byCaixaProinfancia she feels she has moresupport and is calmer at a difficult time inher life. Her son has everything he needsto grow and her daughter attends extraclasses after school. In addition, sinceOfelia, a social worker, has participated inthis programme she has more resources tohelp other families in the same situation...

Social Programmes


their childhood is not only important toachieve their welfare, but also to build abetter future society.

• These organisations and the PublicAdministration identify those children andfamilies who are most likely to benefitfrom this programme, and then conductan overall assessment of the minor’sneeds and monitor him/her through afamily work-plan.

• CaixaProinfancia tackles child poverty inan integrated way, promoting children’ssocial and educational development andproviding them, when it is necessary, withmaterial assistance. The activities of theprogramme include:

• Psycho-social care: psychologicalhelp and family therapy, educationalback-up, activities at open centresand summer camps and schools.

• Help for babies: food and childhygiene products, school equipment,glasses and hearing aids.

• This assistance is made availablethrough the CaixaProinfancia cheques,which can be exchanged for the differentservices and basic goods offered by theprogramme in the establishments andentities belonging to it.

• The programme CiberCaixa Let’s meetafter class! is designed for childrenbetween 3 and 12 years old and takesplace in several public buildings (schools,civic or social centres, etc.) which remainopen after school hours or during holidayperiods with the aim of accompanyingminors while they grow up and becomesocialised, acting as a support for thework of the family and school.

• The children receive informal trainingand do educational activities in aninformal context. Trained staff workon the children’s social, emotional andcognitive development.

• In line with the overall strategy ofovercoming child poverty promotedby ”la Caixa” Welfare Projects, theCiberCaixa programme Let’s meet afterclass! fosters the social and educationaladvance of children with very fewopportunities. The initiative is designedfor those children who are particularlyvulnerable and those who live in homeswhere the parents find it hard toreconcile their work and family life.

• The activities focus on three areas:• Computer space, in which childrencan relate to each other through newtechnology.

• Reading and audiovisual space, withvarious learning materials.

• Infants’ space, equipped withthe furniture, games and specificresources for the very young.

• In 2010, 3,481 children benefited fromthis programme in the 51 CiberCaixaprogrammes Let’s meet after class! whichare already in operation.

Students in the programme CiberCaixa Let’s meet after class!

CiberCaixaLet’s meet after class!

DefinitionSocial and educational spaces forreception out of school hours and inschool holidays of children aged between3 and 12, whose families find it difficultto look after them.ActionResources and activities that strengthenthe children’s cognitive, emotionaland social development. The activitiespromoted at these facilities are aimed atencouraging positive attitudes and valuesfor their future such as those related tofamily relationships, the habit of study,cooperation playing together, free timeand environmental education.AmbitMadrid, Barcelona, Badalona, Valencia,Malaga, Palma de Majorca, Las Palmas deGran Canaria, Valladolid and La Laguna.BeneficiariesChildren aged between 3 and 12 fromfamilies that find it hard to reconciletheir job and child care and/or are in anespecially vulnerable situation.Figures. 2007-201051 CiberCaixa in operation.9,264 beneficiaries.

Social Programmes


Having a proper job is basic for aperson to be able to look at theirfuture with hope. Based on thisprinciple, the ”la Caixa” WelfareProjects Incorpora programme helpspromote the hiring of those peopleat risk of marginalisation or alreadysuffering it with the aim of helpingthem to join society.

In parallel, the scholarships for prisoninmates awarded by Welfare Projectsprovide training for prisoners, with aview to facilitating their reintegrationinto work and society when theycomplete their sentences and arereleased from prison.

”la Caixa” Welfare Projects Incorporawith integration into work

DefinitionProgramme of intervention for jobs thatencourages the integration into normalcompanies of people who have difficultiesin entering the world of work, as amechanism to include them in the jobmarket.ActionJoint work of companies, socialorganisations and job developersto assist the hiring of people fromdisadvantaged groups.AmbitAll of Spain and Morocco.BeneficiariesPeople with special difficulties to enterthe world of work: disabled people,people with mental disorders or peoplein a situation of social marginalisation orat risk of it (young people, the over-45s,immigrants and women affected bydomestic violence).Collaborating13,626 companies have hiredbeneficiaries.248 social entities.369 job developers.Figures. 2006-201032,740 vulnerable people hired.58 Incorpora courses for Job Developersin 26 Spanish universities in which 1,451experts from 813 social entities havetaken part.

• The Incorpora programme, set up in2006, received funding of 12.3 millioneuros for 2010. The close collaborationbetween the two main cornerstones ofthis programme is its most distinctivefeature, which allows it to providequality service to all those involved. Thefull consolidation of this model and theexperience gained over the last five yearsallowed it to confront the effects of thecrisis.

• The number of people attended bythe programme stood at 32,740, almost10,000 more than in 2009.

• Despite the economic crisis, the numberof companies collaborating with theprogramme grew considerably, risingfrom 9,542 in 2009 to 13,626 in 2010.

• The number of social entities specialisedin labour integration and linked to theprogramme grew to 248, distributedamong the Incorpora Groups set up ineach autonomous community, comparedto 236 at the end of 2009. This meansthat organisations that previously workedindependently now have a integrationnetwork to work together with the aimof rationalising resources and sharingknowledge and methods.

• The job developer is one of the keyelements in Incorpora. Through jobdevelopers, Incorpora builds a bridgebetween the social organisations thatoperate to integrate people into workand companies. The 369 job developersin the programme, who receive ongoingtraining from Welfare Projects, research thepreferences of the companiesin their area with the aim of offeringthem the profiles that best match theirrequirements. They also monitor thefuture employee’s training process,support those who have found work andmediate in any possible conflicts thatmight arise in the labour relationship.

Integration of disadvantaged groups into Society and Work

Scholarships for prisoners allow theirreintegration into society and the job market

Social Programmes


• This support at work for those in or atrisk from social exclusion is one of thefeatures best rated by companies, whichsee it as Incorpora’s main added value.Thus, the member companies participatein a programme of Corporate SocialResponsibility in Job Integration whichprovides them with the opportunity toinclude values of social and economiccommitment to their management, whilefavouring the company’s competitivenessand fostering sustainable development.

• Thanks to the mediation work carriedout by Incorpora in the last three years,we have managed to bring businessmenand the underprivileged together,favouring reciprocal benefit and leavingmutual distrust to one side.

• In November 2010, the presentationceremony of the III Incorpora Awardstook place. This Award recognises thebest actions in the field of employingpeople who are socially excluded or atrisk of social marginalisation. The prize-winning companies were: Perfumeríasy Droguerías Ana Pilar (small companycategory); Expoclean (medium-sizedcompany category); CLN ServiciosIntegrales (large company category); andCarrefour (work on the web category).

• As part of the Incorpora programme,and in collaboration with universitiesfrom all over Spain, courses are organisedfor Job Development Experts coordinatedby the Observatorio de la EconomíaSolidaria (OES). Since the start of theprogramme, over 1,000 job developershave been trained.

Scholarships for prisoners

DefinitionTraining scholarships for prisoners inorder to give them access to knowledgeand professional skills that permit theirreintegration into society on completingtheir sentences.ActionProfessional training courses in trades inhigh demand on the job market outsideprison, taught in collaboration with theCatalan government’s Department ofJustice in Catalonia and with the Ministryof the Interior in the rest of Spain.AmbitThroughout Spain.BeneficiariesPrisoners in the second and third levels oftheir sentences.Collaborating78 educational centres.Figures. 2009-20101,432 scholarships awarded.4,700 euros on average for eachscholarship.Beneficiaries taking part: 1,432.Beneficiaries gaining diplomas: 1,365.

• The Scholarships for prisonersprogramme of ”la Caixa” WelfareProjects offers an opportunity to improvethe future of the prison population.Through these scholarships, prisonersserving the second and third levelsattend professional training courses atcentres outside the prison, in order toacquire knowledge that will enable themto tackle their future reintegration intosociety with a guarantee of job stability.

• This programme highlights the couplingof prisoners’ social and labour skillsboth during the final stages of theirsentence and after their release. The aimis to foster their continued training andprovide them with necessary, useful skillsfor their reintegration into society andthe labour market.

• This pioneering scholarship programmein Spain was set up in Catalonia in 2005and has now been extended to all theautonomous communities throughoutSpain. This initiative is the result of anagreement signed in 2006 with theMinistry of the Interior, and has beenrenewed annually. Between 2005 and2010, ”la Caixa” Welfare Projectsfinanced a total of 4,292 scholarships inSpain, with a total investment of 27.2million euros.

Carmen suffers from osteosclerosis butthis does not prevent her from workingat the Special Employment Centre inCaspe, where she attends the public andalso passes on her good humour to hercolleagues. Her father is happy to see herwork...

Social Programmes



The aim of this programme is toimprove the quality of life forthose who are suffering fromserious illnesses by providing bothpatients and relatives with suitableemotional, spiritual and social care,and accompanying them in the finalstages of life.

To achieve this objective theprogramme also uses professionalhealthcare and social workers whocare for the serious ill to aid them intheir endeavour.


DefinitionProgramme of Integrated Care for theVery Ill People, aimed at improving theirquality of life and complementing thecurrent model of care with psychologicaland social care.ActionIntegrated care focusing on: providingemotional, social and spiritual supportfor patients, handling of grief, supportfor families and for palliative careprofessionals; raising awareness in societyabout the end of life; promotion ofvolunteer work.AmbitAll autonomous communities.BeneficiariesPersons who are very ill and their families.Professionals and volunteers in the areaof palliative care.Figures. 2010Over 6 million euros allocated to theprogramme.8,398 patients and 13,933 relativesattended.29 multidisciplinary teams offeringpsychological and social support.

• The programme of ”la Caixa” WelfareProjects to care for the very ill wasproposed in 2008 as a complement tothe current model of healthcare for thesepatients, with an intervention that alsotook into consideration the spiritual andpsychological well-being of the patientand his/her carers.

• In 2010 ”la Caixa” attended 22,331people, both patients and relatives.Since the programme was set up, in2009, a total of 15,342 patients and24,896 relatives have been provided withsupport.

• The programme, backed by theMinistry of Health and the World HealthOrganisation, has 29 multi-disciplinaryteams from non-profit organisationsthroughout Spain, selected and trainedby Welfare Projects in a 250-hourpostgraduate course, and consist of120 professionals – psychologists, socialworkers, nurses and volunteers – workingthroughout Spain in 61 hospitals andsocial-health centres and at patients’homes. This new model of support forthe very ill includes the following facets:

• Spiritual, emotional and socialhelp for patients and their families:facilitating the expression of emotionsand feelings, reinforcing the value ofpositive experiences in this adversesituation, helping to adapt steadily tothe illness, supporting carers in givingcare to the patient.

Inmaculada is in charge of the Unit ofPalliative Care at the Virgen de la SaludHospital in Toledo. Patients receive hercare every day; relatives, her support, andthe members of her team and hospitalvolunteers share their experiences withher...

Social Programmes


• Treating families’ grief: diagnosing aperson’s stage in the grieving process,assisting them to become aware ofthe situation, helping them to searchfor meaning in the experience of loss.

• Support for the healthcare andsocial teams that look after the veryill, helping them in their work andreducing the risk of burn-out.

• In addition, the programme for theIntegrated Care for Very Ill Peopleincludes ongoing assessment andinterpretation of the results obtainedboth quantitatively and qualitatively.In 2011, it is planned to present theresults of this scientific assessment so asto appraise the importance of psycho-social factors and the need to includeand develop them within a new social-healthcare model of integrated carefor the very ill. The aim is to go beyondthe limits of the programme and set ascientific precedent, exporting this modelof integrated care and opening up newresearch pathways.

• An assessment of results from 2010indicates that all patients improve inthe following areas: mood, anxiety,discomfort, adaptation to emotions andsuffering. Patients also make headwayin their ability to relate to others andthe degree of accepting their illnessin a context in which, due to thecircumstances, it would be normal towitness a worsening of these attitudes.

• The programme also collaborates,through publicity activities, in makingsociety as a whole more aware of the endof life and palliative care.

• During 2010, the programme took partin the following conferences:

• Seminar on Brain Damage andPalliative Care, organised by theInstituto San José in Madrid (Order ofSaint John’s Hospital).

• III seminar on End of Life, organisedby the University of Vic.

• Summer course “Psycho-oncology:psychological and social aspects incancer”, organised by the GeneralFoundation of the ComplutenseUniversity in Madrid.

• II seminar in Castile-La Mancha onPalliative care, organised by theCastile-La Mancha Association ofPalliative Care.

• VII Ethical and Ageing Forum,organise by the Geriatric andGerontology Society of the Principalityof Asturias.

• Seminar on Grief and Death,organised by the Castile & LeonSociety of Palliative Care.

• Seminar “Caring for andaccompanying the end of life by thecommunity” organised by the RedCross in Granollers.

• 15th National seminar on HumanisingHealth, organised by Los Camilos.

• Seminar on Integrated Care forPalliative Patients, organised by AECCGalicia.

• 10th seminar on “Living or Dyingwith Dignity” organised by SARAndalusia.

• Seminar on Innovation in PalliativeCare: psychological care, results andassessment, organised by the MatiaFoundation (Donostia).

In 2010 ”la Caixa” attended 22,331 people, both patients and relatives

Social Programmes


Active and Socially Integrated Elderly People

”la Caixa” Welfare Projects developscare programmes for the elderly, aimedat improving their quality of life andencouraging personal autonomy.The Elderly People programmepromotes active and healthy ageing,with activities encouraging ongoingtraining, personal development,healthy lifestyle, stimulation of skillsand abilities and the social integrationof the elderly. It is complementedby the Prevention of Dependencyprogramme, which assists oldpeople starting to find difficultiesin conducting their day-to-day life.The participation of elderly people involunteer tasks that reinforce theircontribution to society is another ofthe programme’s main features. Assuch, the Solidarity CiberCaixa standout as spaces where elderly people andvulnerable groups interrelate.

Through these programmes, elderlypeople not only add years to theirlives but, above all, life to their years.

Elderly people

DefinitionComplete programme based on volunteerwork, work within associations, gettingto know the new information andcommunication technologies and ongoingeducation, in order to develop elderlypeople as active and fully integratedmembers of society.ActionComputers and Communicationprogramme; courses and workshopsin new technology; talks and debateson questions of interest to the elderly;reading workshops; inter-generationalworkshops; volunteer activity.AmbitThroughout Spain.Figures. 2010607 own centres and centres underagreement with government bodies.529 CiberCaixa in centres for the elderly.6 CiberCaixa in prisons.724,281 beneficiaries.

• The Elderly People programme of”la Caixa” Welfare Projects is held in 607centres, 68 of its own centres and 539centres in agreements with governmentbodies and associations for the elderly. A

wide range of courses and workshops ofdifferent programmes take place in them:

• The Computers and Communicationprogramme helps elderly peopleto find out about Information andCommunication Technology (ICT),avoiding their isolation from theworld of new technology and givingthem the chance to use this newknowledge in their daily lives. Inaddition, it fosters volunteer workby the elderly people who are mostexperienced in the subject as teachersof new students of ICT. It alsopromotes the CiberCaixa – rooms inelderly persons’ centres where theclasses are given – as platforms forsocial participation.

• A wide range of activities are includedwithin the framework of the Healthand Welfare programme, from talkson contemporary issues to workshopsfavouring personal development, thedesire to learn and keeping up-to-date by introducing healthy habits toimprove the quality of life.

• Another of the programmes, OlderReaders, organises workshops topromote reading that encouragepersonal autonomy.

• Encouragement of volunteer workis another of the main features ofthis programme. For this reason,Welfare Projects supports associationsof volunteers consisting of elderlypeople (66 Elderly People Associationsthat manage their own centres, 16Associations of computer volunteers and1 Association of Volunteers that conductssolidarity actions on social issues, science,culture and computers).

• Another relevant part of thisprogramme are the intergenerationalactivities designed to encourage linksand exchanges of experience betweenchildren and the elderly.

Palmira is a volunteer in the CiberCaixa atthe prison in Picassent, where she teachesthe prisoners computer technology, suchas Maite and Cristina, who have extendedtheir knowledge. Her encouragement andenthusiasm are contagious even outsideher classes...

Social Programmes


Solidarity CiberCaixa

DefinitionVolunteer programme for elderlypeople who bring new technology todisadvantaged groups.ActionWorkshops to bring new technology tonew residents, prison inmates and peoplemarginalised in society, which are held inthe CiberCaixa of centres for the elderlyor in prisons.AmbitThroughout Spain.BeneficiariesPrisoners, immigrants, people suffering amental or physical handicap, etc.Figures. 201056,656 beneficiaries of CiberCaixacentres for the elderly.346 beneficiaries of CiberCaixa inprisons.

• In the Solidarity CiberCaixa, elderlypeople who have started to understandnew technology become the supportgroup for other vulnerable social groups.

Prevention of dependency andsupport for the family carer of

dependent persons

Definition“The Challenge of Autonomy”Programme to encourage the autonomyof elderly people.“One Carer. Two Lives”Programme aimed at non-professionalfamily carers for dependent persons.Action“The Challenge of Autonomy”: psycho-social care workshops; service of freeadapted transport to facilitate attendanceat the workshops; KitCaixa; exerciseguide and a DVD.“One Carer. Two Lives”: KitCaixa withtwo consultation guides; classroomworkshops for family carers; permanentphone line service.AmbitThroughout Spain.BeneficiariesElderly people starting to find theirday-to-day activities difficult and non-professional carers of dependent persons.Figures. 2010The challenge of autonomy1,922 workshops organised in 343centres for the elderly.28,854 beneficiaries.82 minibuses for adapted transport.One carer. Two lives284 workshops.5,307 beneficiaries.7,032 telephone calls.197,666 guides distributed.

Dependency Prevention programme.“The Challenge of Autonomy”

• The programme encourages fragileelderly people to include healthy habits intheir lifestyles, with the dual objectives ofincreasing their autonomy and delayingthe loss of capacity caused by ageing.

• The workshops are held for free inthe ”la Caixa” Welfare Projects centresfor the elderly, jointly with various localGovernment Bodies throughout Spain.

• The workshops last for three months.They are given by professional courseleaders in small groups in two weeklysessions lasting 90 minutes each.

• ”la Caixa” Welfare Projects organisesan adapted transport service that bringsthe elderly with mobility problems orreduced mobility to the centres for theworkshops.

Programme of Support for FamilyCarers. “One Carer. Two Lives”

• ”la Caixa” Welfare Projects promotesthe workshops “One Carer. Two Lives”for non-professional family carers ofdependent persons, which are heldin conjunction with local governmentbodies and various federations andconfederations with the aim ofrecognising and providing support forthe great work they do and to provideresources and practical knowledge whichhelp to improve the quality of life.

• Family carers take part in workshopsthat offer techniques and advice toenable them to look after themselvesbetter and improve both their ownquality of life and that of the dependentperson they are responsible for. Carersalso have a kit that provides informationon all the resources and services withintheir reach. There is also a free 24-hourcare line.

• The workshops are directed by aprofessional and are organised in smallgroups during four sessions of two and ahalf hours each.

Dependency prevention workshop

Social Programmes


International Division: commitment beyond our borders

Since 1997 ”la Caixa” Welfare Projectshas conducted its InternationalCooperation Programme aimed atcontributing to wipe out extremepoverty in developing countriesof Africa, Latin America and Asiathrough social and economic projects,emergency and humanitarian aid andby training social leaders and localNGOs.

Through its Child Vaccinationprogramme, Welfare Projectscontributes to improving the healthof the population most in need in themost vulnerable areas of the planet.In these countries both the lack ofresources and disease are closely linkedand health thus becomes an importantfeature in the fight against poverty.

Additionally, the programme isalso conducted in Spain, fosteringthe culture of cooperation withawareness-raising and trainingactivities.

International Cooperation

DefinitionProgramme of support for initiativesto help improve living conditions andpromote sustainable development for thepopulation most in need in developingcountries.ActionBasic lines: social and economicdevelopment; creating social capital inAfrica; Crisis and humanitarian action;CooperantesCaixa Programme; trainingfor international cooperation workers andmanagers; awareness activities.AmbitDeveloping countries of Africa, Asia andLatin America and throughout Spain.Figures. 2010671,718 beneficiaries of awareness-raising and training activities in Spain.629,058 beneficiaries of internationalprojects.39 international development andhumanitarian action projects in 2010:Guinea Conakry, Peru, Uganda, Niger,Chad, India, Ethiopia, El Salvador, Bolivia,Nicaragua, Mali, Democratic Republic ofCongo, Ecuador, Dominican Republic,Burkina Faso, Guatemala, Morocco,Haiti, Cameroon, Equatorial Guinea,Madagascar, Mozambique, Senegal,Ghana, Kenya, Nigeria, Tanzania andGambia.

• The main lines of actions are:• Training social capital in Africa:this prepares professionals (medicaland teaching staff, scholarships forwomen entrepreneurs, among otherthings...) to improve the basic socialservices in Africa.

• Emergencies and humanitarianaction: promoting protection andaid to victims of natural disasters andarmed conflicts. Donations from thegeneral public, the “Estrella Solidario”Deposit Account and resources fromthe ethical and solidarity investmentfund of ”la Caixa”, FonCaixa

Cooperation, are also allocated tothis initiative. All of these financialproducts are from ”la Caixa”.

• In this respect, of note are theemergency actions set up followingthe earthquake that affected Haiti inJanuary 2010. The ”la Caixa” Foundationcollected 3 million euros, in addition tothe 800,000 donated by the Institution.Part of the cooperation donations wereallocated to projects directed by DoctorsWithout Borders and Intermón Oxfam.The programme is preparing an exhibitionon the disaster for 2011.

• In the field of training, we promoteprofessionalising aid workers by trainingNGO volunteers, technicians andmanagers.

• The work of raising society’s awareness,dialogue, social debate and promotionof solidarity is carried out throughthe lectures, seminars, exhibitions,publications and school and familyworkshops promoted by the programme.

• In 2010 the following exhibitions wereheld: Infancy. Photographs by IsabelMuñoz; Cambodia, Land of Hope;Fair Trade, one product, one story;Maternities; Chasing the Dream, and,lastly, Refugees. Lives in Transit.

• Since this programme was set uptwelve years ago, Welfare Projectshas devoted over 56 million euros topromoting 437 projects in 62 countriesaround the world.

• As regards international alliances,the ”la Caixa” Foundation signedan agreement with the InbursaFoundation, through which it aims toratify its commitment to the citizensof Mexico and the rest of Central andSouth America. To date, two lines ofcooperation have been establishedbetween both institutions regardingcaring for people with serious illnessesand drug consumption prevention.

”la Caixa” leads Spain’s first BusinessAlliance for Child Vaccination

Social Programmes


Child Vaccination

DefinitionAgreement with the GAVI Alliance toencourage the vaccination of children inlow-income countries.ActionCollaboration with the GAVI Alliance, asthe main private partner of ”la Caixa” inEurope, in the distribution of vaccines.Promotion and channelling of Spanishcompanies’ contributions through theBusiness Alliance for Child Vaccination, aCorporate Social Responsibility initiativepromoted and led by ”la Caixa”.AmbitThe GAVI Alliance operates in countrieswith an average annual income per headof under 1,000 dollars (72 countries atpresent).BeneficiariesChildren under five.Figures. 20103 million euros in funding from”la Caixa” Welfare Projects.166,200 euros donated by 26 companiesforming the Business Alliance for ChildVaccination.

• In 2010,”la Caixa” Welfare Projectsrenewed its contribution to the GAVIAlliance to encourage child vaccination inlow-income countries, strengthening itsposition as GAVI’s leading private partnerin Europe.

• ”la Caixa” also leads Spain’s firstBusiness Alliance for Child Vaccination,set up in 2008 to encourage Spanishcompanies to join and collaborate in thesocial task of collecting funds for childvaccination. 141 companies have joinedthis project.

ISGlobal Barcelona

DefinitionThe Institute of Global Health inBarcelona (ISGlobal) is a new initiativethat links the public and private sectors,in addition to academic context.ActionThe main goal of ISGlobal is to improvethe health of the most vulnerable andto break the vicious circle of diseaseand poverty in which they are trapped.The goals coincide with the MillenniumDevelopment Goals, specifically thoserelated to health: reducing child mortality,reducing maternal mortality at childbirth,improving health and the fight againstHIV, malaria, tuberculosis and otherdiseases which affect the developmentof the poorest countries.AmbitThe ambit of work is global, seeking newsolutions for the main health challengesin the poorest countries and with themost vulnerable people through researchand development, technical assistance,training experts and having an impacton policies and the main internationalrepresentatives in Global Health.

• Created in June 2010, ISGlobal is aninitiative promoted by the governmentof Spain (through the Ministry of ForeignAffairs and Cooperation and the Ministryof Health and Social Policy), the regionalgovernment in Catalonia, the ”la Caixa”Foundation, the University of Barcelonaand the Hospital Clinic in Barcelona, andis also aided by the Carlos Slim HealthInstitute (Mexico), the Bill & MelindaGates Foundation and the NelsonMandela Children’s Fund.

• The Global Health Institute of Barcelonapromoted a new debate and thoughtforum on global health titled TribunaISGlobal, inaugurated with a talk by thepresident of Mozambique, ArmandoEmilio Guebuza.

Mariana lives in the district of Manhiça, inMozambique. She has worked the land allher life and is a member of an associationof peasant women who grow food tofeed their families. All the members of theassociation share a strong feeling of beingunited and a great capacity for hard work.Mariana’s grandchildren, who live withher, can go to school every day…

Social Programmes


Affordable Housing

For the last six years, the AffordableHousing programme belonging to”la Caixa” Welfare Projects has providedemancipation for young people, decenthousing for elderly people and makesaffordable housing available for familiesin response to the current economicclimate. This initiative, in which theInstitution has invested 720 millioneuros, received over 93,000 applicationsfrom all over Spain.

Affordable Housing

DefinitionTo develop housing with rents belowthose established by the officialsubsidised housing regime and aimedmainly at three of the groups with mostdifficulty to find housing: the young, theelderly and families.ActionConstructing housing in provincialcapitals and metropolitan areas with adeficit of rented flats and thus offeringhousing at prices below those of theofficial subsidised housing market.AmbitProvincial capitals of Catalonia, Madrid,Andalusia, Valencia and the Basque Regionand their respective metropolitan areas.BeneficiariesYoung people between 18 and 35,people over 65 and families.Figures. 2004-20101,846 houses and flats delivered.1,176 houses and flats underconstruction.

Flats for the young and elderly

• In 2004, ”la Caixa” Welfare Projects setup the Affordable Housing programmewith a commitment to build 3,000 flatsby 2012 for the young and elderly, whoare considered the two sectors of societywith the greatest difficulties to enter thehousing market due to high purchaseand rental prices.

• The flats have one or two bedroomsand net surface areas of between 45 and55 m². The conditions and requirementsfor access to these are as follows:

• To be aged between 18 and 35 or 65and over.

• To have incomes not higher than 4.5times the weighted value of IPREM(Public Indicator of Income andMultiple Effects).

• To prove they have a minimumincome or provide a bank guarantee.

• Not own any house.• The flats will be adjudicated by adraw held before a notary for all theapplicants who fulfil the conditionsestablished by the rules for eachdevelopment.

• The period of lease is five years andcan be extended providing the tenantcontinues to fulfil the regulations forthe official protection regime.

• Once the period of official protectionexpires they will be offered thechance to purchase the flat.

Flats aimed at families

• In April 2009 and as a result of theeconomic and property crisis, ”la Caixa”increased the number of flats in theprogramme by 1,000, building a totalof 4,000 flats.

• The aim of this extension is toreactivate the building sector, resumingdevelopments which had stopped due tothe crisis and in response to the need ofhousing for families.

• The flats have two or three bedrooms withsurface areas of between 60 and 90 m².

• The housing for families, the conditionsand access requirements are as follows:

• To be of legal age.• To have incomes not higher than 4.5times the weighted value of IPREM(Public Indicator of Income andMultiple Effects).

• To prove they have a minimumincome or provide a bank guarantee.

• Not own any house.• The flats will be adjudicated by adraw held before a notary for all theapplicants who fulfil the conditionsestablished by the rules for eachdevelopment.

• The period of lease is five years andcan be extended providing the tenantcontinues to fulfil the regulations forthe official protection regime.

• In all cases, once the period of officialprotection expires the customer willbe offered the chance to purchasethe house.

Developments of homes underconstruction

• The Affordable Housing programmehas already adjudicated 2,414 flats andhouses or flats for the young and elderlyare scheduled to be handed over untilthey reach the planned figure of 3,000between 2011 and 2012.

• In 2010, the following developmentshave been arranged: Sentmenat, Vila-Seca, Terrassa, Olot, Tarragona, Bilbao,Sant Just, Barcelona, Vitoria, Santander,Pinto, Cordoba, Badalona, Banyoles andl’Hospitalet de Llobregat, all of themaimed at families. Most of these 1,100homes are expected to be deliveredbetween 2011-2012, although a few willbe delivered in 2013.

Affordable Housing development inHospitalet de Llobregat

Social Programmes


Aid for projects of social organisations to assist disadvantaged groups

”la Caixa” Welfare Projects aimsmainly to support entities thatwork in solidarity to improve thequality of life of vulnerable groups.”la Caixa” Welfare Projects calls forvarious bids from non-profit socialorganisations for help in developingprojects designed to meet the needsof the most socially disadvantaged,adapted to the specific deficits andrequirements of each area.

Social Assistance Projects

DefinitionProgramme to help social initiativesundertaken by non-profit organisationsin Spain.ActionFunding projects to integrate peoplewith a disability into society and work, tofight poverty and social marginalisation,to support temporary accommodationencouraging social integration, to fosterintercultural relations and social cohesion,and to encourage volunteer work, socialaction and cultural activities with a socialimpact.AmbitThroughout Spain.BeneficiariesNon-profit social organisations that carryout projects in benefit of the most needy.Figures. 2010Support for 1,145 projects:244 projects to integrate disabled peopleinto society and work.305 projects to fight poverty and socialmarginalisation.73 projects to support temporaryaccommodation encouraging socialintegration.63 projects to foster intercultural relationsand social cohesion.166 projects encouraging volunteer work.256 social action projects.38 projects of cultural activities with asocial impact.

• Integration of disabled peopleinto society and work: initiatives topromote personal autonomy and to givepsychological and social support to thefamilies of beneficiaries, and projects topromote routes for integration into ordinaryjobs and into the specific job market.

• Fight against poverty and socialmarginalisation: projects that offerservices that cover the basic needs ofpeople at risk of social marginalisationor who are already marginalised, thatpromote these people’s participation andintegration into society and that favourroutes of integration into work in orderto overcome marginalisation.

• Support for temporaryaccommodation encouraging socialintegration: projects that offer temporaryaccommodation to people on their ownand without social relationships, womenvictims of gender violence and peoplewith serious social or family problems. Inaddition, each case is monitored in order toassist beneficiaries to overcome difficulties.

• Intercultural relations and socialcohesion: projects favouring relationshipsbetween people from different culturesand offering intercultural mediation.

• Encouraging volunteer work:projects that welcome, train andintegrate volunteers into socialorganisations and to improve themanagement of groups of volunteers.

• Social action projects: initiatives topromote health, gender equality andeducation in values; and to improve thequality of life of people with physical ormental health problems.

• Help for cultural activities with asocial impact: initiatives to promoteactivities linked to the plastic arts,photography, music, literature and dramaas resources for personal developmentand social integration; and to foster theactive involvement in social action ofparticipant groups and of professionalsfrom the world of culture.

In 2010,”la Caixa” Welfare Projects promoted 1,145 social projects

Introduction

A wide range of scholarships which back talentto encourage social progress

Educational Programmes




The commitment of ”la Caixa”Welfare Projects to education andtraining people is evident in its fullrange of initiatives. Knowledge andvalues are two of the most importanttools for personal growth and,therefore, all the Institution’s actionsare clearly educational.

From caring for children in hospital toworkshops that bring new technologiescloser to the elderly and the drugawareness and prevention project,to mention just three examples, thepresence of an educational focus is clear.

As part of the work in this area, theWelfare Projects’ close relations withschools are especially important. Projectssuch as CaixaEscena, which fosters theuse of theatre in schools; The Art ofEducating, which conveys pedagogicthought during school visits to thePrado museum presented throughthe Welfare Projects initiatives; schoolconcerts and visits to the CosmoCaixaand CaixaForum centres highlight theinvolvement of ”la Caixa” with schools.

Projects such as Art in the Street aimto break down the barriers that existbetween contemporary art and citizensby installing sculptures such as thosecreated by Rodin in streets and squaresin the largest cities. The ”la Caixa” inFavour of the Sea initiative, related tothe environment, makes people aware ofthe importance of conserving our marinebiodiversity through workshops andvisits to the project’s science schooner.Intergenerational activities promote socialharmony among the elderly and youngestduring school holidays. In the end,education can overcome all.

In this respect, one particularly valuableexample is the KitsCaixa Values, aneducational aid for primary schoolteachers and students aged between8 and 12 which the Foundation hasdistributed throughout resource centersand which is available for use by schoolswith the aim of promoting ethical valuesand harmony. These materials seek toassimilate civic values based on threecornerstones: Identity, Social Harmonyand Responsibility. Since the projectbegan, Welfare Projects has distributed398 kits to schools, and these have beenused by 575,000 schoolchildren.

In parallel to the above, all the socialinitiatives promoted by the Foundationuse education as a reference point. Thisis the case of the CaixaProinfanciaproject which fights child poverty andregards learning support as one of mostefficient ways to combat the perpetuityof situations of marginalisation inwhich minors in low-income familiesare trapped. Also noteworthy is theproject offering vocational trainingscholarships for prisoners who are in thelast stages of their sentences. For them,acquiring skills and knowledge requiredby trades that are in high demand, suchas gardening, the hotel and cateringbusiness or geriatric assistants, constitutean opportunity for their reintegration intowork and a return to normality in theirlives once they are released from prison.

In addition to the above are theinnovative projects committed totraining professionals in pioneeringareas such as the methodology of workcarried out and implemented throughthe Foundation’s projects coupled withthe projects Integrated Care for VeryIll People or Intercultural CommunityRelations.

Finally it is worth noting one of the coreactivities carried out by the ”la Caixa”Foundation in the area of education: itsscholarship project. For over thirty yearsthousands of young Spanish studentshave been given the opportunity to studyat the best schools and universities inthe world thanks to these scholarships.Additionally, since 2008, the”la Caixa” Foundation has promotedan international scholarship for PhDsin biomedicine, thanks to which fourSpanish research centres have recruitedyoung gifted students from around theworld in their PhD projects.

Presentation of scholarships to study PhD courses abroad (2009)



A wide range of scholarships which back talent to encourage social progress

Investing in education is one of themain pillars for improving a country’slevels of progress and social welfare.This is why, since 1982, ”la Caixa”has been offering scholarships tohelp students extend their universityeducation in the best universities ofSpain and other countries.

• The objective of the ”la Caixa” WelfareProjects Scholarship programme is tocollaborate in training top scientistsand professionals, which is of benefit tosociety as a whole.

• The funding on offer, the number ofscholarships, the services provided forstudents before, during and after thescholarship and the diversity of subjectssubsidised mean that the Scholarshipprogramme of ”la Caixa” is one of thebest in the world.

• In 2010 the following were awarded:• 100 scholarships for Master’s degreesin Spain.

• 117 scholarships for postgraduatestudies in other countries.

• 15 scholarships for journalismplacements.

• 40 scholarships for PhDs inBiomedicine.

Scholarships for postgraduatestudies in other countries

DefinitionProgramme of scholarships forpostgraduate studies at any university orcentre of higher education in the UnitedStates, Europe or Canada and BusinessManagement studies in China or India.ActionTo encourage mobility and give a firstopportunity to do postgraduate work inleading foreign universities and centres.Funding givenReturn air ticket, university registrationfees, monthly income, initial funds forsettlement costs, health insurance,academic guidance course, cost ofapplications to the country’s universitiesand visa costs.Number of scholarships awardedin 2010117.CountriesUnited States: 40 scholarships.Germany: 20 scholarships.France: 20 scholarships.Great Britain: 20 scholarships.Rest of Europe: 5 scholarships.Canada: 5 scholarships.China: 5 scholarships.India: 2 scholarships.

Scholarships for Master’sdegrees in Spain

DefinitionProgramme of scholarships to take anofficial Master’s degree at any universityor centre of higher education in Spain.ActionTo encourage mobility and give thesupport necessary for students to takethe Master’s degree that best suits theirabilities and potential and to derive themaximum benefit from it.Funding givenRegistration fees, monthly income andinitial funds for travel and settlementcosts.Number of scholarships awardedin 2010100.

Mr. Fainé presenting one of the scholarships for PhD studies abroad



Scholarships for studying a PhDin Biomedicine

DefinitionProgramme of scholarships for studentsfrom all round the world to study theirdoctorate in biomedical research at fourleading Spanish biomedical researchcentres.ActionTo favour the settlement among Spain’sscientific community of top younginternational researchers and give themthe chance to do research as scientists atfour of the leading international centresin Biomedicine.Funding givenMonthly income, annual grant equivalentto a monthly payment for travel,settlement and seminar costs.Number of scholarships 201040.

Scholarships for journalismplacements

DefinitionProgramme of scholarships for studentsin the final year of Information Sciences(Journalism branch) for two-year trainingplacements.ActionPlacement work in offices of the EfeAgency in the autonomous communitiesfor the first year and at its internationaloffices for the second.Funding givenMonthly income and travel allowance.Number of scholarships 201015.

• In 2010, and for the third year,”la Caixa” Welfare Projects awarded 40scholarships to international studentstaking part in this programme, thanks towhich four Spanish centres received tenyoung researchers: the National Centrefor Cancer Research (CNIO), the NationalBiotechnology Centre (CNB-CSIC), TheGenom Regulation Centre (CRG) andthe Institute for Biomedical Research(IRB). These scholarships, lasting fouryears, are aimed at students worldwide.In 2010 there were 120 post-doctorateresearchers in this programme.

• The amount of funding given andthe scientific excellence of the Spanishcentres where the doctorates are takenmean that this programme can competewith the world’s best in the field ofbiomedicine.

• Thanks to this programme, the fourcentres can integrate young trainedresearchers from all over the world intotheir teams. This stimulates scientificexchange, opens up new researchhorizons, favours the involvement ofSpanish scientists in international researchand reinforces the role of Spanishbiomedical science as an internationalleader in the field.

Enric received a scholarship to study amaster in Biomedical Engineering atColumbia University in New York. Thanksto his training he now works at theInternational Health Research Centre inBarcelona and the Centro de Investigaçãoem Saúde in Manhiça (Mozambique),backing the work of other researchers,such as Quique, to improve health indeveloping countries…

Introduction

Science

Research

Environment

Science, Research and EnvironmentProgrammes


Science, Research and Environment Programmes


Welfare Projects generally aspiresto improve quality of life andwelfare of citizens. Advancingscientific knowledge, spreading suchknowledge among a widest possiblepublic and conserving and improvingthe environment are therefore veryimportant areas of work.

Promoting sustainable habitsamong citizens, spreading scienceand scientific knowledge, makingbreakthroughs in biomedical researchand caring for and conservingour natural heritage are the mainfocuses of the scientific, research andenvironmental programmes.

In 2010, the Institution devoted 59million euros to these initiatives.

The research support programme wasbacked by the launching of ISGlobal,the Global Health Institute in Barcelona,the opening of the ”la Caixa” MolecularCancer Therapy Unit in the Vall d’HebronHospital and holding the first competitionof RecerCaixa, a project developed jointlywith the Catalan Association of PublicUniversities, three of its most notable events.

In 2000, the UN set as one of itsMillennium Development Goals, threechallenges directly related to globalhealth: reducing child mortality, reducingthe mortality of mothers and improvinghealth and the fight against HIV, malaria,tuberculosis and other diseases thatplague development in the poorestcountries. In line with these objectives,ISGlobal Barcelona, promoted by WelfareProjects in 2010, has as its main objectivethe health of the most vulnerablepeople and breaking the vicious circle ofdisease and poverty in which they aretrapped, thus complementing, beyondour borders, the commitment to childvaccination within the InternationalCooperation Programme.

RecerCaixa aims to take the qualityand scope of research in Catalonia one

step further, as well as economic andtechnological expertise in Catalan society.This programme is promoted jointlyby ”la Caixa” Welfare Projects and theCatalan Association of Public Universities,which chose the winning projects for its firstedition, held in 2010.

The ”la Caixa” Molecular CancerTherapy Unit directed by the prestigiousoncologist Josep Baselga and inauguratedin June, will focus its activity on designingand searching for new ways to treatcancers through clinical tests with newtherapies to fight tumours. These projectsare part of the numerous researchcentres backed by ”la Caixa” amongwhich worthy of mention are IrsiCaixa,international leader in the fight againstAIDS, the WIDER endoscope surgerycentre and the National CardiovascularResearch Centre.

The discoveries derived from thesupport provided for research offer newperspectives for science. Aware of thefact that this increasingly forms partof our lives, Welfare Projects providessupport for popularising science. TheCosmoCaixa Museums of Sciencein Madrid and Barcelona, wheremeetings, talks and shows are held thatrange from palaeontology to climatechange, are forums serving to spreadscience. The contents of these areas arecomplemented with travelling exhibitionsaround the country. Once upon a time...Speech!; Origins; Technorevolution andNeuronal landscapes are just some of thetitles.

As regards protecting the environment,the programme Conservation ofnatural spaces and reintegrationinto society contributes to preservethe most valuable ecosystems in Spainby conserving the environment which,additionally, prioritises hiring people fromdisadvantaged groups to do this work.In 2010, Welfare Projects promoted 417initiatives as part of this project. Theinnovative initiative set up jointly with

the Catalan Institute of Climate SciencesFoundation (IC3) to install a networkof stations capable of measuring andstudying the impact of climate change,adds to the environmental commitmentof ”la Caixa”.

”la Caixa” in Favour of the Sea,focuses on promoting the importance ofprotecting marine areas.

In addition, the ”la Caixa” Foundationis working on the publication of theSustainability Report. To prepare thisit uses the international standardmethodology GRI-G3 of the GlobalReporting Initiative. It aims to providean accurate, reliable, transparent andperiodical view of the Foundation’seconomic, environmental and socialdevelopment, thus improving theaccountability of the Institution’s activitiesfor the Foundations’ stakeholders.

Vell Marí. ”la Caixa” in Favour of the Sea



Science

The science programme aims topopularise scientific and environmentalknowledge and bring them closer tothe public at a time when science isincreasingly more present in our lives.This is conducted through a series ofexhibitions and activities designed forthe public in general.

CosmoCaixa Barcelona

DetailsInaugurated in 2004.30,000 m2

2,128,453 visits in 2010.721,337 visitors in 2010.LocationIsaac Newton, 26, Barcelona.Facilities4 halls for temporary exhibitions.7 multipurpose rooms and halls.Auditorium.Agora.Science Plaza.Permanent exhibitions and spacesDrowned Forest.Geological Wall.Hall of Matter.Planetarium and Meteorological Station.Click and Flash.Bubble Planetarium.Touch, touch!

• CosmoCaixa Barcelona, belongingto ”la Caixa” Welfare Projects, is aninternational benchmark. It offersan extensive scientific programme oftemporary and permanent exhibitions,workshops, lectures, courses and debateson the latest events in science, researchand the environment explained byresearchers, making it an internationalpoint of reference. Its activities changeevery four months and are organisedaround scientific events.

• Opened in 2004, this Science Museumof ”la Caixa” Welfare Projects bringsscientific knowledge closer to the publicin all its age-groups – elderly people,families, young people, children –, andat all educational levels. The facilitiesare adapted for all types of people withdifferent handicaps.

• CosmoCaixa’s educational programmeis based on constant innovation in theteaching resources and formats of itsactivities with the aim of informallycomplementing educational subjects. Aswell as guided tours, the centre puts onworkshops, itineraries, science classes,scientific theatre and talks for schoolstudents, initiatives that are highly valuedby teachers. CosmoCaixa Barcelona isa museum where visitors use all theirsenses, participate, play, learn and, aboveall, enjoy themselves.

Temporary exhibitions

• Let’s talk about drugs. From 15January 2009 to 31 January 2010.

• Darwin, the observer. From 21October 2009 to 15 November 2010.

• Abracadabra, conjuring and science.From 19 November 2009 to 9 January2011.

• Recycling. From 4 June 2010 to 7June 2011.

• Air. Breathing and children’s health.From 15 October 2010 to 16 October2011.

Cycles of Talks, Debates andCourses to Popularise Science

• Cycle of talks Talk today… Scienceand Citizens, jointly with the CatalanAssociation of Public Universities(ACUP), with the lecturers EnricCarreras and Eudald Carbonell.

• From waste to raw material. The rootsof tomorrow’s consumer products,cycle of talks in conjunction withUnescocat.

• Scientific seminar. Cancer, towardspersonalised medicine, with lecturesby J. Michael Bishop, Nobel Prize forMedicine and Laura Van’t Veer.

Josep Marlés is a teacher of biology andhas taken his students several times toCosmoCaixa. Each visit turns into anexperience for the children, which inturn makes them more interested inlearning and getting closer to the worldof science...



CosmoCaixa Madrid

DetailsOpened in 2000.11,000 m2.1,378,261 visits in 2010.348,541 visitors in 2010.LocationPintor Velázquez, s/n, Alcobendas(Madrid).Facilities3 Exhibition Halls.4 multipurpose rooms and halls.Conference room/ Auditorium.

• Popularising scientific andenvironmental knowledge and bringingthem closer to the public in a simple,entertaining way, carried out by thosewho make it possible, is one of the mainaims of the ”la Caixa” Welfare ProjectsScience Museum in Madrid. This museumis mostly interactive, based on visitorsparticipating and experimenting with thescientific concepts being passed on.

• Since it opened in Alcobendas in2000, CosmoCaixa Madrid has becomea meeting place for science and society.Its exhibitions, talks and workshops forthe general public focus on research,astronomy and the environment,highlighting current events and generalinterest.

• In 2010 CosmoCaixa Madrid receiveda total of 348,541 visitors. The mostpopular exhibitions were Dinosaurs.Treasures from the Gobi Desert, Let’stalk about drugs and Understandingto survive: the climate. Also cycles oftalks and workshops were held on therelationship between science and magic,exploring space, the world of dinosaurs

and the importance of biodiversity inwhich the best national and internationalexperts took part.

Temporary exhibitions

• Long Live difference! The mostvaluable treasure in the last onethousand million years (November2008 - January 2010).

• Understanding to survive: the Climate(June 2009 - March 2011).

• Dinosaurs. Treasures from the GobiDesert (March 2010 - January 2011).

• Let’s talk about drugs (March 2010 -May 2011).

Cycles of talks, debates and courses tospread scientific knowledge

• Seminar Webvolución 2.0: digitaltools for teachers in the 21st century.

• Cycle of talks From Earth to space.The technology of the final frontiers.

• Cycle of talks Dinosaurs! Fivewindows to the most famous (almost)extinct beings.

• Beginner’s course in astronomy.

CosmoCaixa Madrid



Research

Since 1995, ”la Caixa” WelfareProjects has promoted scientificresearch in order to find answersto developments in the field of lifesciences and health for the welfare ofpeople. In 2010 it renewed its effortsand extended its range of activities.

• For over 15 years Welfare Projects haspromoted research through alliancesformed with institutions and PublicAuthorities. In 2010 RecerCaixa, a newpioneering programme in Catalonia, wasset up, the result of cooperation between”la Caixa” and the Catalan Associationof Public Universities (ACUP), to boostand aid research. Research scholarships isan annual programme funding the bestresearch projects and research centresin Catalonia in specific fields of socialsciences and health. The investmentmade by ”la Caixa” for this project willamount to 9 million euros until 2014.

• One of the first laboratories in whichthe Institution invested 1.3 million eurosin 2010 was IrsiCaixa at the GermansTrias i Pujol Hospital in Badalona, whichhas become an international benchmarkin AIDS research.

• In line with this action, the PasqualMaragall Foundation and the ResearchProgramme of Early Diagnosis ofAlzheimer (EDOA) received funding fromboth ”la Caixa” and the Catalan regionalgovernment as part of the BarcelonaBetaProject. This new pioneering initiativefocuses on conducting a national studyaimed at diagnosing and treatingneurodegenerative diseases at an earlystage. ”la Caixa” Welfare Projects willallocate 3.4 million euros to this projectuntil 2012.

• ”la Caixa” Welfare Projects, as sponsorof the Vall d’Hebron Institute ofOncology Foundation (VHIO), createdthe first Research Unit of MolecularCancer Therapy in Europe, directed byDoctor Josep Baselga. Its aim is to speedup the transfer of scientific discoveriesto clinical practice to benefit patientssuffering from cancer. ”la Caixa” WelfareProjects will invest a total of 7 millioneuros in this new project.

• In addition, ”la Caixa” provides supportfor institutions such as the NationalCardiovascular Research Centre inMadrid (CNIC), directed by DoctorValentí Fuster, and the CardiovascularGenetics Programme, directedby Doctor Ramon Brugada, at theBiomedical Research Institute in Girona(IDIBGI).

• Also, thanks to its alliances with otherinstitutions, ”la Caixa” provided fundingfor the WIDER-Barcelona Centre(World Institute for Digestive EndoscopyResearch in Barcelona), directed byDoctor Josep Ramon Armengol-Miró,part of the University Hospital ResearchInstitute Foundation at Vall d’Hebron(FIR-HUVH), with a total investmentamounting to 9.9 million euros. Its aimis to promote advances in endoscopicsurgery by using the body’s naturalorifices to aid a faster and less painfulrecovery.

RecerCaixa, a pioneering programme in Catalonia encouraging research



Environment

The Environment programmepromotes actions to conserve andimprove natural spaces both on landand sea and encourages respect forbiodiversity.

Conservation of natural spaces andreintegration into society

DefinitionThis programme, the result of agreementswith the autonomous communities andregional councils, has a dual objective: tocontribute to improving and maintainingnatural spaces and to promote theplacement in work of disadvantagedpeople.ActionPromoting work which helps to reduce theeffects of climate change, such as plantingtrees or aimed at the use of renewableenergies and reducing CO2 emissionsare lines of action that have beenstrengthened in the latest agreement.Work also continued on restoring forestsfollowing fires, fire prevention andimproving natural habitats and landscapes;conserving biodiversity, encouraging andpublicising research into environmentalvalues; strengthening the economicfabric and the in-job training of the localpopulation in towns within natural spaces.AmbitThroughout Spain.BeneficiariesPeople at risk of social marginalisation,preferably with a physical or mentaldisability, the mentally ill, formerprisoners, former drug addicts,immigrants, the long-term unemployedand women in an extreme situation.CollaboratingAll the autonomous communities andCatalan and Basque regional councils.Number of beneficiaries in 20101,860 people at risk of marginalisationNumber of projects in 2010417.

Conservation of natural spaces andreintegration into society

The programme of Conservationof natural spaces is ”la Caixa”Welfare Projects’ commitment toimproving nature faced with theloss of biodiversity on planet Earthand people’s concern on issuessuch as managing the environment.The programme also offers peoplebelonging to disadvantaged groupsthe chance to integrate in societyand to work by carrying out actionsto protect and conserve the mostvaluable natural spaces in ourcountry. This year efforts werereinforced to minimise the effects ofclimate change and install renewableenergy as a source of clean,sustainable energy.

• This initiative was set up in 2005 withthe signing of a first agreement with theBarcelona Regional Council. The goodresults led to this being implementedthroughout Spain. Currently WelfareProjects has signed agreements with allthe autonomous communities in Spain.It should be emphasised that these yearshave seen action in most of Spain’snational and natural parks.

• Lines of action focus on promotinginitiatives to reduce the effect of climatechange, the conservation of our naturalsurroundings (forest habitats, use ofrenewable energies, restoring degradedareas, eliminating foreign plants, etc,) butalso conserving biodiversity and makingspaces accessible to the disabled.



• To cite just some of the initiativescarried out as part of the programme toconserve natural spaces, Welfare Projectssupported last year:

• Study of the effects of climate changeon marshlands in the province ofÁlava.

• Restoration of the public woodsaffected by the fire in Sierra Nevada(Granada), in 2005.

• Adapting a stretch of the trail fordisabled people in the OrdesaNational Park (Huesca).

• Pilot scheme to plant marineeelgrass (a plant belonging to thephanerogram family), as a way toabsorb CO2, in Asturias.

• Restoration of forests in Ibiza due tothe fire there in the summer of 2010.

• Comprehensive management toimprove habitats and prevent fires inel Garraf Nature Park (Barcelona).

• Fitting a biomass boiler in theToki-Alai interpretation centre, inthe Nature Park of Urkiola (BasqueCountry).

• Restoration of forest in La Palma(Canary Islands) due to the fire in2009.

• Eliminating foreign invasive plants inthe Bay of Santander, Cantabria.

• Recovering the natural surroundingsof the Altillo Chica open lagoon(Toledo).

• Restoration of the stretch of theCamino de Santiago trail in Palencia,Castile-Leon.

• Project to protect, restore and assesspeat bogs in the eastern part ofExtremadura.

• Conserving and encouraging localvegetation in the ecosystems of dunesin the National Park of the AtlanticIslands (Pontevedra).

• Creating a forest mosaic to improvebiodiversity and fight againstforest fires in els Ports Nature Park(Tarragona).

• Adapting and improving access to LaFageda d’en Jordà Nature Park in thevolcanic area of La Garrotxa (Girona).

• Restoring and managing farmland forpastures in the Pagoeta Nature Park(Guipúzcoa).

• Planting trees to absorb CO2 inNatural Areas of the La Rioja region.

Andrés suffers from Ménière’s disease, adisorder which affects his inner ear andprevents him from following his careeras framing carpenter. Now he works torecover natural spaces in Cantabria. As ajob developer, María José feels fulfilledfor having helped Andrés to believe inhimself once more. Andrés’ family hasnoticed this change...

• Actions in forests to prevent fires inthe public estate of Bonrepòs (Lleida).

• Identification improvement studyin swamps to promote biodiversityand mitigate the negative effects ofclimate change in the Madrid region.

• Project to restore the Vía Verde forestin Caravaca de la Cruz (Murcia).

• Constructing a fire break in theCommunity Place of Interest ofArabarko (Navarre).

• Actions to improve environmentallinks in the Area of Natural Interest ofthe mountains of Tivissa (Tarragona).

• Fitting solar panels in El Hondo NaturePark Visitors’ Centre, in El Hondo(Valencia).

Introduction

CaixaForum Barcelona

CaixaForum Madrid

CaixaForum Palma, Lleida, Tarragonaand the ”la Caixa” Foundation in Girona

New CaixaForum centres in Seville and Saragossa

Exhibitions

Music

Cultural Programmes


Cultural Programmes

Cultural Programmes

Culture is the driving force of socialand personal development. Basedon this belief, Welfare Projectsdedicated 50 million euros in 2010to developing cultural initiatives.The aim of these is to foster habitsof cultural consumption which helppeople to grow.

The range of initiatives promoted bythe Institution therefore aim to bringpeople from all backgrounds, ages andeducation closer to art, music, theatreand humanities, particularly thosewho do not have the chance or habitof frequenting museums, theatres orconcert halls.

In line with this spirit, ”la Caixa”promotes the CaixaForum network ofsocial and cultural centres, free facilitiesopen to all which host activities related todifferent areas of culture.

The range of cultural projects offeredby ”la Caixa” Welfare Projects isgenerally built around four large areas:exhibitions, humanities, music andtheatre.

The exhibition programme that presentedsuch events as the retrospectiveexhibition featuring works by MiquelBarceló, the tribute to genius filmmakerFederico Fellini, the poetical photographyof Jacques Henri Lartigue or a look backat the technique of engraving throughthe From Dürer to Morandi project wereespecially noteworthy.

The humanities project also includedclassical and modern thought, literature,cinema, history, art and scenic arts withthe aim of getting to the roots of cultureand promoting debate on great socialchanges.

The Welfare Project’s music programme iscommitted to generating social cohesionand promoting intercultural activities.And theatre has come to life throughCaixaEscena, a programme of aid and

support for teachers who regard actingas a tool to motivate creativity andteamwork in their students. In 2010, theprogramme was carried out throughoutSpain with 634 school theatre groupstaking part, with a total of 11,332students, 488 performances and 83,666beneficiaries in the education community.

Recovering heritage is another of thepriorities in the area of culture and theOpen Romanesque project, developedjointly with the regional governmentof Catalonia, is its most irrefutableexpression.

Great alliances

One of the main actions promoted in2010 by ”la Caixa” Welfare Projectsas part of its Cultural programmewas its commitment to consolidate itspolicy of creating alliances with leadinginternational museums and culturalcentres.

Thus, the exhibition Roads to Arabia.Archaeological treasures from theKingdom of Saudi Arabia was shownin CaixaForum Barcelona, through thecooperation agreement signed in 2009

with the Louvre, which will enableexhibitions of works from this Frenchmuseum to be held in the coming yearsin the various CaixaForum centres.

Additionally, in 2010 the ”la Caixa”Foundation signed a cooperationagreement with the MACBAFoundation (Museum of ContemporaryArt in Barcelona) with the aim ofmanaging the modern art collectionsbelonging to both foundations. Thisagreement will create a commoncollection totalling 4,450 works ofart worth around 160 million euros,making it one of the most importantcollections in Spain and Europe fromperiods spanning the second half of thetwentieth century to the present.

This agreement will be seen in exhibitionsprepared by the joint large exhibitionprojects in each of the institutions’centres and in foreign museums from2011. In parallel to this, the projectincludes developing educational,research, social cohesion and specificart projects. In addition to these twoagreements, Welfare Projects also runsthe Art of Educating project jointly withthe Prado Museum.

Open Romanesque project. Church of Sant Joan in Boí


Cultural Programmes



DetailsOpened in 2002.12,000 m2.1,552,110 visits in 2010.733,945 visitors in 2010.LocationAvinguda de Ferrer i Guàrdia, 6-8,Barcelona.FacilitiesFive exhibition halls.Auditorium holding 341 people.Three halls for courses, talks and otheractivities.Arts Laboratory for educational activities.Media library.

• The range of activities and exhibitionsheld at the CaixaForum Barcelonareceived over one and a half millionvisits in 2010. Located in the formerCasaramona factory (designed by Puigi Cadafalch), a jewel of industrial ArtNouveau architecture, CaixaForum hasbecome one of the city’s busiest andmost dynamic cultural spaces.

• The main objective of the initiativesand activities held at CaixaForumBarcelona is to bring culture closerto society. In 2010, the centre put onan extensive programme of activitiesfor every kind of public, includingexhibitions of art from various periods andcivilizations and in different categories(painting, architecture, photography...).Around these, CaixaForum organisedcomplementary activities, debates andtalks, cycles on literature and thought,films, multimedia activities, courses,workshops, family programmes, guidedtours for the general public and toursbooked beforehand for groups andgeared towards schools, as well asprepared visits for people with hearingdifficulties and the visually impairedand coffee discussions for the elderly.The humanities, music, internationalcooperation, educational and family

activities and multimedia programmes puton a great many events in several formats:concerts, theatre shows, debates andtalks, film shows, courses and workshops.

• The CaixaForum Media Library [MediaArt space], a centre that specialises innew art forms, increased its numberof visitors together with its collectionsof books and films, documentaries,photography, music, video art, etc. in2010. It also added services and resourcesto provide support for teaching andresearch within its ambit of subjectsand for different levels of education:secondary education, undergraduatesand postgraduates.

• Of all the exhibitions held, the mostpopular in 2010 was the one dedicatedto Majorcan artist Miquel Barceló,which attracted over 228,000 visitors.Also popular were the retrospectiveexhibitions dedicated to Frenchphotographer Jacques Henri Lartigue andfilmmaker Federico Fellini, and the latestexhibition of ”la Caixa” Welfare ProjectsFotoPres’09, each of which attracted wellover 100,000 visitors. Noteworthy werethe exhibitions featuring works fromthe ”la Caixa” Foundation’s Modern ArtCollection, one of the largest in Spain,which were visited by over 340,000people. Thus, the exhibition entitledDeclassified Objects was the secondmost popular of the year in CaixaForumBarcelona with almost 136,000 visits.

Exhibitions

• The worlds of Islam in the collectionfrom the Aga Khan Museum

• Cambodia, land of hope• Federico Fellini. The circus of illusions• FotoPres ”la Caixa” 09• The style of an artist: Luis Gordillo.Dogmatic cosmetics. The ”la Caixa”Foundation’s Collection of Modern Art

• Declassified objects. The ”la Caixa”Foundation’s Collection ofModern Art

• Childhood. Photographs by IsabelMuñoz

• A floating world. Photographs byJacques Henri Lartigue (1894-1986)

• Miquel Barceló. 1983-2009. Lasolitude organisative

• Athletics. The most human sport of all• Roads to Arabia. ArchaeologicalTreasures from the Kingdom of SaudiArabia

• Human, too human. Spanish art fromthe 1950s and 1960s. Collection ofModern Art

• Windows to the world.Documentaries from anotherperspective

• The temptation of the earth (QiuAnxiong

Humanities

• Cycles of talks• German romanticism, Schumann’slieder and romantic poets



Cultural Programmes

• Catalan thinkers: Balmes, Pi i Margall,Joan Maragall, Lerroux, Vicens Vives

• Narrating in the era of pictures• From poem to poem. Poems fromSpanish literature commented bytoday’s poets

• Nino Rota. Music, feeling and image• Art and Greek-Latin antiquity• The publishing trade. From CarlesBarral to our times

• Writing from today’s world• Franco’s regime, 35 years on. A newhistorical account

• Cycles of talks and film shows• Forgotten Spanish explorers• Barceló’s sea

• Cycle of cinema• Photographer before the lens• Fellini: the infinite show

• Seminar• Athletics and its infinite subtleties

• Art mornings• New formats and channels fordocumentary photography

International cooperation

• Cycle of cinema• Childhood• Cambodia

• Cycles of talks and round tables• Meetings with commitment• The response by NGOs to theemergency in Haiti: actions, learningand challenges

• Assessing humanitarian actions. Whyis it so important?

Music

• Concerts of Antiqva

• Concerts from the CaixaForumSeason of Music: 12 concerts featuringrenowned celebrities and groups ofancient music, music from around theworld and further styles, notable among

which were Trevor Pinnock, HopkinsonSmith, Avaye Doust, A Filetta, XavierSabata and Forma Antiqva, the ChamberGroup of the Baroque Orchestra ofCatalonia, Fargana Qasimova and theDaud Khan Ensemble.

• Filmed music• Verdi• Sounds, rage, echoes. Filming musicand musicians of the 20th century

• Electronic music• Electronic music linked to the cycleElectronic cinema

• Experimental music in CaixaForum

Summer nights

• Concerts (gospel, jazz, rumba, fado,tango, congolese, celtic, brazilianmusic...)

• Performances, contemporary danceand video

• Recital of poems

Family activities

• Family concerts• Family cinema• Street arts. Even if it rains!• Scenic arts

• Art in the labo• Art in play (independent activities: theCaixaForum backpacks, mural by SolLeWitt: variations on a theme, wrackyour brains at CaixaForum)

• Workshops• Educational area• Exhibition presentations for all thefamily

• Games with clues

Educational activities

• Arts workshops• International Cooperation workshops• Music workshops• Lively guided visits in the exhibitions• Concerts• Scenic arts

Multimedia activities

• Concerts• Media Library Channel projections

Eulalia has taken part in a familyworkshop at CaixaForum and had fun, justlike her sister. Their parents are delightedtheir children can get so close to cultureand this can have a positive effect on theirdevelopment. Mónica enjoys working as ateacher…


Cultural Programmes

CaixaForum Madrid

CaixaForum Madrid

DetailsOpened in 2008.10,000 m2.1,445,045 visits in 2010.1,028,310 visitors in 2010.LocationPaseo del Prado, 36, Madrid.FacilitiesTwo exhibition halls.Auditorium holding 330 people.Five educational and/or multipurposespaces.Cafeteria-restaurant.Shop/bookshop.

• Since opening its doors in February2008, CaixaForum Madrid has become areference point in Spain’s capital whichhas extended and diversified the socialand cultural activities on offer, boththrough ”la Caixa” Welfare Projects andby holding events organised by leadinginstitutions and entities. The 1,028,310visitors have turned it into a living, activeand dynamic centre on offer to thepublic in general, a platform to spreadknowledge coherent with society’scurrent concerns and needs.

• CaixaForum Madrid is a meetingpoint in the city’s life which generatesknowledge and personal developmentthrough exhibitions featuring ancient,modern and contemporary art which ithas displayed, as well as concerts, scenicarts, cycles of cinema and literature,educational and family workshops plusscientific and environmental meetings.

• Photography as a tool of socialcommitment has been the focus of mostof the CaixaForum’s programmes thisyear with exhibitions such as FotoPres’09,Maternities and Childhood. Photographsby Isabel Muñoz. The centre also housedthe first great retrospective exhibitionorganised in Spain featuring works by artistMiquel Barceló which covers the mainlandmarks and stages of his art work fromthe early days to the present. Its halls havealso shown a previously unseen view ofthe personal, intellectual and artistic linksforged in the Residencia de Estudiantesbetween painter Salvador Dali and poetand playwright Federico García Lorca as partof the international avant-garde movement.

• As regards attendance, exhibitionsare the core of the activities organisedat CaixaForum Madrid, followed byeducational and family activities, concertsand cycles of humanities and socialprojects.

Exhibitions

• Palladio, the architect (1508-1580)• Hannah Collins. Ongoing history Filmsand photographs

• Maternities. Photographs by BruRovira

• Miquel Barceló. 1983-2009. Lasolitude organisative

• FotoPres ”la Caixa” 09• Contemporary masterpieces fromTurkey

• Fair trade. One product, one story• Federico Fellini. The circus of illusions• Childhood. Photographs by IsabelMuñoz

• Dali, Lorca and the Residencia deEstudiantes

CaixaForum Madrid


Cultural Programmes

Humanities

• Cycles of talks• Barceló and his works• FotoPres. Visions of war and conflicts.Violence and human conditions

• Fellini: the infinite spectacle• Tradition and modernity in theResidencia de Estudiantes (1910-1939)

• 70 years without Freud. Newperspectives in psychology andpsychiatry

• Dialogues with Africa• Lifelong Companion, companion! 100years with Miguel Hernández

• Modern images of the ancient world• Narrating in the era of image

• Meetings with commitment• Putting yourself in the other’s shoes• The child soldiers of Sierra Leone

• Cycles of discussions• The keys to success in the campaignsand political action of NGOs

• Sate Conference on ResponsibleConsumerism

• Cycles of cinema• Arty cinema: the cinema of TerenceDavies

• Cinema and social commitment• Singing from the soul. The voice andsinging in human expressiveness

Music

• Music courses• Chopin-Schumann. The bicentennialof two great composers

• Concerts in the CaixaForum musicseason

• Music concerts in the summer nights

• Jazz concerts on the Sleepless Night

• Experimental music

Exhibition in one of the halls at CaixaForum Madrid


Cultural Programmes

CaixaForum Palma, Lleida, Tarragona and the ”la Caixa” Foundation in Girona

CaixaForum Palma

DetailsOpened in 1993.4,000 m2.265,417 visits in 2010.256,104 visitors in 2010.LocationPlaza Weyler, 3, Palma de Mallorca.Facilities5 exhibitions halls.Auditorium holding 163 people.3 educational and/or multipurpose areas.

• Exhibitions: Zones of risk.”la Caixa” Welfare Projects ModernArt Collection; ; Salvador Dali andmagazines; German expressionists inHenri and Eske Nannen’s collection;Neuronal landscapes; Anglada-Camarasa, from his drawings.”la Caixa” Foundation’s collectionof works by Anglada-Camarasa ;Women. Reflection of cultures; Theforest; A floating world. Photographsby Jacques Henri Lartigue (1894-1986); Fair trade: one product, onestory; Anglada-Camarasa collection(permanent exhibition).

• Humanities: Cycles of talks: Anapproach to German expressionism;The skills of dialogue. Linkedpeninsular styles of literature;Architecture and cultural identity;Four days with Dante and the“Divine Comedy”; Meetings withcommitment; An approach to humanpain and suffering; Violence and theyoung. Cycles of cinema:The rockcultures.Courses: 14th course onclassical thought and culture: Theworld of muses: reading classicalpoetry; 15th course on thought andculture: Conversing with the classics:a way towards thought.

• Science and the environment:Cycles of lectures: Science andbeauty. Aesthetics, art and pleasure,as seen by science; Mysteries of thecosmos. 6 unanswered questions onthe Universe.

• Music: Concerts in the spring andautumn seasons at CaixaForum;Educational and family concerts.Filmed music: The voices of Allah. Themusical dimensions of Islam; Musicalafternoons: Let’s talk about the piano.Bicentenary of the birth of composersSchumann and Chopin.

• Educational and family activities:Workshop, dramatised visits toexhibitions, theatre and lectures.

CaixaForum Palma


Cultural Programmes

CaixaForum Lleida

DetailsOpened in 1989.1,835 m2.96,129 visitors in 2010.97,312 visits in 2010.LocationAvinguda Blondel, 3, Lleida.Facilities1 exhibition hall.Auditorium holding 230 people.2 educational and/or multipurpose areas.

• Exhibitions: Women. Reflection ofcultures; Alphonse Mucha (1860-1939). Seduction, modernity andutopia; Dali and magazines; Chasingthe Dream. The 8 MillenniumDevelopment Goals; Cambodia, landof hope; “Kaüpunke” – Fito Conesa.

• Cycles of lectures: Wisdom inAncient Greece; Historical biography:Spanish Moors on the 4th centenaryof their expulsion; the great tapestryof humanist culture in 16th centuryEurope; About emotions; The CivilWar through posters; Let’s talk aboutthe piano. Bicentennial of the birthof composers Schumann and Chopin;Science afternoons; Dialogues withAfrica; Meetings with commitment.

• Cycles of cinema: Personal opinions;D+D: Documentary plus Debate;Music from Central Asia.

• Music: CaixaForum music season;Diversons; Listen, discover and createyour own music! Music workshopand concert for the mentallyhandicapped.

• Scenic arts and dance: In search ofthe myth; Mythological loves.

• Multimedia• Programme for families• Activities for summer schools andcamps

CaixaForum Tarragona

DetailsOpened in 2001.1,429 m2.87,248 visitors in 2010.113,425 visits in 2010.LocationCristòfor Colom, 2, Tarragona.Facilities1 exhibition hall.Auditorium holding 177 people.2 educational and/or multipurpose areas.

• Exhibitions: Alphonse Mucha(1860-1939). Seduction, modernityand utopia; Chaplin in images, Daliand magazines; Cambodia, land ofhope; Hidden Spain. Photographsby Cristina García Rodero. ”la Caixa”Foundation’s Collection of ModernArt; NÚM3ROS from a good family;Forever.

• Cycles of lectures: Art and Greekand Roman antiquity; Historicalbiography; Mozart; Women travellers;Difficult conversations; The Civil Warthrough posters; Let’s talk about thepiano.

• Cycles of films and debate: D+D:Documentary plus Debate; Cinemamatinees; Music in cinema.

• Cycles of scenic arts: In search of themyth; Mythological loves; Karromato.

• Music: Concerts of the CaixaForummusic season.

”la Caixa” Foundation in Girona

DetailsExhibition hall under construction.Narcís de Carreras Auditorium.Workshop Room.17,040 visitors in 2010.17,502 visits in 2010.LocationCarrer Santa Clara, 11, Girona.FacilitiesAuditorium holding 220 people.2 educational areas.

• Educational activities in plasticarts, music, science, literature andtheatre.

• Humanities: Cycles of lectures: Artand Greek and Latin Antiquity; Let’stalk about the piano; Mendelssohncourse; Science afternoons.

• Cycles of scenic arts: In search ofmyths; Mythological loves.

• Music: Diversons concerts.

• In 2010 ”la Caixa” Foundation’sCultural and Social Centre in Gironaconducted part of its cultural programmein various places in the city whilework was being carried out to createCaixaForum Girona. This is in line withthe concept of CaixaForum being aplatform for culture in line with currentsocial concerns.


Cultural Programmes

New CaixaForum centres in Seville and Saragossa

CaixaForum Saragossa

• On 21 September 2010, the Chairmanof ”la Caixa” and ”la Caixa” Foundation,Isidro Fainé, and the mayor of Saragossa,Juan Alberto Belloch, laid the first stoneof the future CaixaForum Saragossabuilding.

• This event marked the beginning of theconstruction of CaixaForum Saragossa,scheduled to last some thirty months,after which the centre aspires to being anactivity centre that serves people, whereculture will be shown as an effectivetool to promote social cohesion andintegration.

• CaixaForum Saragossa, the newcultural, social and civic centre of”la Caixa” Welfare Projects, will be anew architectural reference point forthe city, located within the Digital Mileproject developed by the Town Council inSaragossa.

• The centre’s architectural project isthe work of the Estudio Carme Pinós,consisting of a four storey building witha singular structure, with two largeexhibition halls measuring 810 and 430 m2

suspended at different levels.

• The new building will be a greatsculptural feature and will create a newpublic space on the ground floor, withinthe El Portillo Park.

• ”la Caixa” Welfare Projects willpromote the knowledge and personalgrowth of people of all ages, conditionsand backgrounds at CaixaForumSaragossa, providing a wide rangeof activities which will include artexhibitions, music and poetry festivals,cycles of talks, social meetings,educational and family workshops andactivities aimed at the elderly.

CaixaForum Seville

• In 2010, work progressed to finish thearchitectural project to turn the city’sRoyal Dockyards –which Alfonso X TheWise ordered to be built– into the newcultural and social centre of ”la Caixa”Welfare Projects in Seville.

• This project, awarded to thearchitects’ studio led by GuillermoVázquez Consuegra to install the futureCaixaForum Seville in this historicalbuilding, will require the building to becompletely refurbished while preservingall its valuable architectural features.

• The future centre will highlightthe most outstanding historical andarchitectural features of the RoyalDockyards complex. The aim is to turnit into the building which will house thefuture CaixaForum while restoring itscultural and historical wealth. Thus, mostof the work will affect the upper structureof the building, so as to keep the areaon the ground floor untouched. Theproject is also committed to constructinga sustainable, environmentally friendlybuilding.

• Steel and wood, emblematic materialsin the world of navigation, evoke thehistorical use of the Dockyards and willbe the materials mainly used, coupledwith glass. The mixing of these with barebrick walls will provide the palette ofcolours for the new building.

• With the objective of making it a publicspace open to all, the Royal Dockyardcomplex will be open to the city througha new public square.

• The future CaixaForum, located in thecapital of Andalusia, will have similarfeatures to those of the CaixaForum inMadrid and Barcelona, in which a widerange of activities to spread scientific,technical and cultural knowledge will bepromoted.

Architect’s model of CaixaForum SevilleArchitect’s model of CaixaForumSaragossa


Cultural Programmes

Exhibitions

Of all the cultural activities carriedout by ”la Caixa” Welfare Projects,exhibitions are one of the mostimportant and have the greatestimpact. In addition to the permanentexhibitions of the ContemporaryArt Collection of ”la Caixa” WelfareProjects, the Institution’s own centresalso host a wide range of exhibitionson various themes that are constantlyrenewed. Outside its centres, theInstitution also organises travellingexhibitions throughout Spain topromote culture among all kinds ofpublics.

Travelling exhibitions

• ”la Caixa” Welfare Projects’ travellingexhibitions are held in halls provided bylocal entities and in marquees housedin cities throughout Spain to allowfree access to the exhibitions for thegeneral public. These are exhibitionsaimed at popularising photography andhistory which are often accompaniedby complementary activities aimed atfamilies and schools in the town wherethey are displayed. In 2010 ”la Caixa”Welfare Projects held 73 travellingexhibitions.

• Through these, Welfare Projectscontributes to making society aware ofsocial matters, stimulating knowledgeand creating areas in which to promoteculture which become veritable meetingplaces.

• In 2010 a total of 16 differentexhibitions were shown and heldthroughout Spain. As regards thecultural ambit, worthy of mention arethose devoted to photography such asIn search of silver; Andalusia imagined.Photographs 1910-1930; Avelino Pi.Sports photography; The archaeologicalexpedition of 1907 to the Pyrenees, andAthletics: values and emotion. In additionto the themed exhibitions and thosedevoted to history, such as Europe wasthe Route. Pilgrimage to Santiago in theMiddles Ages; Iberians. Our civilisationbefore Rome, and The castles of Al-Andalus; and exhibitions concerning thearts, such as From Durero to Morandi.Engravings from the William Cuendet &Atelier de Saint-Prex Foundation; SalvadorDali and magazines; Designers due to amyth. A Tribute to Toulouse-Lautrec, andWomen, the reflection of cultures; plusthe exhibitions featuring works from the”la Caixa” Foundation Collection, suchas New Crew for the Pequod. ”la Caixa”Foundation’s Collection of Modern Artand The skin of the real. Engravings byAntoni Tàpies.

• Also, last year ”la Caixa” WelfareProjects organised an exhibition entitledThe Tapestry Collection from the OldCathedral in Lleida, one of the mostnotable events of the centenary of”la Caixa” in Lleida which, for thefirst time, enabled the restoration andbringing together all the tapestriesfrom this collection dating from the16th century in one exhibition. TheInstitution also cooperated in organisingthe exhibition Matisse and the Alhambra(1910-2010), which commemorated thecentenary of the French painter’s visit tothe site in 1910.

Art in the Street

• The Art in the Street programme is apioneering initiative of ”la Caixa” WelfareProjects which began in 2007 with theaim of bringing art closer to the publicand breaking down the barriers whichoccasionally separate them frommodern art.

• The exhibitions are held in the street,in emblematic areas provided by variouscities to achieve a closer, more enrichinglink between the works exhibited andtheir viewers. This project brings thepublic closer to large works by renownedartists with the aim of establishing adialogue between the works and thearchitecture of the place in which theyare exhibited.

• In 2010, Welfare Projects continued thisprogramme organising 4 exhibitions onAuguste Rodin in the cities of Barcelona,Saragossa, Las Palmas de Gran Canariaand Cadiz. This exhibition features sevenmonument-size sculptures from the RodinMuseum in Paris: The Thinker and sixstudies of the city leaders who feature inThe Burghers of Calais.

The Burghers of Calais


Cultural Programmes

Music

Sharing the experience of listeningto music and taking part in it usuallyhas positive social effects. ”la Caixa”Welfare Projects devotes severalprogrammes to popularising music,organises participative concertswith non-professional singers andpromotes music seasons, schooland family concerts and specialisedcourses.

15 years of participative concerts

• These concerts are a unique experiencethat brings together renownedprofessional musicians with amateurchoral singers in a joint interpretation ofone of the most famous and significantworks of all times. Starting in Barcelonain 1995, this project had the dualobjective of recognising and stimulatingthe social practice of singing and musicthat takes place in choral societies andpromoting social participation in the areaof culture. In 2010 ”la Caixa” WelfareProjects celebrated its 15th edition and,throughout these years, over 24,000participants / individuals have sung thechoral parts of various works and over235,000 people have attended theconcerts.

• In 2010 over 44,000 persons attendedthe 18 participative concerts organisedby the Institution. 11 participativeconcerts of Handel’s Messiah were heldin eight cities: Madrid, Barcelona, Seville,Saragossa, Santander, Palma de Majorca,Las Palmas de Gran Canaria and Lleida.In 2010 members of non-professionalchoral societies were also able to sing inthe choral parts of Carmina Burana byCarl Orff for the second consecutive yearin Madrid and for the first time in Oviedo.

• In addition, in 2010 ”la Caixa” WelfareProjects scheduled new works in aparticipative format. One of these wasMozart’s Requiem, performed by over482 participants / individuals in theAuditori in Barcelona. The cities of Gironaand Santiago de Compostela also heldthe participative concert of Mozart’s TheCoronation Mass.

Diversons. Music for integration

• Welfare Projects runs the programmeDiversons to spread knowledge of thetraditional music of the countries oforigin of many people now living inSpain, with the objective of developingcloser links and cultural exchange

between immigrants and the localpopulation. The participants, selectedthrough an annual contest, are traditionalworld music performers. 148 concertsall over Spain, attended by over 71,000people, took place in 2010.

School and family concerts

• This programme seeks to bringmusic into schools (infants, primaryand secondary) as an activity that isboth educational and playful. Schooland family concerts offer children theexperience and pleasure of attendingattractive and stimulating events. Theyalso give teachers the opportunity toround off their pupils’ music educationwith an activity that can be carriedout both in the classroom, with theteaching material that Welfare Projectsmakes available before the concert, andby attending the school concerts. In2010 the following productions wereperformed: The Super-barber of Seville,The Collector of Landscapes, Metal andits colours, Cinderella, Sakapatú! A tripthrough Andean music, The Moussakis.Music from the Balkans, Within a suitcaseand A glass of mint tea. Music from theMaghreb.

Antiqva

• Through this programme, WelfareProjects promotes Ancient Musicconcerts that are held in the open air inwell-known spaces in various Spanishcities. The objective of the programmeis to bring Ancient Music to the generalpublic, performed according to historicalcriteria and instruments, and to supportmusicians, selected through an annualcontest, at the start of their professionalcareers. In 2010, 59 concerts by ninemusic groups were performed in 11cities.

Participative concert of Handel’s Messiah

Governing Bodies of ”la Caixa” Welfare Projects

Financial Statements of ”la Caixa” Welfare Projects

2010 Data of ”la Caixa” Welfare Projects




Committee MembersSalvador GabarróJordi MercaderJavier GodóMontserrat CabraAina CalvoJuan-José LópezMontserrat LópezJusto Bienvenido Novella

Secretary (non-member)Alejandro García-Bragado

Deputy Secretary (non-member)Óscar Calderón


Board of the ”la Caixa” Foundation

Governing Bodies of ”la Caixa” Welfare Projectson 31 December 2010

Executive Officers

President and Chief Executive Officerof ”la Caixa”Juan María Nin

Executive President of Socialand Cultural Outreach ProjectsJaime Lanaspa

Honorary President

José Vilarasau

Chairman

Isidro Fainé

Deputy Chairmen

Ricardo Fornesa (First Deputy Chairman)

Salvador Gabarró

Jordi Mercader

Juan María Nin

Board Members

Victòria Barber



Montserrat Cabra

Aina Calvo

José Francisco de Conrado

Javier Godó

José-Delfín Guardia

Monika Habsburg

Inmaculada Juan

Jaime Lanaspa

Juan-José López

Montserrat López

Dolors Llobet

Rosa Maria Mora

Miguel Noguer


Jordi Portabella

Leopoldo Rodés

Javier Solana

Roberto Tapia



President and Chief Executive OfficerJaime Lanaspa

Secretary (non-member)Alejandro García-Bragado

Deputy Secretary (non-member)Óscar Calderón




Executive DirectorJaime Lanaspa

CEO of the Accessible HousingProgrammeJaume Cabré

Senior Management of ”la Caixa” Welfare Projects


Managing DirectorJaime Lanaspa

Assistant Managing DirectorElisa Durán

General SecretaryLuis Reverter

Deputy Secretary GeneralEsther Planas

Deputy Secretary GeneralAlbert Sòria

Director of the InternationalDepartmentS.A.R. La Infanta Doña Cristina

Director of CommunicationJesús Nemesio Arroyo

Senior Management of the ”la Caixa” Foundation

Director of Science, Research and theEnvironmentEnric Banda

Director of the Social ActionFrancisco Javier Bertolín

Director of Organisation andGeneral ServicesJordi Cabedo

Director of Territorial ActionRafael Chueca

Director of the Information SystemsDepartmentRosa Maria Cirera

Director of the Human ResourcesSilvia Ciurana

Director of CultureIgnasi Miró

Director of the Fellowship and SocialStudies AreaRosa Maria Molins

Director of Educational InitiativesJosep Ollé

Director of ProductionEnric Sagrera

Director of Social IntegrationMarc Simón

Science DirectorJorge Wagensberg

Director of Social MarketingDaniel Zafra



Welfare ProjectsExpenditure in 2010

PROGRAMMES IN THOUSANDS OF EUROS

Social programmes 326,089Environmental and Scientific programmes 58,937Cultural programmes 49,711Educational and Research programmes 27,892Total 462,629

BY TYPE IN THOUSANDS OF EUROS

Investment in property, plant and equipment 94,169Programme maintenance costs 368,460Total 462,629

Financial Statements of ”la Caixa” Welfare Projects

Balance Sheet of ”la Caixa” Welfare Projects

Below are details of the assets and liabilities of ”la Caixa” Welfare Projects at 31 December 2010, after expenditure for the year andbefore allocation of 2010 ”la Caixa” profit, in thousands of euros

Assets31/12/2010 31/12/2009

Current assets 359,155 400,259Cash 201 213Accounts receivable 96 175Cash available in ”la Caixa” 358,858 399,871Investments 165,460 82,907Financial investments 183,313 100,250Security price fluctuation fund (17,853) (17,343)Non-current assets 364,015 366,300Property, plant and equipment 514,329 502,964

Land and buildings 358,749 349,582Furniture and fixtures 155,580 153,382

Accumulated depreciation (150,314) (136,664)Buildings (90,414) (79,455)Furniture and fixtures (59,900) (57,209)

Total 888,630 849,466

Liabilities31/12/2010 31/12/2009

Current liabilities 244,167 257,209Deferred expenses payable 97,727 134,210Other accounts payable 272 145”la Caixa” Foundation 146,168 122,854Welfare Projects own funds 644,463 592,257Welfare Fund 114,988 143,050Welfare Projects reserves 529,475 449,207

Total 888,630 849,466

Welfare ProjectsBudget for 2011

PROGRAMMES IN THOUSANDS OF EUROS

Social programmes 335,277Environmental and Scientific programmes 68,148Cultural programmes 63,888Educational and Research programmes 32,687Total 500,000

BY TYPE IN THOUSANDS OF EUROS

Investment in property, plant and equipment 47,102Programme maintenance costs 452,898Total 500,000

Concept and designExit de disseny

Make-up and printingwww.cege.es

Cover photographsExit de disseny

PhotographsPedro Madueño: pp. 4, 28.Exit de disseny: pp. 14, 15, 17, 33, 36,39, 45, 50, 58, 63, 64, 67, 68, 71, 73,74, 75, 76, 88, 91, 94, 96, 101, 122,123, 124, 128, 130, 167, 170, 181.Daniel Aznar: pp. 85, 87.Carles Nin Barrull (Nin Studio): p. 126.Mariona Villavieja: p. 132.Antonella Delussu: p. 133.Txema Salvans: pp.136, 137, 140, 143,144, 147, 148, 150, 156, 160, 161, 163,167, 168, 172.Joan Masats: pp. 139, 141, 151, 155.Jordi Nieva: pp. 145, 158, 178.Roc Herms: p. 146.Saatchi&Saatchi / Lavinia: p. 149.

Gavi Alliance - Indrias Getachew / UnicefEthiopia: p. 152.Amocine / CIC Batá: p. 153.Lluís Salvadó: p. 154.Máximo García: pp. 159, 164, 169, 179.CRAM: p. 162.Michael N. Paras / Agefotostock: p. 165.Generalitat de Catalunya: p. 170.Desconegut: p. 171.Olga Planas: pp. 173, 174.Javier Saguillo: p. 175.Estudi d’arquitectura Guillermo VázquezConsuegra: p. 177.Estudi d’arquitectura Carme Pinós:p. 177.

2010 ”la Caixa” Annual ReportLeadership, trust and social commitment

2010 ”la Caixa” A

nn

ual R

epo

rt

”lA CAixA” GROUP HiGHliGHTSFinancial information

CHANGE

Figures in millions of euros 2010 2009 AMOUNT %

Balance SheetTotal assets 285,724 271,873 13,851 5.1Total Banking Business volume 437,443 415,825 21,618 5.2

Loans and credits, gross 189,546 178,026 11,520 6.5Total customer funds 247,897 237,799 10,098 4.2

Investee portfolio:Market value of listed companies 18,685 20,118 (1,433) (7.1)Unrealised gains on listed companies 2,709 3,945 (1,236) (31.3)

income StatementNet interest income 3,152 3,932 (780) (19.8)Recurring gross income 6,745 7,187 (442) (6.1)Recurring net operating income 3,323 3,622 (299) (8.3)Recurring profit before non-controlling interests 1,822 2,004 (182) (9.0)Recurring profit attributable to the ”la Caixa” Group 1,507 1,710 (203) (11.9)Net extraordinary profit (200) (200) 0 –Profit attributable to the ”la Caixa” Group 1,307 1,510 (203) (13.4)Efficiency and ProfitabilityRecurring efficiency ratio (Administrative expenses / Gross income) 43.6% 42.9% 0.7ROE (Recurring attributable profit / Average own funds) 9.3% 11.3% (2.0)ROA (Net recurring profit / Average total assets) 0.7% 0.8% (0.1)RORWA (Net recurring profit / Risk-weighted assets) 1.4% 1.6% (0.2)Risk ManagementNPL ratio 3.71% 3.42% 0.29Provisions for credit losses 5,025 3,914 1,111NPL coverage ratio 70% 62% 8NPL coverage ratio including mortgage collateral 140% 127% 13”la Caixa” liquidity 19,638 21,208 (1,570)Capital Adequacy - BiS iiCore capital 8.6% 8.7% (0.1)Tier 1 9.9% 10.4% (0.5)Capital ratio (BIS II ratio) 11.8% 11.0% 0.8Own funds 17,421 16,696 725 4.3Eligible capital 19,198 17,251 1,947 11.3Surplus capital 6,130 4,667 1,463 31.3Risk-weighted assets (RWA) 163,348 157,300 6,048 3.8Commercial activity and resources (number)

Employees – ”la Caixa” 25,288 24,944 344 1.4– ”la Caixa” Group 28,651 27,505 1,146 4.2

Branches 5,409 5,326 83 1.6Self-service terminals 8,181 7,951 230 2.9Cards in circulation – ”la Caixa” 10,344,092 10,293,683 50,409 0.5POS terminals 169,966 167,993 1,973 1.2Línea Abierta – ”la Caixa” internet channel

– Total customers 6,620,148 6,020,192 599,956 10.0– Users 3,301,264 2,964,355 336,909 11.4

Corporate ResponsibilityDirect contribution of ”la Caixa” operations to Spain’s GDP 0.49% 0.49%Diversity: % men / women employed 52/48 53/47Number of projects financed in line with the Equator Principles 55 65Number of employees taking part in the Corporate Volunteer programme 3,286 3,061 225 7.4Number of microloans granted 36,845 32,008 4,837 15.1

Welfare ProjectsBudget 2011 Millions of euros %

Social programmes 335 67.0Environmental and scientific programmes 68 13.6Cultural programmes 64 12.8Educational and research programmes 33 6.6Total 500 100

2010 ”la Caixa” Annual Report · CAJA DE AHORROS Y PENSIONES DE BARCELONA - ”LA CAIxA”...

Documents

Transcript of 2010 ”la Caixa” Annual Report · CAJA DE AHORROS Y PENSIONES DE BARCELONA - ”LA CAIxA”...