Sabadell2Q15 Results

July 24th, 2015

Disclaimer

Sabadell cautions that this presentation may contain forward looking statements with respect to the business, financial condition, results of operations, strategy, plans and objectives of the Sabadell group. While these forward looking statements represent our judgement and future expectations concerning the development of our business, a certain number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market. Macroeconomic, governmental, political and regulatory trends, (2) movements in local and international securities markets, currency exchange rate, and interest rates, (3) competitive pressures, (4) technical developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparts. These risk factors could adversely affect our business and financial performance published in our past and future filings and reports, including those with the Spanish Securities and Exchange Commission (Comisión Nacional del Mercado de Valores).

Sabadell is not nor can it be held responsible for the usage. Valuations, opinions, expectations or decisions which might be adopted by third parties following the publication of this information.

Financial information by business areas is presented according to GAAP as well as internal Sabadell group´s criteria as a result of which each division reflects the true nature of its business. These criteria do not follow any particular regulation and can include forecasts and subjective valuations which could represent substantial differences should another methodology be applied.

The distribution of this presentation in certain jurisdictions may be restricted by law. Recipients of this presentation should inform themselves about and observe such restrictions.

These slides do not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any securities nor shall they or any one of them form the basis of or be relied on in connection with any contract or commitment whatsoever.

1. Quarterly highlights2. 2Q15 Results

3. Commercial activity

4. Liquidity and ALCO portfolio

5. Capital and risk management

6. Update on TSB

2

Quarterly highlights

� On 30 June 2015, the PRA approved the acquisition of TSB. Consolidated accounts include full balance sheet but 0 days of P&L

� NII grows by 2.0% since March driven by lower cost of funding

� Solid performance in net fee income, +1.1% QoQ

� Strong gains from financial operations in a volatile quarter

� Recurrent costs are unchanged from the first quarter

� The closing date of TSB generates a €207M negative goodwill adjustment which impacts positively the group´s P&L

� Extraordinary gains from financial operations and the negative goodwill, grossed up, are neutralised by additional impairments, resulting in increased coverage of NPLs to 52.8% (53.7% including TSB)

� Loan volume is stable in the quarter while the stock of total deposits is up slightly

� NPLs continue to show a favourable evolution with a €0.9bn reduction; NPL ratio now stands at 11% (9% including TSB)

3

1. Quarterly highlights

2. 2Q15 Results 3. Commercial activity

4. Liquidity and ALCO portfolio

5. Capital and risk management

6. Update on TSB

4

June 2015 results

*

* June 2014 numbers are on a comparable basis, as if the payments related to the DGF would not have been accrued.

Note: June 2014 reported net profit was €167.7 million, accruing the payments related to the DGF.

Jun. 14 comp. basis

Jun. 15 % var 15/14

Net Interest Income 1,076.0 1,299.0 20.7%

Equity Method & Dividends 8.5 27.3 ---Commissions 414.5 454.0 9.5%Trading Income & Forex 1,171.2 1,196.6 2.2%Other Operating Results 12.3 -16.9 ---Gross Operating Income 2,682.4 2,960.0 10.3%

Personnel Costs -609.7 -615.5 1.0%Administrative Costs -293.4 -292.5 -0.3%Depreciations -135.9 -143.5 5.5%Pre-provisions Income 1,643.4 1,908.6 16.1%

Total Provisions & Impairments -1,415.3 -1,749.1 23.6%Gains on sale of assets 82.1 -3.3 ---Negative goodwill 0.0 207.4 ---Profit before taxes 310.2 363.5 17.2%Taxes and others -83.4 -11.3 ---

Attributable Net Profit 226.8 352.2 55.3%

5

*

NII grows in the quarter driven by lower cost of funding

Net interest income evolutionEuros in million

YoY growth :

+20.7%

+2.0% QoQ

545.9574.1

609.7643.1 655.9

2Q14 3Q14 4Q14 1Q15 2Q15

6

Customer spread is up while loan yield is reduced as a result of lower interest rates

Margin evolutionIn percentage

Customer spread

Net interest margin as a % of ATA

Cost of customer funds

Customer loan yield

Customer loan yield and cost of customer funds In percentage

1.75%1.59%

1.62%

1.86%

2.06%2.22%

2.29% 2.35%2.44% 2.47%

1.14%1.00% 1.05%

1.17%1.29%

1.36% 1.40%1.49%

1.57% 1.59%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

3.94%3.66%

3.49% 3.51%3.50% 3.47% 3.39% 3.32% 3.32% 3.20%

2.19% 2.07%1.87%

1.65%1.44%

1.25% 1.10% 0.97% 0.88% 0.73%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

7

The cost of term deposits continues to be reduced …

Contractual rates on term depositsIn percentage

Stock New production/renewals

New term deposits at

0.39%

3.58%3.36%

3.13%2.84%

2.37%2.16%

1.83%1.67%

1.52%1.38%

1.18%

3.39%

2.16%1.85%

1.61%1.51%

1.29%1.05%

0.75%0.60%0.49% 0.39%

Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15

8

… and wholesale funding is being renewed at lower rates

Wholesale funding cost evolutionIn percentage

Recent wholesale maturitiesEuros in million

Recent wholesale issuancesEuros in million

Note: Wholesale issuances and maturities over €750M. GGB refers to senior debt issued with a specific guarantee from the Spanish Government.

3.54% 3.51%3.41%

3.05%

2.71%

2.56%

Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

9

Instrument Amount Coupon Issue date

Covered bond 1,250 0.875% Nov-14Covered bond 750 0.375% Jun-15

Instrument Amount Coupon Maturity date

Covered bond 1,000 3.375% Oct-14GGB 1,065 3.000% Nov-14Covered bond 1,200 3.625% Feb-15Covered bond 1,500 3.250% Jun-15

Credit spreads are gradually being reduced in a low interest rate environment

Evolution of loan spreads by segmentIn percentage

Our strong SME franchise allows Sabadell to partially cushion the impact of lower spreads

Back book loan spreads by segmentIn basis points

Mortgages to individualsTotal SMEs

Corporates

Back book

Front book

Back book

Front book

Back book

Front book

Back book

Front book

Back book

Front book

Back book

Front book

Mortgages to individuals 87 227 89 214 90 209 92 201 94 187 95 173

SME 270 500 277 492 282 494 285 445 284 459 282 417

Corporates 268 327 266 302 260 297 243 265 229 233 219 233

2Q151Q14 2Q14 3Q14 4Q14 1Q15

186 187 186 184 181 178

87 89 90 92 94 95

270 277 282 285 284 282

268 266 260243

229 219

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

10

48.6 48.9 53.0 55.6 57.9

55.3 53.6 57.0 54.2 53.9

109.6 112.7121.3 116.0 116.4

2Q14 3Q14 4Q14 1Q15 2Q15

Growth in commission income remains high at 9.5% YoY

Commission income evolutionEuros in million

Asset Mgmt1 ServicesLending

1 Includes mutual funds commissions and pension funds and insurance brokerage.

213.5 215.1231.3 225.8

YoY growth :

+9.5%

228.2

11

2,953 4,312

3,4173,322

4,902

7,4031,531

3,806

901

1,387

June 2014 June 2015

Mutual funds are performing well

Volume evolution YoY, by type of fund Euros in million

� An increase of 47.6% in funds under management

� Higher margin products growing at a faster pace

13,705

20,230

Equity fundsBalanced funds

Fixed income funds Guaranteed funds

SICAV, External funds and Others

+47.6%

-2.8%

+46.0%

+51.0%

+148.6%

+53.9%

12

286.0 295.0 295.5 295.5 295.3

24.91.8 0.6 5.6

19.2

2Q14 3Q14 4Q14 1Q15 2Q15

Recurrent personnel costs are stable …

Personnel expenses evolutionEuros in million

Recurrent Non-recurrent

310.9 296.8 296.1 301.0314.5

13

Recurrent

personnel expenses :

-0.1% QoQ

139.4 137.9 138.5 145.2 145.0

2.2 0.91.1 1.2

2Q14 3Q14 4Q14 1Q15 2Q15

… and so are general expenses

General expenses evolutionEuros in million

Recurrent Non-recurrent

141.6 137.9 139.3146.3 146.2

14

Recurrent

general expenses :

-0.2% QoQ

1. Quarterly highlights

2. 2Q15 Results

3. Commercial activity4. Liquidity and ALCO portfolio

5. Capital and risk management

6. Update on TSB

15

Jun-14 Mar-15Jun-15 ex-TSB Jun-15

% Var. YoY ex-TSB

% Var.QoQ ex-TSB

Total assets 161,557 167,480 164,247 203,959 1.7% -1.9%Of which:

Gross loans to customers ex repos 119,507 118,527 118,416 148,963 -0.9% -0.1%Fixed income portfolio 21,858 27,259 24,323 25,741 11.3% -10.8%

Total liabilities 150,719 155,901 154,769 191,883 2.7% -0 .7%Of which:

On-balance sheet customer funds 95,043 94,899 95,345 130,370 0.3% 0.5%Term funds1

55,625 49,419 45,305 49,584 -18.6% -8.3%Savings accounts 11,471 12,680 13,495 32,688 17.6% 6.4%Current accounts 27,947 32,800 36,545 48,098 30.8% 11.4%

Wholesale funding 24,369 22,340 21,786 22,361 -10.6% -2.5%ECB Funding 5,500 8,900 11,000 11,000 100.0% 23.6%

Off-balance sheet funds 28,597 34,215 35,410 35,410 23.8 % 3.5%Of which:

Mutual funds 13,705 18,674 20,230 20,230 47.6% 8.3%Pension funds 4,375 4,529 4,362 4,362 -0.3% -3.7%Third party insurance products 7,916 7,220 7,083 7,083 -10.5% -1.9%

Loan book is stable and total stock of deposits continue to growCustomer funds and loans evolutionEuros in million

1 Term funds include term deposits and other funds placed in the retail network. Exclude repos. 16

102,471101,807

102,250

103,811104,581

2Q14 3Q14 4Q14 1Q15 2Q15ex-TSB

Positive growth in total performing loans

Performing loans evolution Euros in million

+0.7%QoQOrg

2Q15incl. TSB

134,875

17

28.9

27.9

28.328.6

29.4

29.930.1

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

SME loan book growth shows positive momentum albeit slow

SME and company loans evolution, ex-TSBEuros in billion

SME and company loan demand in positive territory

Note: SME and company loans include loans to SMEs, corporates and public sector and exclude NPLs. 18

Improving market shares in companies

Note: 2015 data as of June 2015 or last month available.

LoansExport docum.

creditPoS turnover

10.56% 29.79% 14.54%

10.74% 31.48% 15.88%Companies

Dec.14

2015

Market shares by products

19

0200400600800

1,0001,2001,4001,6001,8002,000

Jan Apr Jul Oct

New mortgage production showing a steady growth

Cumulative monthly residential mortgage production, ex-TSBEuros in million

New residential mortgage production 50% above 2014 level2015

€ 1,110M

+50% YoY

2014

€ 741M

20

Improving market shares in individuals

Investment funds

Credit card turnover

Life Insurance

Household deposits

5.11% 7.64% 4.17% 5.31%

5.72% 7.89% 4.90% 5.49%Individuals

Dec.14

2015

Market shares by products

21

1

Note: 2015 data as of June 2015 or last month available.1 According to Inverco. 2 Insurance calculated per number of contracts.

2

With the highest standards in quality of service

Source: STIGA, EQUOS (Objective Quality Analysis in Banking Networks, 2Q 2015).

Sabadell stays well above the rest of the sector

Level of service quality Evolution of Sabadell quality index vs sector

22

7.54

7.217.32

7.20 7.24

6.90 6.89

7.167.39

6.956.77

6.61

6.11 6.06 6.01 6.036.29

6.55

2007 2008 2009 2010 2011 2012 2013 2014 2Q15Sabadell Sector

27,947 32,007 31,099 32,800 36,54548,098

11,471 11,663 12,176 12,680 13,495

32,68855,625 53,705 51,186 49,419 45,305

49,58413,705 14,665 15,706 18,674 20,230

20,230

2Q14 3Q14 4Q14 1Q15 2Q15ex-TSB

2Q15incl.TSB

Improving overall position in on-balance sheet customer fundsEvolution of customer funds and mutual funds Euros in million

Current accounts On-balance sheet term funds

Mutual funds

Note: On-balance sheet term funds include term deposits and other funds placed in the retail network (preference shares, mandatory convertible bonds, senior debt, commercial paper and other). Exclude repos.

Stock of current accounts (ex-TSB):

+11.4% QoQ+30.8% YoY

23

Sabadell’s flagship product “Cuenta Expansión”is driving growth in current accounts

Savings accounts

1. Quarterly highlights

2. 2Q15 Results

3. Commercial activity

4. Liquidity and ALCO portfolio 5. Capital and risk management

6. Update on TSB

24

Deposits71.9%

Retail issues 1.7%

Repos4.1%

ICO financing 3.4%

Wholesale funding12.7%

ECB6.2%

Covered bonds 57.3%

Senior debt 6.0%

Prefs + Subordinated

6.6%

ECP11.6%

Securitisation 13.8%

GGB4.7%

Maintaining a balanced funding structure

Funding structure Wholesale funding breakdown

25Note: Including TSB

9.5 8.5

15.313.6

2.52.3

Mar-15 Jun-15

Actively managing ALCO portfolio in a volatile market and a steepening yield curve

Fixed income portfolio evolution (ex-TSB)Euros in billion

Spanish public debt Other

Life insurance portfolio

ALCO portfolio (ex-TSB)Euros in billion and in percentage

Yield 2.5%

Evolution of ALCO portfolio in run-off scenario (ex-TSB)Euros in billion, yield in %

ALCO portfolio

ALCO portfolio

26

2015e 2016e 2017e 2018eAmount (€bn ) 21.1 19.3 18.3 17.8Yield (%) 2.4% 2.3% 2.4% 2.5%

Mar-15 Jun-15

ALCO portfolio 24.8 22.0

% of total assets (ex-TSB) 14.8% 13.4%

Duration (in years) 5.2 3.6

ECB liquidity position 8.9 11.0

We actively gauge the exposure range

Fixed income portfolio maintains its geographical diversification

ALCO portfolio composition evolution (ex-TSB)Euros in billion

27

Sep-14 Dec-14 Mar-15 Jun-15

Spanish Government 12.1 8.6 9.5 8.5Italian Government 3.8 4.7 6.0 5.4US Government - 1.5 2.8 2.6Other Government 1.3 1.5 1.6 1.5

of which:

Portuguese Government 0.8 0.7 0.8 0.8Mexican Government 0.3 0.6 0.6 0.6Netherlands Government 0.1 0.1 0.1 0.1

Agencies 1.5 1.5 1.6 1.5Covered Bonds 1.5 1.5 1.5 0.7Corporates & Fin 1.5 1.6 1.8 1.9

TOTAL 21.7 21.0 24.8 22.0

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Managing liquidity efficiently

Wholesale funding maturitiesEuros in million

ECB liquidity positionEuros in million

Maturity by product type Euros in million

2015 2018 2019 2020 202120172016 >20222022

8,800

5,5007,200

11,000

Dec-13 Jun-14 Dec-14 Jun-15

28

476 2.44%

4,377 2.62%

3,1473.55% 1,679

3.44% 924 3.42%

1,547 3.09%

2,6092.51%

1,144 3.27%

711 2.28%

4Q15 2016 2017 2018 2019 2020 2021 2022 >2022 Outst. AmountCovered Bonds (CH) 476 2,876 2,022 1,561 924 1,122 2,018 1,119 689 12,807GGB 0 0 1,059 0 0 0 0 0 0 1,059Senior Debt 0 1,183 0 100 0 0 0 25 0 1,308Preferred Shares and Subordinated Debt 0 318 66 0 0 425 581 0 15 1,405Other mid- and long-term financial instruments 0 0 0 18 0 0 10 0 7 35Total 476 4,377 3,147 1,679 924 1,547 2,609 1,144 711 16,614

Note: Including TSB

1. Quarterly highlights

2. 2Q15 Results

3. Commercial activity

4. Liquidity and ALCO portfolio

5. Capital and risk management6. Update on TSB

29

11.8% 11.4% 11.5%

-1.52%

-0.21%-0.45%

1.80%

0.06%

March 15 RWATSB

RWASAB

Intangibles Capitalincrease

Profit /others

June 15

11.4%11.8% 11.7% 11.8% 11.5%

1.1%1.2% 1.1% 1.0% 1.5%

June 14 Sep. 14 Dec. 14 March 15 June 15

TSB transaction is capital neutralas announced

Common Equity Tier 1 and Tier II evolution

30

CET1 fully loaded at 11.2%

CET1 quarterly change

CET 1

Tier II

Mar 15 June 15

RWA 74,945 87,810

CET 1 8,847 10,082

TIER I 8,847 10,082

TIER II 777 1,363

CET 1 11.8% 11.5%

TIER I 11.8% 11.5%

TIER II 1.0% 1.5%

Ratio BIS 12.8% 13.0%

NPL ratio has been reduced significantly from peak levels …

Evolution of NPL ratio and coverage of NPLsIn percentage

Note: NPL ratio is calculated including contingent risk and 20% of the APS.

TSB takes the group back to single digit NPL ratio

Coverage of NPLs ex-TSB: 52.8%

13.85% 13.44% 12.74% 11.68% 10.98%9.01%

53.8% 51.9%49.4% 51.4% 52.8% 53.7%

2Q14 3Q14 4Q14 1Q15 2Q15ex-TSB

2Q15

31

NPL ratio

NPL coverage

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

Real Estate development and/or construction purposes 52.56% 52.11% 51.47% 52.17% 49.21% 47.21%

Construction purposes non-related to real estate dev. 8.38% 7.41% 7.35% 8.08% 9.03% 8.74%

Large corporates 6.19% 6.13% 6.30% 6.46% 6.55% 6.14%

SME and small retailers and self-employed 13.08% 13.08% 13.11% 12.60% 12.20% 11.96%

Individuals with 1st mortgage guarantee assets 9.85% 9.75% 9.23% 9.25% 9.12% 8.76%

NPL ratio 13.94% 13.85% 13.44% 12.74% 11.68% 10.98%

… with improvement across all segments

Evolution of NPL ratios by segment ex-TSBIn percentage

Note: NPL ratio is calculated including contingent risk and 20% of the APS. 32

25,878 25,86025,347

24,75823,922

23,189

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

8,151 8,474 8,569 8,848 9,059 9,227

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

17,727 17,386 16,777 15,910 14,863 13,962

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

The stock of NPLs continues the downward trend …

NPL ex-TSB evolution ex-TSB Data include 20% of APS. Euros in million €0.9bn further reduction of

NPLs during 2Q15

The decline in total problematic assets continues

On-balance sheet RE assets evolution ex-TSBData include 20% of APS. Euros in million

Total problematic assets ex-TSBData include 20% of APS. Euros in million

Note: NPLs include contingent risk. 33

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

Ordinary net entries 25 -244 -385 -569 -802 -731Change in RE assets 77 323 96 279 211 167Net entries + Change in RE assets 102 79 -289 -290 -591 - 563

Write-offs 265 97 224 298 245 170

Re assets and NPL quarterly change -163 -18 -513 -588 -8 36 -733

… with improved dynamics in the last quarters

Evolution of NPLs and RE assets, ex-TSB Data include 20% of APS. Euros in million

Total problematic assets are reduced by €733M

34

Maintaining good real estate sales results

Number of foreclosed assets sold and discount versus gross value

35

Sabadell continues to liquidate RE assets at a high pace, reducing the discount to gross value

6,278

4,968 5,190

1H13 1H14 1H15

60.4% 52.4% 46.4% Discount versus gross value

Number of units sold

1. Quarterly highlights

2. 2Q15 Results

3. Commercial activity

4. Liquidity and ALCO portfolio

5. Capital and risk management

6. Update on TSB

36

Update on the TSB takeover

� On 30 June 2015 Sabadell received approval from the PRA regarding the change of control of TSB and consequently the offer became wholly unconditional in all respects. This date also reflects the date of consolidation of TSB accounts

� On 8 July 2015 the acceptance level exceeded 90% and as a result Sabadell initiated the “squeeze out” process

� Sabadell expects to delist TSB on 28 July

� The TSB takeover results in €207M of negative goodwill adjustment with a positive impact in the group P&L

37

Update on the TSB 1H business & financials

� 1.3% growth QoQ in lending driven by strong entry in the mortgage intermediary market and launch of buy-to-let

� GBP1,900M of mortgage applications in 1H 2015, on track to meet full year target of GBP4,000M

� Improved market share in PCAs with total deposits up by 0.8% in the second quarter

� Share of current account gross flow at 6.7%, above current market share

� Costs negatively affected by extraordinary items related to the costs of Sabadell´s transaction

38Note: Summary of TSB results, released on 23 July. Full release available on Sabadell website.

Sabadell near term focus for TSB

� TSB is delivering on its business plan, with a commitment to growing further still as part of the Sabadell group

� The IT platform will be ready at the end of 2016 with integration expected to be completed in 4Q 2017

� The new IT platform will have SME capacity built into it, preparing TSB for a new growth opportunity within the UK SME segment

� Pre-tax synergy target of c.GBP160M per year from IT optimisation in 2018 is maintained

� GBP450M contribution by Lloyds to TSB more than offsets implementation costs of IT migration

� Focus on productivity enhancement

39

Steps since completion

� New corporate governance structure in place

� Project Management Office has been deployed in London

� IT protocol has been set up

� Joint workstreams have been kicked-off

� 100-day plan in motion

40

March 20

“100-day plan”

Today

PRA approvalOffer declared unconditional in all respects

April 17

May 8 June 30

July 8

Offer unconditional as to acceptances

Recommended cash offer announcement

OfferDocument release

May 18Satisfaction of EU Merger Regulation Condition

90% threshold achieved

December 5

For any additional information, please contact:

investorrelations@bancsabadell.com

+34 93 728 12 00

Investor Relations