Banco Sabadell2013 Results

January 23rd, 2014

Disclaimer

Banco 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 Banco 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).

Banco 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 Banco 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. Macroeconomic update and strategic positioning

2. 2013 Results

3. Commercial activity and liquidity

4. Risk and capital management

5. Managing real estate assets

6. Summary and outlook

Index

2222

1. Macroeconomicupdate and strategic positioning

3333

215

230

100

120

140

160

180

200

220

240

2001 2003 2005 2007 2009 2011 2013

The acute phase of correcting imbalances in Spain is largely over …

Private sector debt (% of GDP)Current account balance (% of GDP)

-10.0

-1.1

-12

-10

-8

-6

-4

-2

0

2

4

1998 2000 2002 2004 2006 2008 2010 2012 2014

BS forecast: 2013: 1.3%

2014: 1.7%

Investment in housing (% of GDP)

4

6

8

10

12

14

1995 1997 1999 2001 2003 2005 2007 2009 2011 sep-13

España Zona euro

Unit labour cost (2000 = 100)

100

110

120

130

140

2000 2002 2004 2006 2008 2010 2012

España Zona euro 4444Spain Euro zone Spain Euro zoneSources: Bank of Spain, ECB, AMECO and INE.

BS est.

… and recent data is confirming the improvement of the Spanish economy

Sources: INE, Bank of Spain, Ministerio de Economía and Bloomberg.

Apr-11-13Dec-13-5.9Industry employment expectations (index)

Mar-1144.6Dec-1350.8PMI manufacturing (index)

Jul-0744.3Dec-1354.2PMI services (index)

May-10-22.2Dec-1319.6Passenger automobile registrations (yoy %)

Feb-11-2.4Dec-131.2Electricity consumption (yoy %)

Jan-96-0.8Dec-1315.3Foreign tourist inflows (yoy %)

Feb-11-34.6Nov-13-6.4Cement consumption (yoy %)

Dec-11-40Dec-13-17.1Consumer confidence (index)

10.4

2.0

2.7

Last published data

Aug-11-35.8Nov-13Truck registrations (yoy %)

-11.4

-8.1

December2012

Top range since…

Industrial production (yoy %) Nov-13 Feb-11

Retail sales (yoy %) Nov-13 Mar-10

55

4,000

6,000

8,000

10,000

12,000

Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13

100

200

300

400

500

600

700

06/11 12/11 06/12 12/12 06/13 12/13

Market appetite for Spanish assets continues to grow …

Spanish ten year governmentbond spread (bp)

max.: 638bp

Spanish equity market(Ibex-35)

min.: 5,956

Credit and equity markets are aware of the improved economic outlook

Source: Bloomberg. 6666

~200bp

25

30

35

40

45

50

55

60

2007 2008 2009 2010 2011 2012 2013

Manufacturas Servicios

… and the improvement of the economy is expected to continue in 2014

-25

-20

-15

-10

-5

0

5

10

2005 2007 2009 2011 2013

Industrial production (YoY change, %)

Confidence indicators(level)

25.426.4*25.1Unemployment rate

1.11.52.4CPI

Economic forecast (in %)

2012 2013 2014e

GDP -1.6 -1.3* 1.0

Sources: Bloomberg and INE.

The market has a more positive outlook for the

Spanish economy

7777

Manufacturing Services

*BS Estimates

The restructuring of the financial system is virtually concluded …

Establishment of the FROBManage the restructuring of the sector

Jun 2009

Feb-May 2012

Royal decrees “De Guindos I & II”Provisioning requirements

Jan2014

End of financial rescue program for the Spanish banking sector

Nov 2014

European financial supervisorThe ECB takes on the role as single financial supervisor

The restructuring has materially increased the concentration andsolvency of the banking sector

Jul 2012

Signing of the MoUFinancial support from Europe of up to € 100bn

Weight of the 6 largest financial institutions in assets

44.8%57.0%

2007 2012

Evolution of the core capital of the main Spanish banks

7.0%

11.5%

2007 Q3 2013

88

Sources: Banco de España and Spanish banks’ annual accounts

88

… and the financial rescue program for Spain has come to an end

� The international rescue program for the Spanish financial sector has concluded following the positive evaluation by the troika

Sources: Bank of Spain, IMF and BoAML* Figures reported by the IMF in its November 2013 progress report about the Spanish financial sector.

Favourable liquidity position

0

150

300

450

600

750

900

2009 2010 2011 2012 2013

España Países core

6

7

8

9

10

11

2006 2007 2008 2009 2010 2011 2012 2013*

Stronger solvency levelsSpreads on bank debt, investment grade (basis points)

Tier 1 Capital ratios of Spanish banks (in percentage)

Spanish bank usage of the BCE liquidity operations (Euros in billion)

9999

Spain Core countries in the Euro zone

050

100150200250300350400

2007 2008 2009 2010 2011 2012 2013 2014

Assets

Loans1

Deposits2

Branches

Employees

2007 2010 2013 2013/07

76,776 97,099 163,441

63,165 73,058 124,615

34,717 49,374 94,497

1,225 1,428 2,2473

10,234 10,777 16,9004

X 2.1

X 2.0

X 2.7

X 1.8

X 1.6

(Euros in million)

Banco Sabadell has made a quantum leap in the last 5 years …

1. Gross loans to customers excluding repos. 2. On-balance sheet customer funds. 3. 2014 forecast. 4. 2015 forecastNote: Loan to deposit ratios is net of provisions and intermediary funding.

Core Capital

Loan to deposit

6.0% 8.2% 12.0%

197% 135% 107%

X 2.0

X 0.5

… improving liquidity and solvency ratios …

10101010

0.5%

3.0% 3.0%

2010 Obj.CREA 2013

6.0%9.0% 9.6%

2010 Obj.CREA 2013

2,1 3,1

2010 Obj.CREA 2013

… exceeding our business plan commercial targets

� Exponential growth rate in the number of customers

Number of customers

Millionsx 2.1

� Consolidating the Sabadell brand

Brand recognition “top of mind”

Catalonia Madrid

11111111

CREA plan target

Org. growth

CREA target

CREA target

Source: Brand tracking according to Time Consultants

6.5

3.12.1

Maintaining a high level of service quality

� Consolidating a high level of service quality following the integration of new businesses

7.547.21 7.32 7.20 7.24

6.90 6.89

6.956.77

6.61

6.11 6.06 6.01 6.03

2007 2008 2009 2010 2011 2012 2013

Sabadell Sector

Level of service quality (Index )

Source: STIGA, EQUOS “RCB Análisis de Calidad Objetiva en Redes Comerciales Bancarias” 12121212

4Q13 in summary

� Quarterly net interest income points towards exceeding the 2012 levels in a low interest rates and economic recovery environment. Active price management is neutralising the impact from the reduction of the ALCO bond portfolio

� Continued improvement in fee income is driven by increased commercial effort and focus on profitability, cross selling and the closing of the profitability gap between the historical Sabadell and the newly acquired franchises

� Trading income continued to perform well driven by an active A&Lmanagement

� Initial visible signs of a turning point in the stock of NPLs while we have now four consecutive quarters in decelerating problematic assets

� Additional strengthening of the coverage level of loans and real estate assets, reaching now 13.6%

� Real estate assets sold in 2013 in excess of €3bn

� Ample Core Capital at 12.0% and Core Tier 1 Basel III fully loaded at 10.1%

13131313

2. 2013 Results

14141414

2013 Results

15151515Note: 2013 includes seven months of the BMN-Penedés network, six months of Lloyds Spain and two months of Banco Gallego. Euros in million

2012 2013% var 13/12

Net Interest Income 1.868,0 1.814,7 -2,9%

Equity Method & Dividends -1,9 18,4 --Commissions 628,7 759,7 20,8%Trading Income & Forex 606,1 1.547,1 155,2%Other Operating Results -142,5 -163,1 14,4%Gross Operating Income 2.958,4 3.976,8 34,4%

Personnel Costs -996,5 -1.098,2 10,2%Administrative Costs -515,1 -587,9 14,1%Depreciations -156,9 -228,4 45,6%Pre-provisions Income 1.289,9 2.062,3 59,9%

Total Provisions & Impairments -2.540,6 -1.763,6 -30,6%Gains on sale of assets 15,4 43,9 184,9%Badwill 933,3 0,6 --Profit before taxes -302,0 343,2 --Taxes and others 383,9 -95,4 --

Attributable Net Profit 81,9 247,8 202,6%

Upward trend confirmed in net interest income

Net interest income 2013:-2.9% YoY

2012 2013

1,868.0

1.815

Net interest income 4Q13:+10.3% QoQ

1,814.7

16161616

Net interest income evolutionEuros in million

497.7451.2

407,3447,0

526,4487,3

451,2414.6

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

34% 39%

66% 61%

Dec 12 Dec 13

The cost of the stock of term deposits is falling an d approaching the level of new deposit production

Reduction in the cost of customer funds …

17171717

Contractual rates on term depositsIn percentage

Share of sight deposits out of total customer fundsIn percentage

Stock New production/renewals Sight Other term funds

Note: Contractual rates on term deposits do not include Lloyds Spain nor Banco Gallego.

3.32% 3.26% 3.35%3.58%

3.36%3.13%

2.84%

2.80%

2.50%

2.37%

1.51%1.61%

1.85%

3.06%

3.39%

2.16%

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

… and active asset price management …

18181818

Loan book spreads, new production/renewalsBasis points

Re-priced loans, quarterly evolutionEuros in million

Credits Loans

Mortgages to individuals

Note: The front book spreads are weighted averages in the quarter. Re-priced loans do not include Lloyds Spain nor Banco Gallego.

225

272 264

296

405 410 428 411 412

256

413

361 363 345371

386388

389385

376

215

329

266247

278

340

244239

254249

172151146

123130

116124

89

179

4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13

10.713

12.291

10.048

11.08511.558

10.117

8.717

11.066

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

2.21% 2.09% 2.19%

1.65%1.87%

2.07%1.85% 1.97% 2.00% 2.06% 2.11%2.12%2.00% 2.03%

1.48%

2.83%

1.70%1.36% 1.44%

1.59%

3.51%3.49%

3.94%4.02%4.05%4.16%4.28%4.22%

4.12%3.99%3.86%3.65%

3.50%3.49%3.53%3.79%

4.21%

4.93%

5.56%

3.66%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

… drives the improvement of net interest margin …

19191919

Customer loan yield and cost of customer funds In percentage

Cost of customer fundsCustomer loan yield

2.06% 2.11% 2.16%2.02%

1.93%

1.75%1.86%

1.60% 1.56% 1.61%

1.42%1.28%

1.21%1.14% 1.17%

1.59%1.62%

2.16%

1.00%1.05%

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

… with now two quarters in a recovery trend

Net interest margin ex-APS:

1.72%

20202020

Margin evolutionIn percentage

Customer spread Net interest margin

24,8 25,2 26,6 25,9 28,6 31,4 37,5

47,5 48,2 55,8 54,7 52,4 53,3 52,8

59,9 73,683,6 94,0 90,1

108,5119,58,7

26,1

53,8

105,9

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Continued improvement in commission income

188.2

133.5

155.3164.6

175.3 168.4

193.2209.8

2012 2013

628.7759.7

Commission income 2013:+20.8% YoY

Commission income 4Q13:+8.6% QoQ

21212121

Commission income evolutionEuros in million

Asset Mgmt1 ServicesLending

Commissions from fixed income issuance1 Including mutual funds commissions and pension funds and non-life insurance brokerage

182.2221.5

292.2 281.2258.4

287.7253.0261.1

1.90.35.92.0

5.8

5.8

3.51.9

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Personnel expenses are kept under control …

188.0

227.3

294.2 287.1

260.3 264.6Personnel expenses 2013:

+10.2% YoY

Personnel expenses on a like-for-like basis* 2013:

-13.2% YoY

283.7

Recurrent Non-recurrent

289.5

22222222

Personnel expenses evolutionEuros in million

* Including Banco CAM, BMN-Penedés and Lloyds Spain in 2012 and excluding non-recurrent expenses.

93.8113.1

151.9 153.1 147.1 149.2146,6138.1

0.9

1.9

0.4

6.8

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

… as well as general expenses

General expenses 2013:

+14.1% YoY

94.2

-11.4% YoY

115.1

154.0151.9

147.1138.1

146.6156.0

Recurrent Non-recurrent

23232323

General expenses evolutionEuros in million

General expenses on a like-for-like basis* 2013:

* Including Banco CAM, BMN-Penedés and Lloyds Spain in 2012 and excluding non-recurrent expenses.

47.6%48.2%46.0%46.3%

51.1%49.7%

45.7%

40.8%

Mar

.12

Jun.

12 S

ep.1

2 D

ec.1

2 M

ar.13

Jun.

13 S

ep.1

3 D

ec.1

34Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Optimising the network

1,383

10,67510,550

1,382

2,202

16,754

Banco CAM

16,413

2,204 1,898

15,596 14,957

1,889

2,382

17,253

BMN-Penedésand Lloyds

Spain

17,233

2,254 *2,418

18,077

B.Gallego

24242424

Employee and branch evolutionIn number

Cost income evolutionIn %

Branches Employees* Following the closure of 128 branches related to the integration of BMN-Penedés, which took place in October 2013.4Q13 numbers include BS Andorra and Banco GallegoNote: Cost income ratios are adjusted for non-recurrent trading income

3. Commercial activityand liquidity

25252525

3,439

15,452

10,123

5,811

2010 2011 2012 2013

14.218.7

15.6

7.0

7.9

4.1

2.0

2.4

2.3

Dec-12 Jun-13 Dec-13

Evolution of fixed income portfolio Euros in billion

Spanish government debt Other

23.529.0

21.7

2626

Continued high level of commercial gap: €10,123M

2626

Change in commercial gapEuros in million

Customer funds and loans evolution Euros in million

1 Other 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. Excludes repos. Loan to deposit ratio is adjusted for provisions and intermediary loans such as ICO loans (government subsidy loans)

21.326.6

19.7

Life insurance portfolio (Mediterráneo Vida)

Dec-12 Dec-13% Var.

YoY

Total assets 161,547 163,441 1.2%

Gross loans to customers ex repos 119,638 124,615 4.2%ALM Portfolio 23,536 21,743 -7.6%

Total liabilities 152,286 153,036 0.5%On-balance sheet customer funds 80,179 94,497 17.9%Other on-balance sheet term funds1 53,095 57,635 8.6%Sight deposits 27,085 36,862 36.1%

Capital Markets 25,326 21,167 -16.4%ECB Funding 23,650 8,800 -62.8%

Off-balance sheet funds 20,659 25,370 22.8%Mutual funds 8,585 11,019 28.4%Pension funds 3,709 4,356 17.4%Third party insurance products 7,313 8,067 10.3%

34,543 33,902

48,122

58,408

28,87427,08527,28427,44936,862

57,63557,953

47,774 53,09553,819

9,693

8,9878,585

8,5618,533

11,01910,052

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

109.2%

121.9%

131.0%

116.6%

111.0%107.3%

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Strong growth in customer funds

Acceleration in thegrowth of AuM andcurrent accounts

27272727

Evolution of customer funds and off-balance sheet funds Euros in million

Loan to deposit ratioIn percentage

Sight deposits 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. Excludes repos.

Growing the customer base …

8,900 new customers every

week

The group now has 6.5 million customers(including BMN-Penedés, Lloyds España and Banco

Gallego)

28282828

Remarkable success in customer gathering

Oct. 13 Nov. 13 Dec. 13 4Q13

Individuals 37,519 31,068 25,208 93,795

Companies 8,738 8,150 6,166 23,054

5.64%Nov. 12

Nov. 13

… and gaining market share both in individuals …

5.95%3

7.01%

Contribution BMN-Penedés, Lloyds as of June 2013 and B. Gallego as of November 2013

+137 bps (+14 bps organic growth

+118 bps (+6 bps organic growth)

2929

4.96%Jan. 13

Nov. 13

+99 bps (+98 bps organic growth)

6.51%Dec. 12

Dec. 13 7.96%3

+145 bps (+132 bps orgnaic growth)

5.13%Nov. 12

Nov. 13 6.31%

2929

Household deposits 1

Payroll accounts Transactionality 2

Household loans

1 Including term and sight deposits and repos2 Including cheques, transfers, SEPA transfers, receivables and promissory notes3 Payroll accounts and transactionality include estimated market shares for Banco Gallego.Penedés and Lloyds Spain market sharesare included in organic growth number

… as well as in companies

12.24%Dec. 12

Dec. 13 20.50%1

+826 bps

13.96%2

8.62%Nov. 12

Nov.13 10.63%

+201 bps (+147 bps organic growth)

11.42%

11.20%+111 bps (+49 bps orgnic growth)

3030

+276 bps (+236 bps orgnaic growth)

Sep. 12

Sep. 13

10.31%Nov. 12

Nov. 13

1.ICO do not include Lloyds Spain nor B.Gallego. Penedés is included in organic growth numbers.2.Transactionality includes estimated market share for Banco Gallego.Penedés and Lloyds Spain market shares are included in organic

growth number3030

Corporate credit

Sight deposits companies Volume at BS card PoS

ICO loans (publicly subsidised)

Sabadell continues to provide credit to SMEs and corp orates

Contribution BMN-Penedés, Lloyds as of June 2013 and B. Gallego as of November 2013

Closing the income gap with the newly integrated businesses and Sabadell

BS B.CAM

2.37

1.75

-0.62

0.88

0.66

-0.22

Gap

Var:

Var:

31

20

-11

Gap

Var:

Var:

2,203

1,852

-351

5.77

5.84

5.18

4.89Jan-13

Dec-13

7.73

7.72

5.97

5.36Jan-13

Dec-13

251

286

266

220Dec-12

Dec-13

4,083

4,338

2,231

2,135Dec-12

Dec-13

31313131

Products per customer * Customer income generation (Euros)

* Average number of contracts per principal account holder

Ret

ail b

anki

ngS

ME

s

Ret

ail b

anki

ngS

ME

s

Maintaining a balanced funding structure …

33333232

Group funding structure Group wholesale funding brea kdown

Deposits 69.3%

ICO financing 5.0%

Repos 4.7%

Retail issues 1.2%

Wholesale funding 19.7%

Prefs 0.1%

Senior debt 3.5%

Covered bonds 62.0%

Prefs + Subordinated

3.6%

ECP 6.6%

Securitisation 16.4%

GGB 7.9%

4,397

3,060

3,850

3,069

1,681

886

3,053

0

1,000

2,000

3,000

4,000

5,000

2014 2015 2016 2017 2018 2019 >2020

23,650

20,500

18,00017,000

8,800

Dec 2012 Mar 2013 Jun 2013 Sep 2013 Dec 2013

… and efficiently managing liquidity

34343333

Group wholesale funding maturities Euros in million

ECB liquidity position Euros in million

Banco Sabadell has no structural funding through the ECB

Maturity by product type Euros in million

2014 2015 2016 2017 2018 2019 >2020 Outst. AmountCovered Bonds (CH) 3.322 3.060 2.870 1.937 1.563 886 2.512 16.149GGB 1.005 0 0 1.066 0 0 0 2.071Senior Debt 0 0 681 0 100 0 25 806Preferred Shares and Subordinated Debt 0 0 299 66 0 0 498 864Other mid- and long-term financial instruments 70 0 0 0 18 0 18 105Total 4.397 3.060 3.850 3.069 1.681 886 3.053 19.995

4. Risk and capital management

35353434

Strong core capital level

9.6%

11.4%12.0%

10.4%

Dec. 12 Jun.13 Sep. 13 Dec. 13

Core Tier 1 Basel III fully loaded at

10.1%

36363535

Core capital evolutionIn %

Increased coverage levels and stabilisation of problematic assets …

NPLs and RE assets as of Dec 2013 Sabadell ex-APS. Euros in million

373736363636

Total NPLs ex-APS 16,021Of which:Ex-APS constant perimeter no sin reclasifications 11,079New perimeter 2,309Reclasified 2,632

Re assets ex-APS 6,939

Total problematic assets ex-APS, constant perimeter 18,018

Total problematic assets ex-APS 22,994

Coverage levels

Global coverage of total loans en RE assets

Existing coverage of NPLs, excluding reclassified loans

Existing coverage of reclassified loans

NPL ratios ex-APS

Including reclassified loans

Excluding reclassified loans

Stock of NPLs decreases by €64M

Fourth consecutive quarter showing a deceleration i n problematic assets

37373636

13.6%(3Q13: 13.3%)

50.1%

25%

13.63%

11.13%

4Q12 1Q13 2Q13 3Q13 4Q13

Ordinary net entries 1,094 388 760 365 -12Change in RE assets 234 394 1 218 400Net entries + Change in RE assets 1,328 782 761 583 388

Write-offs 387 247 305 105 51

Re assets and NPL quarterly change 940 535 456 478 337

4Q12 1Q13 2Q13 3Q13 4Q13Total NPLs ex-APS 10,287 10,428 10,883 11,143 11,079

NPL change ex-APS 141 455 260 -64

Re assets ex-APS 5,926 6,320 6,321 6,539 6,939

Total NPLs and re assets ex-APS 16,213 16,748 17,204 17 ,682 18,018

10,28710,428

10,88311,143 11,079

4Q12 1Q13 2Q13 3Q13 4Q13

…. and the first signs of a turning point in the stock of NPLs…

Evolution like-for-like of NPLs and RE assets, exclu ding reclassified loansSabadell ex-APS. Euros in million

3737

The stock of NPLs was reduced by 64 million euros in the fourth quarter

Evolution of NPLsex-APS

37373737

Perimeter change and reclassiffied

as NPLs

Reclassiffied 2003/61/EC

NPL Stock Credit Q3 Q4

Real Estate development and/or construction purposes 40.72% 17.29% 0.00% 4.97% 62.98% -0.44% 5.41% -0.25% -0.19%

Construction purposes non-related to real estate dev. 5.92% 2.38% 0.00% -0.04% 8.26% -0.66% 0.62% -0.55% -0.11%

Large corporates 5.84% 1.60% -3.05% 1.66% 6.05% 1.40% 0.26% 1.78% -0.38%

SME and small retailers and self-employed 9.12% 3.38% 1.21% -0.38% 13.33% -0.49% 0.11% -0.19% -0.30%

Individuals with 1st mortgage guarantee assets 8.30% 1.33% 0.00% 0.23% 9.86% 0.15% 0.08% -0.14% 0.29%

NPL ratio 10.17% 3.04% 0.00% 0.42% 13.63% 0.16% 0.26% 0.22% -0.06%

Proforma like for like basis

Q2 13

Change Q4 vs Q2 per:Change per NPL

stock NPL rate

comparable Q4 vs Q2

Group NPLQ4 13

Change Q4 vs Q2 per:

… reflected in the NPL ratios

Note: NPL ratio is calculated including contingent risk. 383838383838

Most segments show a sequential decline in the NPL ratio on a like-for-like basis

Evolution of NPL ratios by segment, ex-APSIn percentage

4Q13 BS ex-APS APS Total

Real estate assets 39.6% 49.7% 44.0%Real estate development loans 36.4% 45.9% 40.6%Total real estate exposure 37.8% 47.6% 42.1%

Construction 9.7% 28.7% 10.7%Large Corporates 5.1% 40.8% 6.7%SME and small retailers and self-employed 7.5% 18.8% 8.6%Individuals 4.3% 10.8% 4.6%Rest of loan book 5.3% 16.2% 5.9%

Total 9.8% 37.3% 13.6%

Coverage

Maintaining high coverage levels of credit and real estate exposure

13.6% coverage of total loans and real estate assets

9.8% coverage of total loans and real estate assets, ex-APS393939393939

Coverage by loan segment and real estateSplit between asset protection scheme and rest

5. Managing real estate assets

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Beating 2013 targets …

13,77716,000

18,501

2012 2013 2013 salestarget

2,234

3,120

2,600

2012 2013 2013 salestarget

+40% +34%

� Banco Sabadell beats its own sales target for 2013

� Selling at a higher average price per unit41414141

Sales evolution

Number of unitsEuros in million

Banco Sabadell

6,903

13,777

18,501

2011 2012 2013

x2,0

+34%356,666 370,328

299,825261,406

2011 2012 2012 2013

-13%

+4%

January - November

42424242

… and overall market trends

Number of transactionsUnits

Market

Source: Consejo General del NotariadoNote: Market data refers to last available published numbers from January to November

� Commercial efficiency� Improvement in sales conversion rate� Increase in brand recognition� New selling channels

Taking advantage of the demand drivers

Banco Sabadell

• Launching international sales channels

– Selling agencies in United Kingdom and Russia

– Web page in Russian

• 1,872 units sold to foreign buyers

(+145% vs 2012)

25,458

10,062

13,23314,041

24,579

17,651 18,57815,452

2007 2008 2009 2010 2011 2012 1S12 1S13

Number of transactions by foreign buyers

� Increasing importance of foreign buyers

43434343

Market

Source: Consejo General del Notariado

6. Summary and outlook

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Ready to implement the new business plan …

The main target of the new business plan is profita bility: extract value from the customer base, the achieved size and the developed skills

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• Operational streamline • Organic and inorganicgrowth

• Extracting value from the client base

‘10 Business Plan2014 - 2016

2006 2010 2013

COMMERCIAL TRANSFORMATION

OPERATIONAL TRANSFORMATION

2016

167100

286

2010 2011 2012 2013

Customers

Branches

Employees

128

100

2013 2014 2015 2016e

Customer spread

Customers

2010 = 100 2013 = 100

100

2006 2007 2008 2009 2010

Costs

GrossOperating Income

2006 = 100

… after CREA

� Multiplying the number of customers by three

� Increasing our market shares

� Operational streamlining

Following the execution of the last strategic business plan, Banco Sabadell has completed a commercial transformation

Banco Sabadell is ready to take advantage of the improvement of the Spanish economy:

2013 results take the first step for the execution of the new business plan

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New business plan 2014 - 2016

TTTTransformation

ProfitabilityProfitabilityProfitabilityProfitabilityProfitabilityProfitabilityProfitabilityProfitability

• CommercialCommercialCommercialCommercial transformation

• Production model Production model Production model Production model transformation

• Balance sheet Balance sheet Balance sheet Balance sheet transformation

InternationalisationInternationalisationInternationalisationInternationalisation• Setting the grounds Setting the grounds Setting the grounds Setting the grounds for the

internationalisation of Banco Sabadell

(structure, teams, etc.)

• Entering new marketsEntering new marketsEntering new marketsEntering new markets

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Financial targets of the new business strategic plan

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� The new business plan of Banco Sabadell takes advantage of the bank potential, with coverage above the sector, one of the best capital ratios and strongest balance sheet

Medium term financial targets

Cost income ratio 40%Loan-to-deposit ratio 100%ROE Double-digitCore Tier I, Basel III >10%

An achievable plan even with a moderate improvement of the Spanish economy

Presentation of the new strategic business plan

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Banco Sabadell Investor’s Day

11 February 2014London

INVITATION

For more information and to register please send an email to:Investorrelations@bancsabadell.com

The bank of the best companies. And yours