Banco Sabadell1Q14 Results

April 24th, 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.

3

1. Quarterly highlights

2. 1Q14 Results

3. Commercial activity and liquidity

4. Risk and capital management

5. Managing real estate assets

Index

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4

1. Quarterly highlights

333333

5

Quarterly highlights

� Quarterly sequential growth in net interest income yet again with the main driver being the continued reduction in the cost of customer funds

� Extraordinary trading income driven by proactive asset and liability management

� Non recurrent results have been booked as extraordinary provisions, increasing coverage levels and accelerating the reduction of the future cost of risk

� Strengthening of the coverage level of loans and real estate assets, reaching 14.0% on a group level and 10.1% excluding the Asset Protection Scheme

� Second consecutive quarter of reduction of the stock of NPLs. Total NPAs are also lower and the NPL ratio declines for the first time since the economic downturn started

� Continued increase in real estate sales, generating lower losses

� The technological integration of Gallego and Lloyds Spain has been completed and group costs are declining on a like-for-like basis

444444

6

2. 1Q14 Results

555555

1Q14 results

Note: 2014 includes BMN-Penedés network, Lloyds Spain and Banco GallegoEuros in million 7666666

Mar. 13 Mar. 14% var 14/13

Net Interest Income 451.2 530.0 17.5%

Equity Method & Dividends -6.3 0.0 ---Commissions 168.4 201.0 19.3%Trading Income & Forex 292.8 946.7 223.3%Other Operating Results -26.3 -29.7 12.8%Gross Operating Income 879.8 1,648.0 87.3%

Personnel Costs -260.3 -298.8 14.8%Administrative Costs -147.1 -151.9 3.2%Depreciations -50.4 -68.0 34.9%Pre-provisions Income 422.0 1,129.4 167.6%

Total Provisions & Impairments -324.9 -1,096.5 237.5%Gains on sale of assets -2.5 69.9 ---Profit before taxes 94.6 102.8 8.8%Taxes and others -43.4 -21.7 -50.1%

Attributable Net Profit 51.1 81.2 58.8%

530.0

451.2414.6

451.2497.7

1Q13 2Q13 3Q13 4Q13 1Q14

Another quarter of sequential growth in net interest income …

Net interest income 1Q14:+17.5% YoY

8

Net interest income 1Q14, like-for-like*:+10.4% YoY

* Excluding BMN-Penedés network, Lloyds Spain and Banco Gallego in 2014 777777

Net interest income evolutionEuros in million

3.94%3.66%

3.51% 3.50%

2.19% 2.07%1.87%

1.65%1.44%

3.49%

1Q13 2Q13 3Q13 4Q13 1Q14

1.75%

1.59%

1.86%

2.06%

1.14%1.00% 1.05%

1.17%1.29%

1.62%

1Q13 2Q13 3Q13 4Q13 1Q14

… with strong uptick in the customer spread …

Interest margins improving year on year

988Net interest margin ex-APS: 1.86%

8888

Margin evolutionIn percentage

Customer spread Net interest margin

Customer loan yield and cost of customer funds In percentage

Cost of customer fundsCustomer loan yield

10

3.32% 3.26% 3.35%3.58%

3.36%3.13%

2.84%

2.16%2.80%

2.50%

2.37%

1.29%1.51%

1.61%1.85%

3.06%

3.39%

2.16%

Mar-12 Sep-12 Mar-13 Sep-13 Mar-14

… driven by further reduction of term deposit costs

1010101099

Contractual rates on term depositsIn percentage

Share of sight deposits out of total customer fundsIn percentage

Stock New production/renewals Sight Other term funds

35% 39%

65% 61%

Mar 13 Mar 14

25.9 28.6 31.4 37.5 39.7

54.7 52.4 53.8 53.3 52.8

94.0 90.1105.9 108.5

119.5 107.9

26.6

53.4

4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Continued improvement in commission income

188.2

168.4

193.2209.8

Commission income 1Q14+19.3% YoY

201.0

11

Commission income on a like-for-like basis* 1Q14:+9.5% YoY

* Excluding BMN-Penedés network, Lloyds Spain and Banco Gallego in 2014 12121212

175.3

1010

Asset Mgmt1 ServicesLending

1 Including mutual funds commissions and pension funds and non-life insurance brokerage

Commission income evolutionEuros in million

12

258.4 261.1283.5 287.7 292.8

6.01.90.23.51.9

1Q13 2Q13 3Q13 4Q13 1Q14

Personnel expenses have been reduced on a like-for-like basis …

* Including BMN-Penedés network, Lloyds Spain and Banco Gallego in 2013 and excluding non-recurrent expenses.

260.3 264.6Personnel expenses 1Q14:

+14.8% YoY

Personnel expenses on a like-for-like basis* 1Q14:

-2.4% YoY

283.7 289.5 298.8

131313131111

Personnel expenses evolutionEuros in million

Recurrent Non-recurrent

13

147.1 138.1 146.6 149.2 148.1

3.86.8

1Q13 2Q13 3Q13 4Q13 1Q14

… and so have general expenses

General expenses 1Q14:

+3.2% YoY

General expenses in a like-for-like basis* 1Q14:

-11.6% YoY

147.1138.1

146.6

156.0 151.9

141414141212

General expenses evolutionEuros in million

Recurrent Non-recurrent

* Including BMN-Penedés network, Lloyds Spain and Banco Gallego in 2013 and excluding non-recurrent expenses.

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56.3%59.6%61.0%60.0%59.4%

Mar.13 Jun.13 Sep.13 Dec.13 Mar.141Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Optimising the network and improving the cost to income ratio

1,383

10,550

2,202

16,754

Banco CAM

16,413

2,204 1,898

15,59614,957

1,889

2,382

17,253

BMN-Penedésand Lloyds

Spain

* Adjusting operating income for non-recurrent trading income. Same criteria applies for every quarter

17,233

2,2542,418

18,077

B.Gallego

2,343

17,924

151515151313

Employee and branch evolutionIn number

Cost income evolution*In %

Branches Employees

15

3. Commercial activity and liquidity

161616161414

16

Customer funds and loans evolutionEuros in million

Strong balance sheet and growing in funds and insurance

1 Other on-balance sheet term funds include term deposits and other funds placed in the retail network. Excludes repos. 171717171515

Mar-13 Dec-13 Mar-14% Var.

YoY% Var.

YoY

Total assets 161,430 163,441 161,094 -0.2% -1.4%Of which:

Gross loans to customers ex repos 117,677 124,615 123,510 5.0% -0.9%ALCO Portfolio 27,615 21,743 20,624 -25.3% -5.1%

Total liabilities 152,211 153,036 150,529 -1.1% -1.6%Of which:

On-balance sheet customer funds 82,692 94,497 94,690 14.5% 0.2%Other on-balance sheet term funds1

53,819 57,635 57,608 7.0% 0.0%Sight deposits 28,874 36,862 37,082 28.4% 0.6%

Capital Markets 24,167 21,167 19,778 -18.2% -6.6%ECB Funding 20,500 8,800 5,500 -73.2% -37.5%

Off-balance sheet funds 21,173 25,370 26,866 26.9% 5.9%Of which:

Mutual funds 8,987 11,019 12,318 37.1% 11.8%Pension funds 3,731 4,356 4,314 15.6% -1.0%Third party insurance products 7,270 8,067 7,973 9.7% -1.2%

17

5,476 5,9176,6965,9176,215

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

1Q13 2Q13 3Q13 4Q13 1Q14

2,851 3,2063,1842,462

3,660

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

4,500.0

5,000.0

1Q13 2Q13 3Q13 4Q13 1Q14

206302305

226241

0.0

100.0

200.0

300.0

400.0

1Q13 2Q13 3Q13 4Q13 1Q14

203264255

187241

0.0

100.0

200.0

300.0

400.0

1Q13 2Q13 3Q13 4Q13 1Q14

171718181616

New lending production shows positive signs

New production

Retail mortgages Euros in million

Household loans Euros in million

Working capital SMEs and corporatesEuros in million

SME and corporateloansEuros in million

+ 47% + 30%

+ 12%+ 8%

18

116.6%

111.0%109.2% 107.3%

104.6%

131.0%

121.9%

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

33,902 36,862

47,774

57,953

34,54328,87427,08527,284

37,082

57,60857,635

53,095 53,819

58,408

10,0529,693

8,9878,5858,561

12,31811,019

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

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. 181819191717

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

Increasing customer funds,with strong growth in AuM

Growth in Mutual Funds and current

accounts continues

19

14.218.7

15.610.8

7.0

7.9

7.74.1

2.12.3

2.4

2.0

Dec-12 Jun-13 Dec-13 Mar-14

0%

5%

10%

15%

20%

2001 2004 2007 2010 2013

0%

1%

2%

3%

4%

5%

Evolution of fixed income portfolioEuros in billion

Spanish government debt Other

Life insurance portfolio (Mediterráneo Vida)

21.226.6

19.7

Fixed income portfolio/assets vsEuribor12M In percentage

18.5

Fixed income portfolio / BS Assets Euribor 12 months (right axis)

1 Percentage of fixed income portfolio/system assets: source Bank of Spain. Last available data as of August 2013

Fixed income portfolio / System Assets1

191920201818

Fixed income portfolio management

Fixed income portfolio has been reduced since June 2 013

Currently, the size of the ALCO portfolio reflects its f unction as a structural interest rate macro hedge

20

Senior debt 3.5%

Covered bonds 62.0%

Prefs + Subordinated

3.6%

ECP 6.6%

Securitisation 16.4%

GGB 7.9%

Deposits 69.4%

ICO financing 5.0%

Repos 4.7%

Retail issues 1.2%

Wholesale funding 19.7%

Maintaining a balanced funding structure …

Group funding structure

202021211919

Group wholesale funding breakdown

21

18,000

8,800

5,500

23,650

Dec 2012 Jun 2013 Dec 2013 Mar 2014

… and efficiently managing liquidity

212122222020

425765

2,410

3,060

3,848

3,069

1,679

903

3,053

0

1,000

2,000

3,000

4,000

5,000

2Q14 3Q14 4Q14 2015 2016 2017 2018 2019 >2020

2Q14 3Q14 4Q14 2015 2016 2017 2018 2019 >2020 Outst. AmountCovered Bonds (CH) 425 765 1,335 3,060 2,871 1,937 1,561 886 2,512 15,352GGB 0 0 1,005 0 0 1,066 0 0 0 2,071Senior Debt 0 0 0 0 678 0 100 17 25 820Preferred Shares and Subordinated Debt 0 0 0 0 299 66 0 0 498 864Other mid- and long-term financial instruments 0 0 70 0 0 0 18 0 18 105Total 425 765 2,410 3,060 3,848 3,069 1,679 903 3,053 19,211

Group wholesale funding maturities Euros in million

ECB liquidity position Euros in million

Maturity by product type Euros in million

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4. Risk and capital management

222223232121

23

10.3%11.6%12.0%

Core Capital 2013 Common Equity Tier 1 proforma2015 (phased in)

Core Capital "fully loaded" 1Q14

Strong capital levels

Capital ratiosIn percentage

* Including €860M of mandatory convertible bonds as of December 2013, of which the maturity calendar is: €17.6M in 2014, €755.6M in 2015, €68.6M in 2016 and €17.6M in 2017 232324242222

*

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4Q13 1Q14

Total NPLs ex-APS 16,021 15,788Of which:Ex-APS constant perimeter no sin reclasifications 11,079 10,731New perimeter 2,309 2,309Reclasified 2,632 2,747

Real estate assets ex-APS 6,973 7,037

Total problematic assets ex-APS 22,994 22,825

Confirming the turning point in the NPLs …

NPLs and RE assetsEuros in million

The stock of NPLs ex-APS was reduced by €233M

NPL ratio declines from 13.63% to 13.57%

25252626

Total problematic assets ex-APS decreasing by €169M

2323

Coverage levelsIn percentage

NPLs ratios ex-APSin percentage

4Q13 1Q14Global coverage of total loans and RE assets 13.6% 14.0%

Existing coverage of NPLs, excluding reclassified loans 50.1% 51.4%

Existing coverage of reclassified loans 25% 25%

4Q13 1Q14

Including reclassified loans 13.63% 13.57%

Excluding reclassified loans 11.13% 11.04%

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1Q13 2Q13 3Q13 4Q13 1Q14

Ordinary net entries 388 760 365 -12 -83Change in RE assets 394 1 218 400 64Net entries + Change in RE assets 782 761 583 388 -19

Write-offs 247 305 105 51 265

Re assets and NPL quarterly change 535 456 478 337 -284

… with like-for-like numbers showing a sequential decrease for the last two quarters

242425252424

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

26

1Q13 2Q13 3Q13 4Q13 1Q14

Real Estate development and/or construction purposes38.38% 42.99% 55.73% 62.98% 63.12%

Construction purposes non-related to real estate dev.5.96% 7.94% 9.84% 8.26% 8.32%

Large corporates 7.40% 7.48% 8.91% 6.05% 6.02%

SME and small retailers and self-employed 8.98% 9.81% 10.93% 13.33% 13.31%

Individuals with 1st mortgage guarantee assets8.07% 8.17% 8.78% 9.86% 9.84%

NPL ratio 9.69% 10.62% 12.61% 13.63% 13.57%

NPL ratios already improving

NPL ratio evolution, ex-APS

13.63%13.57%

+0.14% -0.20%

4Q13 1Q14

Impact from decreasing

stock of NPLs

Impact from

reduction in loans

26262727

The decreasing stock of NPLs explains 20bps of decline in the NPL ratio

2525

Evolution of NPL ratios by segment, ex-APSIn percentage

Note: NPL ratio is calculated including contingent risk.

27

Extraordinary provisions booked this quarter …

€811M of non recurrent results have been booked as extraordinary provisions, increasing

coverage levels and and accelerating the reduction of the cost of risk going forward

Provisions booked in 1Q14 Euros in million

303031312626

1Q14Ordinary provisions -286Credit and other extraordinary provisions -571RE assets extraordinay provisions -240Total provisions and impairments -1,097

28

1Q14 BS ex-APS APS Total

Real estate assets 41.2% 50.4% 45.2%Real estate development loans 35.0% 45.8% 39.9%Total real estate exposure 37.8% 47.8% 42.3%

Construction 12.2% 32.2% 13.1%Large Corporates 6.6% 45.4% 8.4%SME and small retailers and self-employed 7.7% 19.2% 8.8%Individuals 4.3% 11.8% 4.7%Rest of loan book 5.7% 18.9% 6.5%

Total 10.1% 38.1% 14.0%

… strengthen the coverage levels

A level of global coverage higher than peers

27272828

14.0%global coverage

of total loans and RE assets

10.1% global coverage

of total loans and RE assets

ex-APS

2727

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

29

5. Managing real estate assets

313132322828

30

Commercialisation and servicing

Developing Solviais more valuable to BS

SOLVIA

Real Estate Business Asset Management

Transformation (land transformation and

development capabilities)

Institutional SalesReal estate as an

investment product

33333434

Since 2008, Solvia has become one of the main real estate companies in Spain, with a

benchmark sales platform2929

31

Commercial activity continues to improve

Sales evolution

1,992

2,882

3,271

1Q 12 1Q 13 1Q 14

657

463387

1Q 12 1Q 13 1Q 14

+42%

+13%

Increase in sales assuming lower losses than in 1Q1 3

Euros in million (€m) Number of units

(BS + B.CAM) (BS + B.CAM)

+20%+45%

343435353030

32

Creating value in real estate assets

Developing distribution centre� Lease agreement with DHL for the

development of a distribution centre in Guadalajara in a 82,000 m2 land plot

� Logistic warehouse surface: 52,000 m 2

� Existing warehouse refurbishment: 24,000 m2

� New warehouse construction : 28,000 m 2

Vodafone headquarters� Sale of the complex in Madrid Parque

Empresarial Avenida América 115 (Vodafone southern Europe headquarters) to London & Regional Properties

� Office complex: 50,600 m2

� Sale price: €117M

353536363131

33

Successfully developing promotions

Playa San Juan� 80 apartments� Prices between €120,000 - €190,000

� Foreign and domestic demand

� Occupation expected in 1H2014

Paracuellos de Jarama (Madrid)

� Increasing the price in 16 houses during the sale

� Prices between €200,000 - €250,000

� Occupation expected in summer 2014

100% sold under construction

In one and a half month 100% was sold

In 2013 we have started to sell properties under co nstruction benefiting from the recovery of the demand 363637373232

34

“The victory is not in the winning, it is in the fighting along the way”

Rafael Nadal