Banco Mare Nostrum
A profitable reality
June 2015
Contact & Disclaimer
BMN
Investor Relations Area
Paseo de Recoletos, 17 – 4th floor
28004 Madrid (SPAIN)
Santiago Barroso
Head of Investor Relations
[email protected]
+34 91 308 94 47
Karl W. Klobuznik
Investor Relations
[email protected]
+34 91 736 13 44
DISCLAIMER
Banco Mare Nostrum, S.A. (“BMN”) cautions that this presentation and any materials discussed verbally and distributed in connection with this presentation may contain forward-looking statements, beliefs or opinions, including statements with respect to
BMN’s business, financial condition and results of operations. These statements, which contain words such as “anticipate”, “believe”, “intend”, “expect”, “forecast” and words of similar meaning, represent BMN’s judgment and expectations concerning the
development of its business and involve a number of risks, uncertainties and other important factors because they relate to future events. As a result, actual developments and results may differ materially from BMN’s expectations. Statements as to historical
performance or financial accretion are not intended to mean that past performance or earnings for any period may be relied on as a guide to future performance. Nothing in this presentation should be construed as a profit forecast or taken as a guarantee of
future performance or results. Forward-looking statements speak only as at the date of this presentation and BMN expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statement in this presentation.
You are cautioned not to place any undue reliance on such forward-looking statements.
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BMN, its advisors and agents gives no advice and makes no recommendation to buy, sell or otherwise deal in shares, or any other securities or investment whatsoever. Any investor or prospective investor acquiring securities at any time must do so only on the
basis of his or her own judgment and investigation into the nature and suitability of the securities for his or her purposes, having taken all professional or other advice necessary or appropriate in the circumstances and not in reliance on the information
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Agenda
1. BMN’s Business Model
2. Restructuring Plan already completed
3. Positioned for Growth
Key BMN Highlights

A reference retail and SMEs banking group with strong market share in some of the most dense and dynamic provinces in
Spain, which are poised to be early beneficiaries of the Spanish economic recovery
1


5




Positioned for Growth

Deleveraging completed: LTD ratio of 99%
in 1Q15 vs. 113.3% in Dec. 2012 (1)
Dominant position in regions that are
expected to grow above average
Recurrent revenues: expanding B/S on
existing SME’s and individuals
Room for growing recurring revenues as a
result of the focus on high value-added
products (insurance, pension plans) for
individuals and SMEs
4




Leading Regional Franchise
Leading retail bank in highly dynamic
regions: Murcia, Granada and Balearic
Islands
Dominant deposits market shares
(ranging from 24% to 35%)
Strong regional brands: Not impacted by
retail burden sharing or operating
restructuring
Low risk assets and solid
capital position
B/S: 62% low risk mortgages and 27% on
SME’s (o/w 61% collateralized)
CET1 Fully Loaded of 10.3% as of Mar
2015, +0.3 pp since Dec. 2014. CET1 FL
11.8% including AFS capital gains.
Limited AQR impact (43bps) confirms the
quality and coverage of the loan book
AQR/Stress Test passed: 8.1% under
Adverse scenario; 7.6% on Fully Loaded basis
2


3


Strong Profitability Potential
Resilient NII and normalized cost of risk
should increase ROE despite low interest
rate environment.
Recurrent income generation capabilities:
0.72% recurrent profit over ATA.
Leading Efficiency Post
Restructuring
Restructuring process completed in 2014
(# branches, # FTE and opex reduced by
>50%).
BMN is still one of the most efficient entities in
Spain, with 0.88% operating costs over ATA
(1) Excluding SAREB and Sabadell transactions
4
1
Leading Regional Franchise in the South East Mediterranean retail market
Retail branch network – Mar 2015
BMN key figures – 1Q15
# customers
2.1m
17
5
182
1
# branches
25
784
17
62
# FTEs
4,183
8
2
58
183
7
19
180
Assets (€bn)
44.7
3
13
1
1
o/w loans (€bn)
23.4
Pre-Provision Profit – ex NTI
(%)
0.72
Cost to income ratio (%)
45.0
Total: 784 branches
Market shares – Dec 2014 - % (1)
34,9%
33,0%
27,8%
23,8%
18,1%
Operating cost over average
assets (%)
20,0%
20,0%
19,6%
16,1%
0.88
Murcia
Granada
Depósitos
Crédito
Balearic I.
Oficinas
Source: Management Information.
(1) Figures excluding non residents & public sector.
5
2

Strong and Recurrent Profitability: Despite the improvement achieved, there is still
room for improvement in NII via cost of term deposits
Significant room for improvement in the cost of deposits given the higher back book term deposits costs and its maturity
profile
Term deposits costs evolution
Customer spread evolution
3.20
1.87
3.18
2.06
3.03
2.13
2.94
1.9%
1.7%
2.20
2.19
1.5%
1.4%
1.3%
1.2%
1.2%
1.32
Mar-14
3.13
1.12
Jun-14
Customer funds
1.00
1.0%
0.84
Sep-14
0.74
Dec-14
Loans yield
Mar-15
0.8%
Mar-14
Jun-14
Customer spread
Sep-14
Back book
Customer margin over NII (%)
Dec-14
0.6%
Mar-15
New production
Term deposits maturity profile
2.12%
77%
75%
86%
92%
93%
1.01%
0.91%
1.05%
1.09%
4,974
3,092
1,469
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1,431
1,652
1Q16
>1YR
1Q 2015
Customer margin calculated as customer spread over profitable
loans, adjusting the excess or deficit of funding (loans vs deposits)
with the average wholesale funding cost
2Q15
3Q15
4Q15
Volume of maturities Mn€
Cost of maturities ( % )
NII and ATAs refer to Net Interest Income and
Average Total Assets, respectively
Source: Management Information
(1)
6
3

Leading Efficiency Post Restructuring: One of the most efficient entities
Leading Efficiency Post Restructuring: Branches and employee restructuring has transformed BMN into one of the most
efficient entities
Evolution of BMN’s commercial network
Costs over ATA’s & C/I ratio net of results from
financial operations(1)
(Mar 2015; %)
1,640
52%
1,342
−
40
-462
795
784
45
Cost to income ratio ex - NTI
(%)
818
50
-62
Peer 1
Peer 2
Peer 4
55
Dec-10
Dec-12
Sale of
Catalonia
and Aragon
Network
Other
Dec-13
Dec-14
Mar-15
Peer 6
Peer 7
60
65
Peer 5
Peer 8
Peer 3
Peer 10
70
Evolution of BMN’s workforce (FTE)
75
8,643
52%
7,040
80
4,701
(2,019)
4,171
4,183
(320)

90
1,60
1.6

Dec-10
Dec-12
Peer 11
85
Sale of
Catalonia
and Aragon
network
Other
Dec-13
Dec-14
1,40
1.4
1,20
1.2
1,00
1.0
0,80
0.8
0,60
0.6
Operating cost over ATA (%)
−
Mar-15
Source: BMN’s Management Information and public
reported consolidated figures.
(1) Cost to income ratio calculated as general
expenses and depreciation over gross margin
net of Net Trading Income
Peers (sorted alphabetically) Abanca, Banco
Popular, Banco Sabadell, Bankia, Bankinter,
Caixabank, Ibercaja Banco, Kutxabank, Liberbank,
Unicaja Banco.
7
4

Clean & Solid Bank: Very low RE exposure and reducing NPL balance
BMN has one of the lowest Real Estate exposures in Spain while improving the balance of NPL loans
% Gross real estate developers loans
over total gross exposure.(1)
€Mn
Peer 6
16.7%
Peer 4
11.6%
Peer 5
400
11.4%
Peer 8
8.8%
Peer 7
8.8%
Peer 3
7.1%
Peer 10
233
200
0
-4
4.8%
BMN
-106
3.4%
-93
-146
-200
Peer 11
2.0%
Peer 2
2.0%
Peer 1
Net NPL entries (2) evolution
1.5%
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
-400
Source: BMN’s Management Information and public reported consolidated
accounts
a)
Spanish domestic banks gross real estate exposure. BMN figures as of Mar
2015. Peers latest figures available (Dec 2014)
b)
Gross NPLs entries net of recoveries and write-offs
Peers (sorted alphabetically): Abanca, Banco Popular, Banco Sabadell, Bankia, Bankinter, Caixabank,
Ibercaja Banco, Kutxabank, Liberbank, Unicaja Banco.
8
4

Clean & Solid Bank: Focused on individuals and SME’s
Credit portfolio is currently focused on SME’s and Residential Mortgages
Loan Portfolio – 1Q15
(gross exposure)
Real Estate Breakdown (€mn)
Others
3%
Total Exposure:
€24.5bn
136
Land
27%
0.604
0.130
0.848
182
Buildings
SMEs & Corporates Loan Portfolio Breakdown
SME's &
Corporates
secured
39%
530
6,569
61%
SME's &
Corporates
unsecured
Individuals Loan Portfolio Breakdown
6%
67%
Individuals
mortgages
16,340
94%
Individuals
unsecured
X%
Percentage of total exposures
Individuals
SMEs & corporates
Real estate
Other construction
Public sector
Source: Management Information.
9
4

Clean & Solid Bank: Comfortable liquidity position
Sound liquidity position, with commercial activity nearly fully funded with retail deposits
Balance sheet breakdown (€mn)
(as of Mar 2015)
44,730
44,730
Wholesale Assets
13,989
14,384
Retained
Covered Bonds
1,970
1,970
Wholesale Funding
Retained Covered bonds
LTD*
99.4% as of Mar2015
Net Loans
Other assets
23,403
5,368
Assets
22,820
Customer Deposits
ICO
Other liabilities
Equity
Liabilities and Equity
711
2,330
2,514
Source: BMN management information.
* LTD = (Loans to customers – ICO loans) /
Customer Deposits
10
4

Clean & Solid Bank: Successfully passing the Comprehensive Assessment process
Limited Asset Quality Review (AQR) impact (0.4%) despite lower coverage ratio (38%) than peers
1,362
€mn and %
-300
7.6% on Fully
Loaded basis
-1,191
-0.4%
9.4%
2,018
CET1 2013
-0.9%
9.0%
-91
AQR
8.1%
1,927
CET1 2013 Adj.
-73
PPP
Central Bank & Banking book Trading book
Instit. Loses
loses
loses
AQR impact by class
2
6
-107
Sovereign
59
0
-15
1,662
Taxes
Dividends
Other*
CET1 2016
AQR - ST
AQR: 43 bps, most on collective provisions
CET1 2016 Adv: 8.1%
CET1 2016 Adv. Fully Loaded: 7.6%
35
1Q15
AQR bps on CFR
AQR bps on Collective
BIS III CET1 Phased in of 10.2%
AQR bps on CVA
AQR bps rest
BIS III CET1 Fully Loaded 10.3%
Source: European Banking Authority (EBA)
11
4
Clean & Solid Bank: Solid capital position
BIS III Phased In – 1Q15
(%)
BIS III Fully Loaded – 1Q15
(%)
+0.3 p.p.
10.2
10.2
11.5
10.0
11.8
(1)
(1)
10.3
8.9
9.5
01/01/2014
31/12/2014
01/01/2014
31/12/2014
31/03/2015
CET1 FL including AFS unrealized sovereign exposure
capital gains
31/03/2015
Capital
(€m)
2,019
2,024
2,053
1,904
2,022
2,060
RWAs
(€m)
21,334
19,906
20,052
21,500
20,141
20,052
Room for improvement: RWA density of 82%(2) (Credit RWA density of 64,5% vs. market average of 54%)
BMN has already started IRB process
(1)
(2)
2014 includes €294mn of net Available For Sale (AFS) capital gains and 1Q15
includes €329mn of capital gains.
RWAs/Credit RWA density calculated as RWA/Credit RWA over Net Loans and
Net Foreclosed Assets. Market competitors: Bankia, Bankinter, Caixabank,
Liberbank, Popular y Sabadell.
12
5


Positioned for Growth
LTD ratio already below 100% supported by a resilient commercial franchise: deposit growth of 2.3% since 2013 despite
headwinds and restructuring.
Well positioned to leverage on Spanish recovery: B/S growth, NII improvement and normalization of cost of risk expected to
lead to ROE above cost of capital
1
Starting Point:
Regional Dominant Player
LTD ratio (1)
-4 p.p.
102.5%
102.5%
99.4%
98.8%
1Q 2014
1
Room for growing B/S
2Q2014
2
96.7%
3Q2014
1.7%
Room for growing NII
1.4%
1.5%
1.2%
Mar-14
3
Jun-14
Cost of risk normalization
1.3%
1.0%
1.2%
0.6%
0.8%
Sep-14
Dec-14
Back book
New production
Mar-15
3 Cost of risk evolution (bps)
234
ROE > Cost of Capital
1Q15
Term deposits costs evolution
1.9%
2
2014
mar-14
283
224
193
jun-14
123
sep-14
dic-14
mar-15
(1) Calculated as Net Loans excluding ICO
/ Deposits
Cost of risk calculated as annualized loan loss
provisions /avg net customer loans
Source: Management Information
60
Target
Normalised
CoR
13
Agenda
1. BMN’s Business Model
2. Restructuring Plan already completed
3. Positioned for Growth
BMN has received public aid compared to its provisioning effort significantly lower than
that of its peers both in absolute and relative terms
Public aids to Spanish financial sector
(2009 – 2013 ; M€)
22,424
17,959
39,078 M€
FROB 3
FROB 2
FROB 1
Other aids (DGS)
12,052
5,181 M€
9,294 M€
7,942 M€
Total
61,495 M€
9,052
9,084
5,425
4,465
Bankia
Total Assets
Public aids/
Impairments (2)
(2010 – Dec 2014)
Catalunya
Banc
NCG
5,249
4,500
998
Banco de
Valencia
CAM
1,864
1,645
124
1,740
730
915
Liberbank
(& CCM)
BMN
1,129
604
525
CEISS
42,337
-
-
-
-
-
977
Banca
Cívica
953
407
245
Unnim
Caja 3
Banco
Gallego
318,119
77,049
72,236
-
-
50,847
67,201
44,022
17,012
10,087
-
-
7,452
9,451
6,477
-
-
-
50.9%
70.8%
89.7%
-
-
25.0%
17.4%
17.4%
-
-
-
(2011; M€)
Impairments(2)
(2010–Dec 2014) M€
1,718
1,250
2,465
1,162
5,498
(1)
-
(1)
(2)
Consolidated undisclosed financial accounts as of December 2014
No data for Banks which were acquired before the end of the period
considered. Latest data available
Source: Bank of Spain and consolidated public financial accounts
15
Restructuring plan already completed
Branches - count
Operating Expenses
€Mn
FTE - count
-52%
-52%
-52%
8,643
843
1,640
4,189
2010
795
784
2014 Target
1Q15
Restructuring commitments
for 2014 and 2017
completed
2010
2014 Target
4,183
1Q15
2010
Restructuring commitments
for 2014 and 2017
completed
394
391
2014 Target
1Q15
(1)
Restructuring commitments
for 2014 and 2017
completed
Source: Management Information.
(1)
1Q15 expenses annualized
16
(1)
BMN has significantly reduced its balance sheet size, however deleveraging has been
carried out in non-core regions, unattractive credit segments and less profitable assets

Total assets fell c.29% since 2012, due to the important transformation of the balance executed over the year 2013
Total assets
(€m)
-9,779
Selloff of Cataluña and Aragon business
to Banco Sabadell:
€9.8bn assets
€9.6bn liabilities
462 branches
Operation closed on May 31, 2013
On 28th February 2013, BMN sold €5.8bn
real estate related assets to SAREB getting
in exchange Government guaranteed bonds
valued at €5.8bn
-1,918
-5,820
+5,820
-2,032
63,380
-1,500
-632
53,601
47,518
43,835
Total
assets
Dec-12
Catalonia
business
sale
SAREB
sale
SAREB
bond
Total
assets
Dec-12 (1)
Reduction
wholesale
assets
Loan
reduction
Retained
covered
bond
prepayments
Other
Total
assets
Dec-13
Total
assets
Dec-14
44,730
Total assets
Mar-15
(1) Excl. Sabadell and SAREB transactions
17
After deleveraging process, organic capital generation is being achieved


+0.3pp of organic capital generation during 1Q15.
CET1 ratio of 10.2% and of 10.3% on Fully Loaded basis.
+0.3%
(%)
1.3
1.5
Mar 2015
1.2
BIS 3 CET1 of 10.2%
CET1 Fully Loaded 10.3% (2)
11.5
10.3
9.1
9,1
10.0
8,8
8.9
11.8
10.3
8,9
Risk Weighted Assets
€20.05bn (Phased in and Fully
Loaded)
vs
Credit Portfolio: € 23.4bn
Proforma Organic
CT1 EBA Generation
(1)
Dec-12
BIS 2.5
Dec-13
BIS 3
BIS 3
Organic
BIS 3
Deductions CET 1 FL Generation CET 1 FL
& RWA 01/01/2014
Dec 2014
Increase
BIS 3
CET 1 FL
Mar 2015
BIS 3 w/
AFS
Capital
Gains
CET 1 FL
Dec 2014
BIS 3 w/
AFS
Capital
Gains
CET 1 FL
Mar 2015
Source: Reported consolidated accounts as of December 31,
2013, 2014 and reported consolidated financial statements
for March 2015
(1) Includes recapitalization process and Catalonia &
Aragon business unit sale and transfer of RE Assets to
SAREB.
(2) CET 1 BIS 3 of 11.8%, including recent ECB criteria
regarding AFS unrealized gains impact on B3 FL CT1 ratio.
18
Agenda
1. BMN’s Business Model
2. Restructuring Plan already completed
3. Positioned for Growth
Deleveraging almost completed. Latest quarterly figures almost flat
Mar 2014
Jun 2014
Sep 2014
Dec 2014
Mar 2015
QoQ
TOTAL ASSETS
47,715
46,465
45,193
43,835
44,730
+2.0%
-6.3%
Loans to customers
25,060
25,000
24,249
23,538
23,403
-0.6%
-6.6%
Foreclosed assets
643
749
803
913
920
+0.8%
+43.1%
Customer deposits
23,299
23,325
23,547
23,490
22,820
-2.9%
-2.1%
Wholesale funding
15,011
14,771
13,082
12,460
14,384
+15.4%
-4.2%
102.6%
102.5%
98.7%
96.7%
99.4%
(€mn)
LTD
(Loans to customers – ICO loans) / Customer
Deposits
YoY
Source: Reported consolidated annual accounts as of 2014. Reported
consolidated interim financial statements as June 2014, and consolidated
financial statements for the rest
20
New lending to SMEs and corporates takes 56% of total, with rates close to 3.5%
 During past few years, BMN has significantly reduced its credit portfolio. Nevertheless trend is changing and monthly new loan
production is increasing firmly, benefiting from Spanish economic recovery.
1Q 2015 New lending
(€mn)
Quarterly New lending breakdown
(€mn)
719
YoY
+35%
Weight
100%
671
New lending
Individual mortgages
Individual others
SME & Corporates with real guarantee
SME & Corporate others
112.0
68.1
New rates
112
532
547
83
95
3.34%
6.75%
66.7
3.34%
332.2
3.51%
13.6
4.62%
126.0
228
1.47%
718.7
3.44%
Versus 2.94% back
book loans yield
+54%
56%
+8%
19%
336
281
13,6
29
1Q2014
Total
67
12
332,2
100
Public Sector
66,7
89
71
221
Other
87
90
85
25%
68,1
503
61
31
+25%
110
42
34
44
2Q2014
3Q2014
8
33
126
17
4Q2014
1Q2015
Individual mortgagaes
Individual others
SME & Corporate with real guarantee
SME & Corporate others
Other
Public Sector
Source: Management information
21
Net Interest Income has shown resilience in spite of retail portfolio reduction

Customer spread improved 33bp YoY thanks to the lower cost funding and the relative strength of the loan yields
NII quarterly Evolution
(€mn)
152
Customer spread evolution %
3.20
140
139
6
133
127
4Q14
1Q15
30
(1)
3.18
3.13
3.03
2.94
146
109
2.06
2.13
2.20
2.19
1.87
1Q14
2Q14
3Q14
Ordinary
One-Offs
1.32
1.12
NII quarterly variation breakdown (€mn)
1.00
0.84
0.74
3
Mar-14
Jun-14
Customer funds
Sep-14
Loans yield
Dec-14
Mar-15
Customer spread
-9
ALCO Sale & SAREB repricing
(1)
B/S & Rates
Adjusting NII based on current levels of the Fixed
Income Portfolio as of 1Q 2015
Source: Management Information.
22
Stable costs, after restructuring
During 1Q15, BMN has been able to keep costs under control, being one of the most efficient entities in the financial
system.

General expenses quarterly evolution
Leading to a highly efficient platform
(€mn)
Mar 2015
Operating expenses
(% on Average Total Assets)
1.45
1.37
1.26
1.12
€121m
€104m
7
€102m
6
8
33
7
0.09
34
0.74
0.06
0.42
0.06
0.21
0.24
63
64
0.29
0.35
0.34
24
33
0.09
0.67
0.88
€98m
41
0.18
0,11
1.02
7
€92m
0,27
67
62
50
0,60
0.59
0.61
BMN
Peer 5
Peer 6
0.78
0.72
0.70
Peer 4
Peer 2
0.44
10
1Q2014
2Q2014
Extraordinaries
3Q2014
4Q2014
Personnel Expenses
G&A
1Q2015
Depreciation
Extraordinary expenses due to FGD deposits levy (c.€10mn)
Peer 1
Personnel Expenses
G&A
Depreciation
Peer 3
Extraordinary
Source: Reported consolidated annual accounts as of 2014.
Reported consolidated interim financial statements as June 2014,
and consolidated financial statements for the rest
.
Note: Peer group includes Bankia, Bankinter, Caixabank, Liberbank,
Popular and Sabadell
23
Appendix
A. Spanish financial system concentration
B. BMN’s Shareholders, Corporate Governance and Management Team
C. BMN’s 1Q 2015 Results
D. Comfortable liquidity position
E. Asset Quality
Following the financial reform the Spanish financial system has led to a greater
concentration
A

Following the restructuring, only 4 out of the 14 remaining institutions can be considered regional players
Total Market
•
# banks
•
Average size
(€bn)
2008
2010
1Q2015(1)
61
40
48
53
14
161
• Euro Area debt
crisis
• Government
starts Financial
Sector Reform
in 2012
• Financial sector
Reform
achieved: B/S
clean up,
recapitalization
and
concentration
• Start of the
crisis
• First steps in
restructuring,
M&A and
concentration
(1) It does not include Banks with total assets
below €30bn
25
B
BMN has committed to become a publicly listed company in the future


BMN’s shareholders’ distribution changed considerably during 2013, due to the recapitalization process
BMN considers that becoming a publicly traded entity is an essential milestone in its strategy as this process will:
– Enable the Company to access the capital markets
– Increase the visibility of the entity
– Allow for the FROB and other investors to carry out an orderly divestment process
BMN’s shareholder structure as
of December 2012 (voting rights)
BMN’s shareholder structure as of
Mar 2015
15.5%
25.1%
19.5%
74.9%
Founding Cajas(1)
Private MCB holders
Before FROB prefs conversion and burden sharing
65.0%
Founding Cajas(1)
Others (2) FROB
Current shareholders composition – Mar 2015
Total Equity: €2,170mn
Total number of shares: 1,613,653,104
Book Value per share: €1.35 / share
Intangible assets: €113mn
Source: Management Information
(1) Cajamurcia, Caja Granada, Caixa Penedès and Sa Nostra
(2) Institutional and professional investors that converted
MCNs and T1 and T2 instruments into common stock as
26
part of the restructuring carried out
B
Corporate Governance
Board
Carlos Egea
(BMN)
Since January 1981 he has been posted to occupy several
senior roles, such as Commercial Assistant Manager in 1993
and Managing Director in 2008. He’s also been Business
General Manager until 29th January 2013, and is currently the
CEO.
He was the European Finance Bank’s chairman and CECA’s
Monitoring Committee secretary. He has also been a board
member and director on a variety of public and private
organisms.
He is partner in Auditecto, S.A., an accounting company, and is
President for Murcia’s Territorial Aggrupation, as well as
member of Spain’s Association of Tax Consultants.
He is member of the Board of Directors in Sa Nostra, the
Registry of Economists and Tax advisors (REAF) and Spain’s
Tax Advisors Association (AEDAF). He’s also Ibiza’s Balearic
Islands Economists School delegate (CEIB).
He has been VP of Caixa Penedés, and former member of the
general assembly of ¨LA CAIXA.
He started his career in finance in Banco Atlántico, and in 1976 he moved
to Cajamurcia, where he became General Manager in 1983. Since June
2008 he is Cajamurcia’s and Fundación Cajamurcia’s chairman, having
been vice-chairman of the latter since its foundation in 2001.
Tomás González Peña was Grupo Santander’s Deputy
Managing Director. He was appointed administrator for
CajaSur and CAM by the FROB.
Joaquín
Cánovas
(BMN)
FROB (1)
Antonio Jara
(Fundación C.
Granada)
Isabel Aguilera
She was General Electric Spain and Portugal, and Google
Iberia’s president, as well as Chief Operating Officer for NH
Hoteles, and Dell Computer’s CEO for Spain, Italy and
Portugal.
Jose Manuel
Jódar
(Fundación C.
Murcia)
Leticia Iglesias
Occupied several roles in CNMV’s Deputy Presidency Direction,
and Credit Entities Supervision Committee and in Spain’s
Institute of Certified Public Accountants General Management.
Juan Riusech
(Fundación Sa
Nostra)
Manuel Jesús
Lagares
Held responsibility as deputy secretary for the Minister of
Economics and counselor for Economic Affairs to Spain’s
president. He has also led the Tax System Restructuring
Committee in Spain.
Alvaro
Middelmann
Mallorca’s Chamber of Commerce vicepresident, and Tourism
and Transport Commission president. He was Air Europa’s
advisor to the chairman and member of the board in Exceltur.
Albert Vancells i
Noguer
(Fundación
Pinnae)
(1) Represented by Tomás González Peña
Executive
Representatives
Independent
Source: Management Information
27
B
Management Team
Management Team
Carlos Egea
Executive President
Joaquín Cánovas
CEO
Finances
Business
Planning & Control
Luis Mendoza
Máximo
Jaime
Ignacio Ezquiaga
Funding, ALM
& Capital
Instruments
Isabel Alonso
Secretary
Resources
Investments
Fulgencio Martínez
Juan Antonio
Zaragoza
Alfonso Cárcamo
Investor Relations
Santiago Barroso
c.80% of top management comes from Cajamurcia, the leading Caja within BMN and the soundest and most profitable franchise
in the BMN group. This highlights the confidence of FROB in the management team during the restructuring process
Source: Management Information
28
C
Recent 1Q2015 results
% over ATA
€mn
1Q14 2Q14 3Q14 4Q14 1Q15 YoY
Net interest income
1Q14
1H14 9M14 2014 1Q15
139
152
140
133
127
-8%
1.17
1.23
1.23
1.22
1.15
Dividends
3
7
1
4
4
+28%
0.03
0.04
0.03
0.03
0.03
Net fees and
commissions
57
51
49
60
46
-19%
0.48
0.46
0.45
0.47
0.42
Net trading income
73
96
162
119
39
-46%
0.61
0.71
0.94
0.98
0.35
Other
-11
9
-13
-19
1
-0.09
-0.01
-0.05
-0.07
0.01
261
315
339
301
217 -17%
2.20
2.43
2.60
2.63
1.96
-104
-92
-102 -120
-98
-6%
-0.88
-0.83
-0.85
-0.90
-0.88
Pre provision profits
157 223 237 181 120 -24%
(PPP)
1.32
1.60
1.76
1.72
1.08
-72 -52%
-1.26
-1.38
-1.27
-1.25
-0.65
0.23
0.02
-0.11
-0.16
-0,13
Gross income
General and
administrative
expenses
Provisions and
Impairment losses
-150 -177 -119 -134
Other results
28
-23
-41
-37
-15
Net operating
income
35
23
77
9
33
-4%
0.29
0.24
0.38
0.31
0.30
Taxes
-12
-5
-17
-8
-6
-48%
-0.10
-0.07
-0.09
-0.09
-0.06
Net income
23
18
60
0.4
27 +18%
0.19
0.17
0.29
0.22
0.24
Source: Reported consolidated annual accounts as of 2014. Reported
consolidated interim financial statements as June 2014, and consolidated
financial statements for the rest
29
C
Growing off balance sheet business
Mutual funds - AuM(1)
Pension funds - AuM
(€mn)
(€mn)
1,322
914
852
1,295
1,283
774
1,265
714
1,247
628
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
Source: Management Information.
(1) Includes SICAVs
30
C
Recurrent income generation and efficiency
Recurrent income generation ex NTI (1)
(€mn)
85
10
118
95
88
79
75
Efficiency ex NTI – Cost to Income (2)
1Q2014
2Q2014
Ordinary
3Q2014
4Q2014
1Q2015
Negative One off due to deposit levy
68%
57%
55%
62%
55%
42%
General expenses
1Q2014
o/ ATAs
1.09%
0.88%
0.78%
1Q2014
Total
2Q2014
0.89%
3Q2014
2Q2014
Total
1.00%
4Q2014
3Q2014
4Q2014
1Q2015
Adjusted ex - Deposits Levy and one - offs
0.88%
1Q2015
Adjusted ex - Deposits Levy and one-offs
Source: BMN’s Management Information and public
reported consolidated figures
(1)
Recurrent income generation calculated as
(Net interest margin + dividends + net fees –
general expenses)
(2)
Cost to income ratio calculated as general
expenses over gross margin net of NTI
31
C
NPL decreasing, coverage improving and cost of risk decreasing
Non Performing Loans Ratio
(%)
13.8
1Q 2014
13.8
1H 2014
13.8
3Q 2014
13.8
2014
Non Performing Loans
(Gross exposure)
Gross
Credit
€mn
13.3
1Q2015
Mar-15
NPL % Cover.%
Individual
15,304
mortgages
Individual other
1,036
SMEs & Corp
3,977
secured
SMEs & Corp
2,592
unsecured
Real Estate
848
Other Construction
130
Public Sector
604
TOTAL
24,492
NPL Coverage
(%)
Gross
Credit
€mn
Dec-14
NPL % Cover.%
7.3
26.7
15,470
7.3
25.9
5.6
82.1
1,031
5.0
77.0
28.1
30.7
4,429
30.3
33.0
17.5
86.7
2,524
19.0
84.6
55.3
56.3
0.95
49.4
49.6
594
138
574
24,761
58.3
55.6
1.1
49.4
49.0
Cost of Risk / Quarterly evolution (1)
2.8%
+4.6pp
40.5
36.4
36.7
41.0
2.3%
2.4%
38
2.0%
1.2%
1Q 2014
1H 2014
3Q 2014
2014
1Q 2015
1Q14
2Q14
3Q14
4Q14
1Q15
Source: management information
(1) CoR calculated as annualized provisions
over net loans
32
D
Comfortable liquidity position

Wholesale assets funded with wholesale liabilities. Total contribution of wholesale business to NII is 10% and expected to
decrease
Wholesale assets breakdown
as of Mar2015 (€mn)
Wholesale liabilities breakdown
as of Mar2015 (€mn)
13,989
14,384
1,282
833
472
700
Cash and deposits
Repo
Subsidiaries
3,009
Floating rate
(Eur 3 months)
5,552
730
4Q14: 4,537€mn
c.€1bn QoQ
5,592
608
RMBS
ESM Repo
SPGB Repo
Uncovered Debt
SAREB Bond
ESM Bond
1Q14: 5,900€mn
c.€0.4bn QoQ
4,168
ECB
5,427
Covered Bonds
Maturity in 2015
ALCO
Fixed Income
portfolio
IRR: 2.75%
Duration: 4.2 yr
Wholesale Assets
Wholesale Liabilities
Source: BMN management information.
33
D
Comfortable liquidity position
 Comfortable maturities profile. Total disposable liquid assets amounts to 16% of total assets, following its normalization trend
Wholesale Funding Maturities
(ex-repo and ECB, as of Mar 2015) €mn
3.500
3.000
3,360
2.500
2.000
1.500
1,259
364
1.000
680
500
577
2015
Covered bond
469
10
0
2016
RMBS
2017
Unsecured bond
30
>2018
Governments guaranteed bonds
Liquidity Buffer in Cash Terms
€mn
Mar14
Jun14
Sep14
Dec14
Mar15
Total liquid assets (ex repo)
15,545
14,151
13,779
13,024
11,538
ECB
5,900
5,400
4,000
3,800
4,168
Total disposable liquid assets
9,645
8,751
9,779
9,224
7,370
% over total assets
20%
19%
22%
21%
16%
Source: BMN management information.
34
E
Foreclosed RE assets exposure is limited to 2.06% of total assets due to BMN’s
transfer of assets to SAREB and the active management
Foreclosed assets and coverage (1)
Mar-2015 (net value, %)
Others
136
Coverage of Foreclosed assets vs gross assets (1)
(%)
36.55
40%
Land
48.95%
137
39%
Buildings under
construction
20
39%
39%
sep-14
dec-14
53.98%
38%
Finished
buildings
626
Total Foreclosed:
€920mn
36.93%
39.50%
Total Provisions:
€601mn
mar-14
jun-14
mar-15
Source: Reported consolidated annual accounts as of 2014. Reported
consolidated interim financial statements as June 2014, and
consolidated financial statements for the rest
(1) Including €301mn value corrections due to financial assets
impairments applied at foreclosure.
35
E
RE loan exposure is limited to 3.46% over total gross exposure
Real estate loans exposure and coverage
Mar-2015 (Gross value, %)
Others
136
Land
Buildings under
construction
53.69%
31.59%
182
16.63%
98
Finished
buildings
Total RE loans:
€848mn
433
19.65%
27.36%
Total Provisions:
€232mn
Source: Management Information
36
37