Communiqué of Rodrigo Rato

As chairman of Caja Madrid from January 2010 and then chairman of Bankia, we have faced one of the most critical situations that has ever shaken the Spanish financial system. And yet Caja Madrid successfully led the biggest financial integration in Spain, involving six other savings banks: Bancaja, La Caja de Canarias, Caja Ávila, Caja Segovia, Caixa Laietana and Caja Rioja.

Just five months after Bankia started operations in February 2011, we succeeded in taking the company public in the biggest Initial Public Offering (IPO) registered that year in the entire global financial system, raising more than 3,000 billion euros. The core capital ratio of Bankia currently stands at 10.6%.

In December 2011, I presented the institution’s Strategic Plan for the period to 2015, which will enable the Bank to consolidate its position as one of Spain’s top four financial institutions. Despite the adverse market conditions and the added difficulties of the whole merger process, in 2011 Bankia posted profits of 309 million euros, as well as having brought forward more than 1,200 million euros of provisions. Bankia has restructured its branch network, with the closure of 800 branches. And it has carried out a workforce reduction that accounts for 25% of the overall reduction in the Spanish financial sector as a whole.

At the same time we have achieved a cost reduction which this year is approaching 550 million euros and which in 2013 and subsequent years will increase to 700 million euros. Total income in the first quarter of this year was up 25% compared to the first quarter of 2011; that is, a margin of 1,311 million euros, compared to 1,048 million in the same quarter last year.

Having achieved all the milestones just described, I have decided to pass the baton to a new executive, in the belief that this is what is best for the institution.

I will propose to the General Meeting of BFA that Mr. José Ignacio Goirigolzarri be appointed a Director of the Bank. I will also propose to the Bankia Board that Mr.Goirigolzarri be appointed a Director of Bankia. Subsequently, I shall propose that the Boards of BFA and Bankia, on compliance with the requirements established by their bylaws, appoint Mr. José Ignacio Goirigolzarri to be Executive Chairman of both institutions, as I consider him to be the most suitable person to lead this project at the present time. @Bankia @PressBankia

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For me, being chairman of Bankia, BFA and Caja Madrid for these two years has been a great honour and has given me great personal and professional satisfaction.

I must thank the members of the Boards and Assemblies, my staff and the entire workforce for their support and loyalty during the birth and development of Bankia and BFA.

The trust placed in us by more than 10 million customers and more than 400,000 shareholders is one of the greatest satisfactions I have had as chairman of Bankia and remains the great strength that guarantees the future of this institution.

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