Group profile Corporate Social Responsibility Report 2009

Group profile 1. Key figures 2. Organisation structure 3. Geographical footprint 4. Our business 5. Commercial brands 6. Presence in sustainable share indices 014 Group profile 015 Corporate Social Responsibility Report 2009

1 Key Figures

Banking since 1881 MultiBanca was set up, specialised in wealth management On 31 December A pioneer in and private banking: 1881, a group of 127 computerised International and that is how businesspeople and banking in , expansion: it merchants in Sabadell Banco Sabadell opened its first came into being. incorporated new office abroad, () founded With the goal of technology into its in the centre the , with the preserving the bank’s accounting and of . 2001 goal of financing local independence, the administrative industry and providing shareholders set up 1988 processes. it with raw materials a share syndication 1986 (wool and coal) in better agreement. 1978 conditions. 1975 Banco Sabadell 1968 was floated and 1965 Introduction of began a new era. 1953 distance banking: 1881 1907 It began the telephone moving (FonoBanc) and the It began expanding beyond computer (InfoBanc) into the nearby towns. were incorporated as Banco Sabadell began when it new communications a new era: it liquidated opened a and services its non-banking branch in channels available businesses and Madrid. to customers. focused on commercial banking.

History of Banco Sabadell group 016 Group profile 017 Corporate Social Responsibility Report 2009

Acquisition of Banco The Bank Urquijo, which created a Capital increase to strategic alliance finance the acquisition of consolidated Banco Sabadell with insurance Banco Atlántico, and the group Zurich. The Bank entered the completion of the purchase. as the second- largest private new millennium with a Integration of Banco stronger organisation and banking institution Atlántico into the group in in Spain. 2009 a customer-focused, multi- terms of technology and brand and multi-channel operations, and creation of 2008 strategy, new business the SabadellAtlántico brand. 2007 lines and consolidation and growth as its goals. 2006 Banco Sabadell acquired Mellon 2004 2003 Banco United National 2002 Sabadell Bank. acquired TransAtlantic Bank of Banco Sabadell (US). launched a bid for 100% of Banco Atlántico, S.A.

History of Banco Sabadell group 018 Group profile 019 Corporate Social Responsibility Report 2009

Important events in 2009

January • Banco Sabadell renewed its Seal of Excellence (500+ points) granted by the European July Foundation for Quality Management (EFQM) • Banco Sabadell launched www.solvia.es with a view to selling real estate assets belonging to the bank and to developers February • Banco Sabadell acquired Mellon United National Bank • Banco Sabadell and the Spanish Confederation of Employers’ Organisations (CEOE) • Banco Sabadell, together with the European Investment Bank (EIB), set up a 200 signed an agreement to promote actions that improve competitiveness in the part of million euro credit line for SMEs Spanish companies March August • The General Shareholders’ Meeting approved the appointment of Ms. Sol Daurella • The University of Barcelona agreed to grant credit for in-house training of Banco Comadrán as an independent director Sabadell employees (LAUDE programme) • Banco Sabadell and employers’ association Cecot signed an agreement to improve funding for companies September • Banco Sabadell ensured the payment of city government suppliers in at most 30 days, • Banco Sabadell and the IESE Business School created IESE-Banco Sabadell Chair offering payment management via BS Confirming on emerging economies • Banco Sabadell paid shareholders an interim dividend of 0.07 euro April • Banco Sabadell opened an office in , making it the first Spanish bank with • Banco Sabadell redesigned its paycheck service, making it one of the most competitive a branch in the UAE on the market • Banco Sabadell presented the 2009 Solidarious Aces initiative and donated funds October raised to the Special Olympics • The Instituto de Estudios Financieros granted Banco Sabadell the award for financial excellence in communication due to the transparency and accessibility of its financial May information • Banco Sabadell and the Catalan Association of Municipalities and Regions signed a • Banco Sabadell opened a branch in , Morocco cooperation agreement: 96% of Catalan city governments will have access to funding and other financial products November • Banco Sabadell launched BSIdea, a blog where employees can contribute and discuss June ideas for improvement • Pol Antrás, 8th Banco Herrero Foundation Award • Banco Sabadell’s real estate fund added the new Quirón Vizcaya Hospital to its • Joan Seoane, 4th Banco Sabadell Award for Biomedical Research investment portfolio • Banco Sabadell obtained ISO 14001 environmental certification for the Serrano building in Madrid December • Solbank was named “the best branch network in the last decade” according to the • Banco Sabadell signed an agreement with CO2 emissions trading bourse SENDECO2 to act as central counterparty EQUOS study • Banco Sabadell held its annual executive convention and presented the Quality awards • Banco Sabadell paid its shareholders a second dividend of 0.07 euro The value of trust 020 Group profile 021 Corporate Social Responsibility Report 2009

Founded in 1881, Banco Sabadell is Spain’s fourth-largest banking group, with a also a young, well-trained staff, equipped with the most modern technological and network of , brands, subsidiaries and affiliates that covers all areas of the commercial resources. The bank’s management approach is focused on building finance business under the same basic premise: professionalism and quality. long-term customer relationships, providing the best financial solutions with a Our leading position in corporate and personal banking is due principally to the fact comprehensive offer of products and services. that we have a customer-focused multi-brand and multi-channel organisation and

Banco Sabadell Basic Information

Key Figures (€ ‘000) 31/12/2009 31/12/2008 31/12/2007 Ratios (%) 31/12/2009 31/12/2008 31/12/2007 Total assets 82,822,886 80,378,065 76,776,002 Profitability and efficiency (%) Gross loans and advances to customers 65,012,792 64,704,240 63,219,330 ROA (net profit over average total assets) 0.64 0.85 1.08

Income (€ ‘000) ROE ( net attributable profit over average shareholders’ equity) 11.36 16.16 20.37 Gross income 2,505,030 2,226,846 2,161,816 Efficiency (general administrative Operating profit before impairment expenses over gross income) 43.05 43.97 47.00 and other provisions 1,325,477 1,114,614 1,017,352

Net attributable profit 522,489 673,835 782,335 Capital ratios (BIS) (%)

Shares Core capital 7.66 6.67 6.01

Number of shares 1,200,000,000 1,200,000,000 1,224,013,680 Core capital ( including generic 8.14 8.06 7.33 provision net of tax) Number of shareholders 89,910 88,289 80,669 Tier I 9.10 7.28 7.22 Attributable earnings per share (euro) 0.44 0.56 0.64 Tier I (including generic provision 9.58 8.68 8.54 net of tax) Number of branches in Spain 1,214 1,247 1,225 Risk management Number of employees 9,466 9,929 10,234 Loan loss ratio 3.73 2.35 0.47 ATMs 1,452 1,466 1,474 Loan loss coverage ratio 69.03 106.93 394.29

Breakdown by business area

Gross income (€ ‘000) 2009 2008 Profit before taxes (€ ‘000) 2009 2008

Commercial Banking 1,813,866 1,787,260 Commercial Banking 373,206 462,163 Corporate Banking 189,402 168,459 Corporate Banking 64,841 66,331 Banco Urquijo 50,589 58,273 Banco Urquijo 13,340 12,234 Asset management 34,779 41,192 Asset management 16,649 25,084 022 Group profile 023 Corporate Social Responsibility Report 2009

2 3 Organisation structure Geographical footprint

The organisation is structured around the business units. Commercial activity is what Banco Sabadell operates 1,190 branch offices around Spain, divided into determines how capital and funds are assigned within the organisation, as well as Commercial Banking, SME Banking, Corporate Banking, and Private Banking the functional architecture. outlets. Each business department has autonomy to define its own strategy and business model. This autonomy is supported by robust, standardised management information systems and is guided by the policies set by the Executive Committee and corporate units, which are ultimately responsible for making rules, controlling Distribution of branches in Spain by type of customer risks and assigning the necessary human, material and technological resources to ensure that each unit is fully operational. Sabadell BancoHerrero Solbank BancoUrquijo ActivoBank TOTAL Atlántico

Banco Sabadell organises its branch network in Spain into Territorial Divisions, Commercial Banking 854 177 85 2 1,118 which have full responsibility for the entire branch network in their areas. Additional Commercial Banking 52 4 56 information about the organisation structure may be found in the Annual Report. - business branches Corporate Banking 2 2 Private Banking 14 14 Chairman TOTAL 908 181 85 14 2 1,190

Comptroller General

General Corporate Secretary Transactions branches 2 14 Managing 1,190 in Spain Corporate Private banking Finance Director Media and Institutional banking Department Relations 56 Commercial 1,190 Corporate Markets BS banking Operations Commercial Banking Branches and Private BS America Real Estate Bancassurance and Corporate Banking and Global Business Development Banking in Spain Businesses branches Human Resources 1,118 Commercial Risks banking

Corporate Businesses functions 024 Group profile 025 Corporate Social Responsibility Report 2009

Banco Sabadell’s has branches, subsidiaries and affiliates throughout the world, to enable it to serve its customers. In 2009, Banco Sabadell opened a branch office in Casablanca, Morocco, and a representative office in Dubai, UAE.

Our international presence

Subsidiaries and affiliates • • Hong Kong • USA • Mexico • • Dominican Republic

Branches • USA • France • Morocco • UK

Representative offices • Algeria • Brazil • Chile • China • UAE • India • Mexico • • Turkey • Venezuela 026 Group profile 027 Corporate Social Responsibility Report 2009

4 Our business

Commercial Banking

Corporate Markets and Commercial Banking, Banco Sabadell’s largest business line, is focused Commercial Banking and Private BS America Banking Global on financial products and services for large and medium-sized companies, Banking Businesses SMEs, shops, self-employed persons, personal customers, retail and professional groups, with a level of specialisation that enables it to provide a personalised service to meet the specific needs of all its customers,

SME Banking Corporate Banco Urquijo through specialist staff working in its multi-brand branch network or Banking Bancassurance Individual BS Private through other customer relationship channels. Banking International Banking Trade Commercial Banking services are provided under the SabadellAtlántico, Investments, Consumer Products and Banco Herrero, Solbank and ActivoBank brands. Finance Research Development Treasury Other Capital and Capital businesses Markets and affiliates SME Banking Corporate Finance Securities Dedication to companies is a hallmark of the Banco Sabadell group. and Custodian Structured services Involvement in the industrial fabric has made us a leading bank in the Finance SME segment, allowing us to provide support services in financing

Solvia business and managing treasury, as well as accounts receivable and

Sabadell payable. Banco Sabadell focuses on businesses that provide the BancSabadell greatest contribution to earnings and expand the customer base. d’Andorra “ Personal Banking One of Banco Sabadell’s principal objectives is to offer top-flight banking As a provider of services we essentially look after the needs of others. This and financial solutions to individual customers and adapt to their needs cannot be done by imposing our own demands but by helping others to grow using flexible, effective solutions for each segment. “according to their own desires and plans. Excerpt from the Code of Conduct 028 Group profile 029 Corporate Social Responsibility Report 2009

Corporate Banking and Global Businesses Markets and Private Banking

This area offers comprehensive services to corporations and financial institutions Business unit that manages Private Banking customers and develops our value in Spain and abroad. proposition in the markets.

Corporate Banking The business model is based on specialised finance services and a Banco Urquijo comprehensive range of solutions, including transactional banking services, Banking subsidiary specialised in wealth planning and advisory services, tax and consulting for international transactions, structured finance, and M&A consulting. asset management for legal entities and high net worth individuals, families and institutions. It provides commercial services to its branch network and manages customer portfolios on a discretionary basis. www.bancourquijo.com International Trade A service specifically designed to advise companies, individuals, and international financial institutions on their global activity. BS Private Banking Offers a series of specific products and services to high net worth individuals, families and institutions through its SabadellAtlántico and Banco Herrero branches. Consumer Finance Consumer finance for group customers through BanSabadell Fincom. Investments, Products and Analyses This unit undertakes investment strategies for the whole group, product Development Capital development, investment recommendations, and UCITS manager functions. Focuses on the acquisition of temporary holdings in non-financial companies and www.bsinversion.com in energy projects, especially renewable energy.

Treasury and Capital Markets Corporate Finance Banco Sabadell offers customers specialised advice on all things related to Advisory services for M&A, ownership restructuring, capital markets and, in management of financial risks and optimisation of financial resources through a general, corporate transaction consulting. team of treasury product specialists located throughout Spain.

Structured Finance Securities Trading and Custody Banco Sabadell has a multifunctional team specialised in originating and A unit which offers securities trading and custody services. structuring large long-term funding deals, both corporate and project finance. 030 Group profile 031 Corporate Social Responsibility Report 2009

BS America Bancassurance

The bancassurance business sells a wide range of providential products for BS America is comprised of an operational branch office, various representative individual customers and businesses through the branch network. Banco Sabadell offices, subsidiaries and affiliates, which together provide corporate, private and and Zurich maintain a strategic alliance to develop life and general insurance and commercial banking services in America. pension plan operations in Spain. In July 2009, Banco Sabadell acquired Mellon United National Bank (MUNB)—a major step towards strengthening its operating platform in Florida as part of its international development strategy. Other businesses and affiliates

Solvia Miami Branch Banco Sabadell group company which seeks to create value through land Operational branch in the US focusing on two areas of specialisation: Private and management, property development and rental property management. Corporate Banking. www.solvia.es

TransAtlantic Bank BancSabadell d’Andorra In 2007, Banco Sabadell acquired TransAtlantic Bank , which is specialised in Commercial bank founded in 2001 in the Principality of Andorra. It has a growing retail banking and has seven branches in Miami. network of branches there and its main activity is providing for companies and individuals in the Principality of Andorra. www.bsa.ad Banco del Bajío Banco Sabadell owns 20% of Banco del Bajío, which has 197 branch offices in 24 Mexican states. Dexia Sabadell Dexia Sabadell is specialised in providing finance to regional and local government and for large infrastructure projects and amenities. It was set up in 2001 in Banco BHD partnership with the Franco- Belgian financial group Dexia. www.dexiasabadell.es Since 1999, Banco Sabadell has owned a 20% stake in Centro Financiero BHD, the Dominican Republic’s second-largest private banking group. The group is comprised of Banco BHD and other subsidiaries specialised in insurance, pension funds and other financial services. 032 Group profile 033 Corporate Social Responsibility Report 2009

5 6 Commercial brands Presence in sustainable share indices

The Group’s brands represent distinctive value propositions and are the expression Since 2008, Banco Sabadell has been included in the FTSE4Good and of Banco Sabadell’s adaptation to market needs. FTSE4Good IBEX sustainability indices.

The FTSE4Good index accepts only companies that have demonstrated high standards of corporate responsibility and that minimise the social, Commercial Banking and Corporate Banking ethical and environmental risks in their activities. The acceptance criteria Serving: all of Spain except and Castilla-León are drawn up through an extensive process of consultation in the market www.sabadellatlantico.com and they are approved by a committee of independent experts. A large number of stakeholders, including NGOs, the public sector, consultants, academics, investors and companies contribute to defining those Commercial Banking and Corporate Banking criteria. Serving: Asturias and Castilla-León The FTSE4Good IBEX index is composed of shares in the IBEX 35 www.bancoherrero.com index of Bolsas y Mercados Españoles (BME) and the FTSE Spain All Cap index that fulfil the criteria relating to good practices in corporate Commercial Banking for European residents social responsibility. in Spain’s tourist zones Serving: the Mediterranean coast and the islands Since January 2008, Banco Sabadell has been a member of the Ethibel Investment Register, which selects companies on the basis of corporate www.solbank.com social responsibility criteria: internal social policy, environmental policy, external social policy and ethical economic policy, as rated by the Vigeo Online banking for individuals rating agency. Serving: all of Spain

www.activobank.com

Private banking Serving: all of Spain

www.bancourquijo.com