BANKIA'S IMPACT ON THE ECONOMY AND SOCIETY 2019

October 2020 INDEX 1. Impact generation 4 2. Presence 7 3. Value 13 4. Commitment 17 5. Response 21 6. Regional Impact 27

Technical assistance: VALORA CONSULTORES www.valoraconsultores.com The impact of Bankia on the economy and society in 2019

What does the impact study consist in Bankia's activity as a financial institution has an economic and social impact on its environment. Promoting the management of this activity from a perspective of value creation, listening and responding to the expectations of stakeholders, is a driver of economic, social and environmental development that favors the generation of wealth, employment and opportunities in society.

The tax contribution, the distribution of dividends, the payment of salaries, purchases from suppliers, social collaborations and further- more, the financing to individuals, self-employed and companies, etc., all these elements and the way they are deployed have a real, quantifiable and permanent impact on the company's stakeholders. Moreover, the deployment of corporate commitments within the framework of sustainability and the development of social projects are elements that contribute to the achievement of the challenges facing society today.

The Input-Output framework has been used to assess, in economic terms, Bankia's contribution to the Spanish economy. The impact of Bankia Group in during 2019 has been estimated using a methodology, based on statistical and public data from the national accounts. The analysis developed allows us to obtain three levels of impact on GDP and employment:

Direct Impact Indirect Impact Downstream Impact

Economic, fiscal and social impacts Economic, fiscal and social impacts Economic impacts generated by the generated directly by Bankia's activity: generated beyond Bankia's scope, as a increased consumption of employees in tax payments, distribution of dividends, result of the expenses and investments the sectors targeted by Bankia's salaries and wages paid to its made throughout the supply chain. investments and expenditures. professionals, purchases from suppliers and investment in social initiatives. Jobs generated within Bankia's suppliers Jobs generated along the entire value and jobs generated in the supply chains chain due to downstream economic of these suppliers. impact.

The economic stimulation driven by financing has been calculated on the basis of the indirect and downstream impacts generated by Bankia's lending to its targeted sectors.

The results of this study highlight the differential impact of Bankia on its environment, an impact that derives from its particular characteristics, represented throughout this document.

The most up-to-date public statistical information has been used for all calculations and estimates. The source of the statistical accounting models is the INE and the regional institutes, except in the case of the Region of Murcia, where the impact has been estimated based on the national model. In the case of internal information, it corresponds to the 2019 financial year, except for the response framework in the context of COVID-19, which presents data from the first half of 2020.

03 The impact of Bankia on the economy and society in 2019

Impact generation 1 The impact of Bankia on the economy and society in 2019

How does Bankia generate impact on society?

For Bankia, sustainability means incorporating environmental, the 2030 Agenda, established and approved by United Nations social and good governance criteria in its business strategy, member states; and the contribution to the Principles for while maintaining with stakeholders a relationship focused on Responsible Banking and the Collective Commitment to Climate the generation of value and mutual benefit. To this end, we have Action, promoted by the United Nations and signed by the entity implemented a Responsible Management policy that contribu- in 2019. tes to orienting the business, managing risks and seizing oppor- tunities. This performance is connected to the contribution to This report illustrates the differential elements that position the Sustainable Development Goals (SDGs) for the fulfillment of Bankia as an institution that generates positive impacts in four areas:

PRESENCE VALUE COMMITMENT RESPONSE 1 We generate an We provide solutions We align our In challenging and immediate positive and financing to our strategies and complex situations, impact on Spanish clients for the investments with the such as that economy and society achievement of their needs of our experienced in the through the goals, and stimulate environment coronavirus health development of our the creation of wealth promoting the crisis, we offer activity. and employment in achievement of global solutions for families the economy. challenges. and businesses alike.

In 2019, Bankia's economic impact on Spanish economy through direct activity and financing, reached 29,983 million euro, 2.4% of GDP, promoting the creation of 403,245 jobs, representing 1 out of every 49 jobs in Spain1.

1 Source: INE as of December 2019. 05 The impact of Bankia on the economy and society in 2019

Main figures

Presence Value With the development of Bankia's activity focused on the payment of We work on maintaining a close and accessible relationship with our taxes, the distribution of dividends, the salaries of our employees, clients, responding to their needs and helping them to generate value purchases from suppliers, etc., we generated the following impacts on through the granting of financing operations. spanish economy while allowing us to provide coverage to more than 7.7 million customers in our network of offices and different channels.

In 2019 financing granted to individuals, companies, SMEs EUR 3,815 MILLION and 55,688 jobs in direct, indirect and and self-employed amounted to EUR 22,704 MILLION downstream impacts. Through funding, we contribute to the stimulation of the EUR 617 MILLION in purchases from suppliers, 97% of wich economy for a value of EUR 26,168 MILLION and to boosting were intended for companies and self-employed. the creation of 347,557 EMPLOYMENTS.. EUR 22 MILLION invested in social initiatives, 4% OF In 2019 we achieved 90.3% PERSONAL CUSTOMER ATTRIBUTABLE BENEFIT. SATISFACTION. Commitment to INCLUSIVE LEADERSHIP, developing gender We bring our services closer to the customer: 3.2 MILLION diversity as a strategic factor. online Bankia users and 2.8 MILLION mobile Bankia users.

Commitment Response We assume the global challenges in our corporate commitment to In recent months we have defined different lines of action to mitigate development in all aspects of sustainability, by promoting actions based the impact of COVID-19 by staying close to our customers, families and on criteria related to environmental, climatic and social factors. In companies that every year place their trust in us2. addition, we foster collaborations with society that focus on addressing rural development, employment, disability, housing and new poverty, and education by strengthening our positioning towards a sustainable economy.

EUR 7,450 MILLION granted with ICO guarantee. Of this We help mobilize sustainable financial resources worth balance, more than 95% corresponds to COMPANIES, of EUR 9 BILLION in green funding. which approximately 65% are SMEs. Commitment to DIRECT EMISSIONS NEUTRALITY IN 2020. 40,200 MORTGAGE MORATORIUMS, worth more than EUR More than 600,000 BENEFICIARIES of social initiatives, and 4,000 MILLION. 4,070 STUDENTS benefiting from Dual Training programs. 51,500 CONSUMER LOAN MORATORIUMS, worth EUR 330 MILLION . Bankia is regulary subject to ESG ASSESSMENTS. More than EUR 6.8 BILLION in advances of unemployment and retirement benefits.

2 At 30 June 2020. 06 The impact of Bankia on the economy and society in 2019

Presence 2 The impact of Bankia on the economy and society in 2019

Bankia in 7.7 million customers 4.3 million customers the Spanish without commissions EUR 171.1 billion managed3 financial sector 9.97% market share in turnover4 Proximity, commitment, integrity, innovation, digitization and sustainability.

PROXIMITY with our customers through the more than 13,000 professionals who make up our sales network Our customer relationship model aims to generating value from and work every day to maintain their trust. a close relationship that responds to their needs, regardless of when and where they are. We have a multi-channel model that COMMITMENT with our clients, with our professionals allows for personalized and professional advice through and with society, to offer the best service while contribu- face-to-face and digital accessibility, which makes it easier to ting to meet their needs. cover the needs of access to financial products and services at all times.

INTEGRITY in achieving our objectives and in the service we offer to our clients under shared principles and 2,275 268 million values. offices ATM transactions 9,48% of the total 137 daily average transactions in Spain per ATM INNOVATION in the development of new products and services that serve as a driver of growth and allow our 53.3% 749,881 customers to move towards a low-carbon and sustaina- of digital customers clients with personalized digital advice ble economy. through the "Connect with your expert" service

DIGITIZATION as a tool to facilitate the relationship with our customers and advance in efficiency, management We bring banking closer to and communication. population at risk of unbanking. SUSTAINABILITY based on the commitment to responsi- We have 10% of our 5,361 ATMs and 115 ble management by integrating environmental, social branches in sparsely populated areas. We and good governance (ESG) criteria, as well as good business practices in the development of the activity. also bring financial services to more than 250,000 people living in 373 municipalities at risk of financial exclusion through our ofibuses. In 2019, 220,000 operations were carried out for a value of €55.7 million5.

3 Comprised of customer deposits, debt securities issued and off-balance sheet funds managed. 4 Source: as of September 2019. 5 08 For the calculation, the value of operations in the first quarter of 2019 has been estimated on the basis of the value of operations in the following three quarters of the year. The impact of Bankia on the economy and society in 2019

The impact of our activity

Our activity generates a series of direct impacts that mainly affect the public administration, shareholders, professionals, suppliers and society as a whole.

2 DIVIDENDS Remuneration to Bankia's shareholders as holders of capital stock 1 TAXES Contributions made and amounts collected in terms of tax burden

WAGES AND All these elements drive 3 SALARIES the generation of impact Gross remuneration on the economy and linked to the employment employment as a result of relationship Bankia's activity 5 SOCIAL INITIATIVES Monetary contributions made to foundations, associations, etc., with the aim of promoting the development of the closest social needs 4 SUPPLIERS Net payments made in our supply chain for products purchased and services rendered

09 The impact of Bankia on the economy and society in 2019

1 TAXES

€938 million in taxes, taking into account both taxes borne and collected for the administration. Calculating impact on the basis of direct payments to the administration, tax collection and contribu- tions to the FROB via dividends, Bankia's total contribution to €241 million public spending is 1,155 million euros, equivalent to 45% of contributed to customer and taxpayer funds and guarantee Spain's education budget. 6 mechanisms.

260.6 338.6 In 2019, Bankia's effective Taxes borne income tax rate was

TAX CONTRIBUTION 29.97%. Considering all Collected taxes €938 taxes borne, Bankia pays 45 million Social Security euro in taxes for every 100 contributions paid by the employer and the euro of revenue from its employees business. 338.8

2 DIVIDENDS

354 million euro in dividends distributed, over 75% of which to shareholders and investors based in Spain. €217 million in dividends paid to the state through the FROB.7

+2.2% dividend yield compared to IBEX 35 average8 BFA (100% FROB)

Domestic institutional DIVIDEND DISTRIBUTION shareholders (EUR million) . % Foreign institutional . % . % shareholders

Minority shareholders

IBEX 35 IBEX 35 Financial Sector

6 FOGADE, FUR and MUS. 7 Fondo de Reestructuración Ordenada Bancaria, owner of 100% of BFA Tenedora de Acciones, majority shareholder of Bankia. 10 8 Source: Spanish Stock Exchange and Markets, 2019. The impact of Bankia on the economy and society in 2019

3 WAGES AND SALARIES

817 million euro in wages and salaries, for staff made up of 16,035 professionals, 16,029 of which work in Spain. 99.9% of permanent contracts and 56.2% of women on the staff These are the highest percentages within IBEX 35 financial firms

At Bankia, talent management is based on equality criteria, seeking to, promote the development of female talent to balance the presence of women in management positions. In 2019, the presence of women in the highest professional categories increased compared to 2018, reaching 35%.

4 SUPPLIERS

€617 million in payments made to suppliers. The average payment period is 9.44 days, the lowest of all IBEX 35 financial 97% of spending on local institutions, which favours liquidity and access to financing for suppliers suppliers, especially SMEs and the self-employed. More than 9,000 companies and self-employed involved in the value chain 74% of active suppliers are SMEs

We have a supplier certification process that uses scorings to identify economic, social and environmental risks.

5 SOCIAL INITIATIVES

€22.12 million contributed to the development of the environment through social initiatives. €6.4 million in local and rural development projects €3.4 million in housing, mainly for the maintenance of social Bankia's investment in social initiatives rentals €3.1 million in education represents 4% of the company's attributable projects profit, twice the average of IBEX 35 companies9.

9 Based on public information. 11 The impact of Bankia on the economy and society in 2019

As a consequence of these direct impacts, we generate indirect and downstream im- pacts on the entire economy

TAXES / DIVIDENDS / WAGES AND SALARIES / SUPPLIERS / SOCIAL INITIATIVES

0.31% 0.28% of of national national GDP employment

We generate, through our Through our activity activity, an impact of we generate EURm 3,815 55,688 in the Spanish economy jobs

ECONOMIC IMPACT IMPACT ON EMPLOYMENT (EUR million) (EUR million) 3,815 55,688 2,222 34,192 16,029 873 720 5,467

Direct Indirect Downstream Total Impact Direct Indirect Downstream Total Impact Impact Impact Impact Impact Impact Impact

In the financial and sector we directly and indirectly generate 16,963 jobs, which is 1 out of every 25 total jobs in this sector. In line with the bank's innovation and digitization processes, the creation of economic value in the information and telecommunications sector stands out, with a contribution of 327 million euro, 0.7% of the sector's GDP.

12 The impact of Bankia on the economy and society in 2019

Value 3 The impact of Bankia on the economy and society in 2019

The proximity

and satisfaction 90.3% satisfaction of our private customers of our customers 94.7% satisfaction of our corporate customers 92.2% satisfaction of customers are key in our receiving personalized attention through business model "Connect with your expert" The personalized attention to our customers, has allowed us to continue advancing in the results obtained in the satisfaction studies. 36% digital sales

In our firm commitment to quality and proximity in the custo- mer service, we promote digital banking, favoring a multi-chan- nel business model oriented to people, based on technology 3.2 million 2.8 million and constant process improvement. users of users of Bankia Móvil Bankia online Through the functionalities of our digital channels our custo- 27 million 32 million 3 mers can perform more and more operations from anywhere, transactions through transactions in safely, through any digital device, from usual account manage- Bankia online Bankia Móvil ment and equity operations to investment management and contracting of savings and financing products. Nearly 4.3 million customers benefit from the "Por Ser Tú" program

YOU DO NOT PAY FOR:

Maintenance and administration of accounts In 2019 we managed to increase our Ordinary transfers customer base by 1.6% to 7.7 million, Income from domestic checks and promissory notes with 45% of our customers having Annual fee for regular credit cards Regular debit cards direct credit in 2019 Refunds on debit

14 The impact of Bankia on the economy and society in 2019

Hand in hand with our clients, we boost the economy and emplo- In 2019, we financed individuals, yment by generating indirect and downstream impacts on GDP and employment through the granting of financing operations. SMEs and self-employed to the amount of €22,704 million

House loans Consumer loans Loans to companies

€2,937 million €2,725 million €17,042 million 2,731 to individuals 2,545 to individuals 3,686 to SMEs and self-employed 305 to SMEs and self-employed 180 to self-employed 12,629 to companies 727 to promoters

This financing contributes to the economy with 26,168 million euro in indirect and downstream income, 2.10% of the national GDP, which promotes the preservation of 347,557 jobs.

STIMULATING THE ECONOMY THROUGH FINANCING

INDIRECT AND DOWNSTREAM IMPACT INDIRECT AND IDOWNSTREAM OF FUNDING EMPLOYMENT DRIVEN FROM FINANCING 1,138 17,191 5,511 69,926 2,416 41,565

10 House loans Consumer loans €26,168 347,557 Loans to companies million jobs Loans to SMEs and self-employed 11

12

17,103 218,875

10 The impact of the purchase of the second-hand home has been adjusted, integrating in the computation only expenses associated with the purchase (taxes, real estate margins, notary fees, etc.). 11 Includes developers, with sectorial estimation through internal Bankia information. 12 Integrates financing to self-employed for their business activity. 15 The impact of Bankia on the economy and society in 2019

SECTORAL13 DISTRIBUTION OF GDP AND JOBS STIMULATED FROM FINANCING

GDP

Value added to the Spanish TOTAL economy by Bankia's (EUR million) financing (%) Agriculture, forestry and fishing 1,416 4.48% Industry 12,600 6.51% of which manufacturing 9,567 6.26% Construction 1,032 1.45% Trade, transport and hospitality 4,148 1.59% Information and communications 1,341 2.92% Financial and insurance activities 768 1.76% Real estate activities 191 0.17% Professional Services 2,405 2.62% Public and social services 1,110 0.56% Cultural and recreational activities 1,157 2.75%

EMPLOYMENT

Value added to the Spanish TOTAL economy by Bankia's (jobs) financing (%) Agriculture, forestry and fishing 23,251 2.92% Industry 71,385 2.58% Dofe whichla cua lmanufacturing manufacturera 57,650 2.31% Construction 27,243 2.13% Trade, transport and hospitality 75,094 1.29% Information and communications 7,856 1.30% Financial and insurance activities 10,610 2.47% Real estate activities 997 0.65% Professional Services 30,841 1.50% Public and social services 53,406 1.21% Cultural and recreational activities 46,874 3.16%

13 INE sectors. 16 The impact of Bankia on the economy and society in 2019

Commitment 4 The impact of Bankia on the economy and society in 2019

Boosting We contribute to mobilize EUR 9 BILLION sustainability in green funding with responsible financing

Through our 2019-2020 Responsible In this plan we promote actions in areas such as sustainable financing and the development of products and services that Management Plan we coordinate the generate a positive social and environmental impact. To show initiatives that will allow us to reach a our public commitment to the SDGs and the Paris Agreement, we adhered in 2019 to the Principles for Responsible Banking leadership position in sustainability and the United Nations' Collective Commitment to Climate and transition to a low carbon Action. economy. These endorsements represent a further step in our commit- ment to guide and align our business model with a low-carbon economy, reduce the negative impacts of our activity and 4 enhance the positive ones. INSTITUTIONAL COMMITMENTS The collaboration with all environmental actors is a fundamental mechanism. For this reason, we are strengthening our institutional relations and, in line with these objectives, we are committed to becoming direct emissions neutral by 2020.

A year of unity and strong progress for a more sustainable world These memberships, within the framework of the United Nations, involve developing a close relationship with our customers to encourage the development of sustainable products and services, with active management in the measurement of the ESG risks inherent in our operations, and all of this combined with transparent communication Creating Actively Development Connecting with Positive strategies listening to of new governments, impact and constant collaboration with our stakeholders. and policies customer products and regulators and needs services civil society

18 The impact of Bankia on the economy and society in 2019

To accompany and advise our clients towards an The roadmap established in our Responsible Management Plan environmentally conscious economic and social transition, and the performance achieved in the implementation of the Bankia adopted the Equator Principles as a tool for managing, strategic lines of action in terms of sustainability and evaluating and monitoring social and environmental risks in low-carbon economy, allows us to be positioned before responsible financing of projects, we have contributed to: investors who seek returns linked to ESG criteria and to establish a differential position for Bankia.

Finance wind, photovoltaic and solar thermal energy projects, providing financing for: 64.9% of our institutional investors apply €276 million, more than 370 MW. Socially Responsible Investment policies, in a context where every year more Around 7.5% of the new renewable power institutional investors make their installed in Spain in 2019 investment decisions under ESG criteria

This performance allows us to be positioned in the most 10.2% of infrastructure project financing in important sustainability indexes, which has positive 2019 was sustainable. repercussions on a greater visibility for investors and of the value of the company in the market. In addition, Bankia supports TCFD (Task Force on Climate related Financial Disclosure) recommendations on financing and climate change promoted by the UN Financial Stability Board in the analysis of its risks and opportunities associated with climate change. SUSTAINABILITY INDEXES

19 The impact of Bankia on the economy and society in 2019

Social Initiatives

At Bankia we work to provide an 2.24 (10,1%) 0.98 (4.4%) effective response to social needs. We 1.15 (5.2%) 3.10 (14%) work with a long-term commitment, 0.62 (2.8%) Employment Education PRINCIPALESSOCIAL INVESTMENT COLECTIVOS which is reflected in priority lines of BENEFICIARIOS Local development action. 608.499€22.12 Disability 3.46 (15.6%) millionbeneficiarios Employees' projects Housing and new poverty We approach the needs of people seeking to generate the Environment 6.39 (28.9%) greatest positive impact on their lives, committed to their Corporate sponshorship 1.69 (7.6%) well-being, education and employability. We pay special Business sponsorship attention to quality and inclusive financial education and local 2.48 (11.2%) and rural community development.

Among the beneficiaries of the programs with which we collaborate, highlighting people at risk of social exclusion, the disabled, the sick and the elderly. (40.4%) 245,572 189,572 (31.1%)

MAIN BENEFICIARY People at risk of exclusion GROUPS People with disabilities 608,499 Sick people beneficiaries Elderly people 930 846 Other groups volunteers in Social collaborations with Initiative programs foundations and associations (1.3%) 7,709 145,428 (23.9%) 20,218 (3.3%)

Rural development Employability

Our commitment to the development of the closest environment is Employment is one of the main lines of action. Hand in hand with managed in collaboration with the 11 foundations linked to the bank. entities such as the Red Cross, Caritas or Randstad, as collaborators, These foundations develop socio-cultural, environmental, welfare we develop retraining and qualification programs, for people over 45, support, volunteer, local entrepreneurship or anti-depopulation young people and women victims of gender violence. initiatives, among others. We also highlight the collaboration with Integra Foundation and Konecta Foundation developing labor integration programs in which Foundations and number of beneficiaries also participate Bankia volunteers.

90,090 2,788 11,380 A total of 151 employment and labor insertion projects have been carried out. 20,791 2,474 18,359

4,093 1,442 48,142 More than 43,600 beneficiaries

12,114 17,339

20 The impact of Bankia on the economy and society in 2019

Disability Housing and Financial

We work to help normalize the situation of new poverty education people mainly through labor integration. In We have a housing stock for vulnerable Through financial education projects we this sense, the collaboration with the original people. This housing is intended for people facilitate access to financial services and foundations stands out, and especially the who need access through social renting, mitigate the risk of banking exclusion. Convocatoria Capaces carried out with the adapting the payment conditions to personal Bancaja Foundation, which in its sixth edition needs. This priority line is developed through the has granted 150,000 euros to 15 non-profit online multiplatform for financial education associations. "Bankademia" that offers content in multiple 377 formats to promote the understanding of In addition, we encourage the hiring of Social rent contracts executed products and services and encourage the services through Special Employment Centers. financial management of families and SMEs. We emphasize the recruitment in services of 3,766 digital marketing, cleaning and socio-health social rental housing care. In 2019, Bankia will spend more than 3 million euro in maintenance and reparation of 408 NGOs supported these houses. €m 2.49 in investment 172,021 beneficiaries

Dual Training 3 out of 4 The Bankia Foundation for Dual participating students Training acts as an education-business work in the companies with nexus. Therefore, we enable quality which they collaborate and inclusive training promoting employability among young people

The objective of the Bankia Foundation for Dual Training is to link students and educational centers with companies to complete the training of young people and improve their 95 4,070 739 employability. projects with the student participating collaboration of companies beneficiaries companies and educational centers This encouragement of the professional development of the new generations is carried out through the following lines of action: More than - Promotion and improvement of Professional Training and its dual modality 254 150 600 participating vocational certificates of - Encouragement, promotion and dissemination schools professionalism - Research and Innovation training titles - Professional, academic and personal guidance

With this commitment to education, we can improve the society Through the Dualiza Bankia Challenge we provide students with in which we live, fight against social exclusion and advance in a first approach to the labor force, integrating companies and the reduction of social inequalities with the conviction that educational centers with a single objective to promote social education is the driver of change and the engine to make it commitment based on education. possible.

21 The impact of Bankia on the economy and society in 2019

Response 5 The impact of Bankia on the economy and society in 2019

Response to the COVID-19 crisis

COVID-19 is the main challenge we are facing together with the rest of society and whose repercussions are both at a health and economic level, so it directly affects people and the business community. Since the beginning of the crisis we have given priority to our clients and professionals, establishing preventive measures and designing other measures to respond to the specific needs of families, the self-employed, The extraordinary measures adopted SMEs and due to the health crisis of COVID -19, companies. have had a direct impact on our 5 customers through more than 130,000 In this sense, from Bankia's role as a bank, we have the financial solvency and management capacity to be part of the response operations linked to moratoriums or that helps all our clients not to be left behind in difficult times. new financings, which have allowed to

The crisis generated by the COVID-19 has revealed a greater support families and businesses in the flexibility and capacity to adapt to unexpected situations. hardest moments.

For this reason, the proximity and being by the side of our We provide our clients with access to rental, mortgage, loans customers, stands out as the main initiative to mitigate the and cards established through Royal Decree 11/2020 and Royal impact of the situation generated. Decree Law 8/2020. In addition, we promote a series of additio- nal measures to further facilitate access to various grants over and above those established by law. These measures are focused on making mortgages, loans and credit cards more flexible at the end of the month.

23 The impact of Bankia on the economy and society in 2019

SUPPORT FOR FAMILIES POWERED BY ESTABLISHED BY THE GOVERNMENT WHERE BANKIA FACILITATES ACCESS ONE STEP FURTHER...

Aid for rent payment.

Mortgage moratorium up to 3 months of Mortgage assistance through 12-month grace principal and interest payments. period for repayment of principal.

Moratorium on non-mortgage loans up to 3 Assistance through the suspension of principal months of principal and interest payments. repayments during a 6-months period.

Assistance by suspending payment of monthly Moratorium for cards. credit card payments during a 2-months period.

Of the total moratoriums

almost 23,000 95,000 15 moratoriums in total14 are sectoral moratoriums, resul- ting of sectoral agreements to help for a value of nearly customers who need it most, 4,500 equivalent to millions euro €1.05 billion

MORATORIUMS

€ € Mortgages Consumer Loans 40,207 operations granted 51,490 operations granted €4,079 million €330 million

14 Moratoriums for both secured and unsecured mortgage loans under the provisions of the applicable Royal Decree plus the sectorial agreements reached by Bankia in its help to the clients who need it most. 15 Sectorial Moratorium: moratorium on client's outstanding payments, with specific needs due to the COVID-19 health crisis, under more advantageous and accessible conditions than those established by the corresponding Royal Decree-Law. 24 The impact of Bankia on the economy and society in 2019

SUPPORT FOR SMES AND SELF-EMPLOYED POWERED BY ESTABLISHED BY THE GOVERNMENT WHERE BANKIA FACILITATES ACCESS ONE STEP FURTHER...

Renewal of working capital files16 by extending their maturity date by 3 months.

3-months extension of operating credit facilities. ICO COVID-19 Business Loan and ICO COVID-19 Credit Facility Up to 3-months liquidity facilities.

Granting of bridge loans to be repaid from the amounts drawdown from ICO-guaranteed facilities.

Refund of monthly casualty insurance payments made by self-employed during the lockdown period.

Refund of POS maintenance fees paid by self-employed and small business that have not been able to do business as usual during the crisis.

The volume of bridge loans to SMEs The volume of liquidity facilities and the self-employed amounted to granted to SMEs and the self-emplo- almost 3 million euro, in a total of yed amounted to more than 5.5 306 operations. million euros, in a total of 90 opera- tions.

7,450 million euro granted with an ICO guarantee, 18% of the total volume of credit granted to companies during the first semester

Of the balance granted with an ICO guarantee, more than 95% corresponds to companies, of which approximately 65% are SMEs On the other hand, any type of entity can benefit from ICO COVID-19 business financing. At Bankia we work to facilitate access and manage the steps to be followed in order to cover the liquidity needs caused by the COVID-19.

16 Files linked to facilities that cover the most immediate financing needs in companies, for example, for the payment of goods, payroll, etc. 25 The impact of Bankia on the economy and society in 2019

OTHER MEASURES TAKEN At Bankia, we approach the social reality and work in different areas within the health context in which we find ourselves. Therefore, in this period of crisis, beyond the provisions establi- shed in relation to loans and credits, we have other measures that in the same way seek to make life easier for our customers:

Por Ser Tú

Por Ser tú (For Being You) is a program aimed at our clients that provides a series of advantages linked to banking services subject to the established conditions. 484,856 We make the collection of program fees more flexible for those families, SMEs and clients have benefited from the self-employed who are affected by the coronavirus crisis. flexibility measure of the Por Ser Tú Program due to the COVID-19

Fee-free cash withdrawal

At Bankia, we have made the collection of fees more flexible for customers with direct credit income who are suffering the consequences of the crisis caused by COVID-19. The aim is to facilitate cash withdrawals at ATMs, by eliminating the collec- tion of the fee charged to our customers at any national ATM. In addition, we extended the payment limit to 50 euros without the need to enter the PIN code in contactless operations, adapting our systems, to minimize possible contacts with the terminals.

Fractional insurance premiums

We continue to advance in the digitization of the company through fractional insurance premium service17 that allows customers to easily take out insurance and adapt premium payments to their needs.

In addition, during the months of April, May and June, the management fee was removed when contracting this service in order to mitigate the impact of the situation generated by the evolution of the COVID-19.

17 Solution that allows to divide the payments of the insurance premiums in 12 months and to group them all in a single monthly payment. 26 The impact of Bankia on the economy and society in 2019

Advance payment of pensions and unemployment benefits

More than In this challenging context, we want to go one step further and we offer our customers the advanced payment of retirement pensions and unemployment benefits. 6.8 We have also enabled the use of free SMS alerts for the payment of pensions and billion euro in advances of unemployment benefits so that our clients do not have to go to the branch and are unemployment and informed at all times of their operations. retirement benefits

"We are by your side" program

Aimed at customers over 65 years old who have their pension directly credited into their Bankia accounts to facilitate the life of elderly people with difficulties in carrying out basic daily activities, as they are a group at Telepharmacy 24 hours. risk. For this Telephone health enquiries reason we offer: and psychological support.

We do the shopping for you.

Suppliers' financial burden

As part of our commitment to a culture of integrity in our procurement processes, during the crisis caused by COVID-19, we continued to pay suppliers on time, regardless of whether they had been able to render 100% of service, in order to support their survival and help them maintain employment.

Therefore, we try to alleviate our suppliers' financial burden by maintaining remuneration for services, whether or not they can be provided due to current circumstances, with the requirement that they maintain the working conditions of the personnel providing the service at Bankia for the corresponding period.

27 The impact of Bankia on the economy and society in 2019

INTERNAL MEASURES FOR THE DEVELOPMENT OF THE ACTIVITY Lastly, internally we have operated quickly to guarantee the CONTINGENCY PLANS AND normal functioning of the bank's activity, respecting the limits MAINTENANCE OF SERVICES established by the circumstances. >90% of offices in operation The digital channels available to our >98% ATMs available clients have been strengthened, focusing investment on the SEPARATION OF CRITICAL TEAMS development of remote assistance and AND TELEWORKING 18 advisory capabilities to optimally meet >94% CS employees teleworking the growing demand of all our clients ≈50% branch employees teleworking beyond the on-site setting. REINFORCEMENT OF IT, In addition, we permanently monitor all our systems in order to CYBERSECURITY AND COMPUTER ensure online operations and customer service by all available Reinforcement of cybersecurity teams means, both in person and digitally. Infrastructure for teleworking

DEVELOPMENT OF DIGITAL CHANNELS Reinforcement of Customer Service Support in digital channels

DIGITIZATION AND USE OF CARDS IN THE CONTEXT OF COVID-19

57.1%19 39.9%19 10.99%20 12.94%20 DIGITAL CUSTOMERS DIGITAL SALES CARD STOCK CARD BILLING % of total customers % of total sales Bankia market share21 market share 21

+7.4pp +15.5pp +42pbs +61pbs compared to June 2019 compared to June 2019 compared to the first quarter 2019 compared to the first quarter 2019

pp percentage points pbs basic points

18 Central Services 19 June 2020 20 First quarter of 2020 21 Latest available market share figures. Source: Bank of Spain 28 The impact of Bankia on the economy and society in 2019

Regional Impact 6 The impact of Bankia on the economy and society in 2019

The impact promoted by Bankia has a special incidence in those autonomous regions where we have a greater presence

Among the impacted areas, we can highlight the Valencian 6 Community, where our headquarters are located, and the Community of , where our corporate headquarters are located.

1. Presence

2. Value

3. Commitment

4. Response

30 The impact of Bankia on the economy and society in 2019

1. Presence

IMPACT GENERATED BY THE DIRECT ACTIVITY

Community of Madrid 1 in 0.57% 164 of the GDP jobs 2,504,903 customers 631 branches EURm 1,356 18,950 6,624 employees impact on the economy jobs generated of Madrid More than 2,200 self-employed, SMEs and companies involved in the value chain

Valencian Community 1 in 0.24% 256 of the GDP jobs 1,614,689 customers 401 branches EURm 279 8,144 2,493 employees impact on the jobs generated Valencian economy More than 1,100 self-employed, SMEs and companies involved in the value chain

Andalusia 1 in 0.13% 674 of the GDP jobs 821,899 customers 321 branches EURm 217 4,628 1,778 employees impact on the jobs generated Andalusian economy More than 1,000 self-employed, SMEs and companies involved in the value chain

31 The impact of Bankia on the economy and society in 2019

Canary Islands 1 in 0.09% 687 of the GDP jobs 419,304 customers 101 branches EURm 43 1,319 677 employees impact on the Canarian jobs generated economy More than 270 self-employed, SMEs and companies involved in the value chain

Castile and Leon 1 in 0.12% 624 of the GDP jobs 338,281 customers 125 branches EURm 72 1,588 615 employees impact on the jobs generated Castilian-Leonese More than 330 self-employed, SMEs economy and companies involved in the value chain

Castilla La Mancha 1 in 0.14% 642 of the GDP jobs 341,539 customers 103 branches EURm 59 1,285 497 employees impact on the economy jobs generated of Castilla La Mancha More than 300 self-employed, SMEs and companies involved in the value chain

Catalonia 1 in 0.08% 1,227 of the GDP jobs 433,437 customers 135 branches EURm 194 2,803 887 employees impact on the jobs generated Catalan economy More than 800 self-employed, SMEs and companies involved in the value chain

32 The impact of Bankia on the economy and society in 2019

La Rioja 1 in 0.12% 247 of the GDP jobs 109,202 customers 51 branches EURm 24 569 271 employees impact on the economy jobs generated of La Rioja More than 100 self-employed, SMEs and companies involved in the value chain

Region of Murcia 1 in 0.37% 292 of the GDP jobs 475,378 customers 163 branches EURm 120 2,100 865 employees impact on Murcia's jobs generated economy More than 400 self-employed, SMEs and companies involved in the value chain

33 The impact of Bankia on the economy and society in 2019

2. Value

STIMULATING THE ECONOMY THROUGH FINANCING

Community of Madrid 1 in 2.46% 28 of the GDP jobs €12,066 million in financing EURm 5,669 111,869 impact on the jobs promoted economy of Madrid

Valencian Community 1 IN 2.10% 33 of the GDP jobs €2,323 million in financing EURm 2,353 62,901 impact on the jobs promoted Valencian economy

Andalusia 1 in 0.82% 129 of the GDP jobs €1,309 million in financing EURm 1,315 24,242 impact on the jobs promoted Andalusian economy

34 The impact of Bankia on the economy and society in 2019

Canary Islands 1 in 0.98% 62 of the GDP jobs €589 million in financing EURm 451 14,727 impact on the jobs promoted Canarian economy

Castile and Leon 1 in 1.51% 76 of the GDP jobs €531 million in financing EURm 886 12,980 impact on the economy jobs promoted of Castille and Leon

Castilla La Mancha 1 in 0.60% 122 of the GDP jobs €406 million in financing EURm 253 6,748 impact on the economy jobs promoted of Castilla La Mancha

Catalonia 1 in 1.18% 90 of the GDP jobs €2,567 million in financing EURm 2,728 38,025 impact on the jobs promoted Catalan economy

35 The impact of Bankia on the economy and society in 2019

La Rioja 1 in 1.04% 63 of the GDP jobs €187 million in financing EURm 88 2,215 impact on the jobs promoted economy of La Rioja

Region of Murcia 1 in 2.70% 52 of the GDP jobs €752 million in financing EURm 843 11,730 impact on Murcia's jobs promoted economy

36 The impact of Bankia on the economy and society in 2019

3. Commitment

FINANCING OF RENEWABLE ENERGY PROJECTS AT THE REGIONAL LEVEL

Navarra Wind Project MW 93.6 of installed power Tons 22 128,000 of CO2 avoided

Extremadura Photovoltaic Project MW 10 of installed power Valencian Community Tons Photovoltaic Project 22 13,700 of CO2 avoided MW 34.8 of installed power Tons 42,460 of CO2 avoided

Castilla La Mancha Murcia Photovoltaic Project Photovoltaic Project MW MW 35,6 of installed power 149.94 of energy installed

Tons Thermosolar Project 22 205,500 of CO2 avoided MW 50 of installed energy Tons 22 117,300 of CO2 avoided

PROJECTS UNDER THE EQUATOR PRINCIPLES

Ablitas & Cabanillas II Grullas- Pedroso/Grullas- CSF Turroneros Aldea Moret wind farms Peñaflor/Monclova Photovoltaic solar plant Photovoltaic solar plant Photovoltaic solar plants

Financing of the construction, Financing the construction, Financing of the Financing of the commissioning and operation commissioning and operation construction, commissioning construction, commissioning of the two wind farms located of a photovoltaic plant and operation of a and operation of a in Navarra. located in Seville. 35MW PV plant located in 35MW PV plant located in Xixona (Alicante). Malpartida (Cáceres). €65 million €59 million €19.2 million €4 million Financing volume Financing volume Financing volume Financing volume €32.5 million €29.5 million €19.2 million €4 million Bankia contribution Bankia contribution Bankia contribution Bankia contribution

22 Estimate. 37 The impact of Bankia on the economy and society in 2019

REGIONAL DISTRIBUTION OF INVESTMENT IN SOCIAL INITIATIVES23

La Rioja 2.9%

Castille and Leon

3.5% Catalonia 1% Community of Madrid 8.3% Valencian Community 9.3% Castilla La Mancha 1.9%

Canary Islands 3.6%

Murcia Region 5.8% Andalusia 8.1%

National projects 49.9% Autonomous Regions with greater presence of Bankia Other Autonomous Communities 5.7%

REGIONAL DISTRIBUTION OF THE MORE THAN 600,000 BENEFICIARIES OF THE SOCIAL INITIATIVE PROJECTS

La Rioja 33,131 Asturias Cantabria Basque country 615 123 1,481 Navarra Galicia 1,863 14,421 Aragon 207 Castile and Leon

28,259 Catalonia 5,701 Community of Madrid 111,934 Valencian Community 101,565 Castilla La Mancha 18,209 Balearic Islands 52,813 Extremadura Canary Islands 14,626 21,130

Region of Murcia 103,043 Andalusia 53,769 Ceuta Melilla Autonomous Regions with greater National Projects 23,036 85 16 presence of Bankia International 22,472 Other Autonomous Communities

23 Social initiatives without including Foundation, sponsorships or Bankademia. 38 The impact of Bankia on the economy and society in 2019

4. Response

REGIONAL BREAKDOWN24 OF BANKIA'S RESPONSE IN THE CONTEXT OF COVID-19

Financing25

Castile and Leon La Rioja Total amount Total amount €503 million €170 million 26 26 ICO amount ICO amount Catalonia €262 million €86 million Total amount Number of operations Number of operations €2.7 billion 2,960 760 ICO amount26 Number of ICO operations Number of ICO operations €1.12 billion 1,480 400 Number of operations 6,500 Community of Madrid Number of ICO operations Total amount 3,720 €11 billion ICO amount26 €2.53 billion Number of operations Valencian Community 16,000 Total amount Number of ICO operations €1.95 billion 10,000 ICO amount26 €1.05 billion Number of operations 9,720 Number of ICO operations Canary Islands 5,230 Total amount €624 million ICO amount26 €364 million Murcia Region Number of operations Total amount 2,775 €650 million Number of ICO operations Andalusia Castilla La Mancha ICO amount26 1,700 Total amount Total amount €311 million €1.1 billion €316 million Number of operations ICO amount26 ICO amount26 3,840 €511 million €155 million Number of ICO operations Number of operations Number of operations 1,900 6,830 2,540 Number of ICO operations Number of ICO operations 3,330 1,235

24 Breakdown of Bankia's main regions of activity. 25 As of June 30, 2020. 26 Total amount of credits and loans partially guaranteed by the ICO. 39 The impact of Bankia on the economy and society in 2019

Moratoriums27

Castile and Leon La Rioja Mortgage loans Mortgage loans 990 835 Consumer loans Consumer loans 1,680 887 Total amount Total amount €92 million €91 million Catalonia Mortgage loans 4,160 Consumer loans 3,135 Community of Madrid Total amount €557 million Mortgage loans 8,700 Consumer loans 16,200 Total amount Valencian Community €1.18 billion Mortgage loans 7,130 Consumer loans 9,000 Canary Islands Total amount Mortgage loans €680 million 2,780 Consumer loans 5,200 Total amount Murcia Region €280 million Mortgage loans Andalusia Castilla la Mancha 2,250 Mortgage loans Mortgage loans Consumer loans 7,000 1,125 1,510 Consumer loans Consumer loans Total amount 5,500 1,570 €197 million Total amount Total amount €650 million €105 million

27 As of 30 June 2020. 40