Banco 10th Annual European Financials Conference Banco Urquijo Acquisition

Juan Maria Nin. Consejero Delegado Disclaimer

Banco Sabadell cautions that this presentation may contain forward looking statements with respect to the business, financial condition, results of operations, strategy, plans and objectives of the Group. While these forward looking statements represent our judgement and future expectations concerning the development of our business, a certain number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market, macroeconomic, governmental, political and regulatory trends, (2) movements in local and international securities markets, currency exchange rates, and interest rates, (3) competitive pressures, (4) technical developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparts. These risk factors could adversely affect our business and financial performance published in our past and future filings and reports, including those with the Spanish Securities and Exchange Commission (Comisión Nacional del Mercado de Valores). Financial information by business areas is presented according to GAAP as well as internal Banco Sabadell group´s criteria as a result of which each division reflects the true nature of its business. These criteria do not follow any particular regulation and can include forecasts and subjective valuations which could represent substantial differences should another methodology be applied. The distribution of this presentation in certain jurisdictions may be restricted by law. Recipients of this presentation should inform themselves about and observe such restrictions. These slides do not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any securities nor shall they or any one of them form the basis of or be relied on in connection with any contract or commitment whatsoever. 2 Thinking ahead

Why Banco Urquijo?

Transaction terms

Synergies and capital implications

Valuation multiples

Transaction implications

Next steps 3 Thinking ahead

Retail banking competition levels require critical size in order to face the necessary IT, human capital, CRM and other investments.

The medium term outlook might be softer than in recent years, particularly in the mortgage business.

Only organic growth combined with acquisitions will grant sustainable growth.

4 Thinking ahead

Organic growth + selected acquisitions

Banco Urquijo Acquisition 50,000 4.5

45,000 4 % 40,000 25 06: 3.5 35,000 1Q 95– 3 30,000 19 Banco Atlántico Acquisition 2.5 25,000 CAGR 2 20,000 Banco Herrero

Acquisition 1.5 15,000 NatWest España

Banco de 1 10,000 Acquisition

5,000 0.5

0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

From 2004 figures according to IAS Customer loans (M€) NPL (%) 5 Thinking ahead

Why Banco Urquijo?

Transaction terms

Synergies and capital implications

Valuation multiples

Transaction implications

Next steps 6 Why Banco Urquijo?

Banco Sabadell will become a top-player in domestic Private Banking.

Easy business integration and high level of synergies with a low execution risk.

Complementary for brokerage and investment banking business.

Boosts the potential of the SME & Personal Banking business.

7 Why Banco Urquijo?

Main highlights

VOLUMES RESULTS Loans to customers 2,002 Gross operating income 132 Customer funds 5,540 Operating expenses 102 Net Profit 10 CLIENTS 75,000 RATIOS RESOURCES NPL ratio 0.7% Employees 824 Cost/Income ratio 74.5% Branches 60 ROE 4.6%

Euros in millions. December 2005 8 Why Banco Urquijo?

Business Volume Mix 2,002M€ 5,540M€ Loans to customers Customer funds

Other Repos Other 9% 1% Leasing 11% Mortgages AuM 2% 47% Term 37% Deposits 6%

Sight Deposits Other 13% Loans 36%

Commercial SICAVs Lending 32% 6% 9 Why Banco Urquijo?

Asturias 3% País Vasco 1% 8% Navarra Business volumes Cantabria 2% 2% Castilla 1% y León Aragón Cataluña 2,002M€ 2% 2% 16% Madrid Loans to customers 41% Valencia 9% 5,540M€ Murcia Customer funds Andalucía 1% 11%

Canarias 1%

10 Why Banco Urquijo?

Asturias País Vasco 9% 2% 10% 75,125 Galicia Cantabria Navarra 3% 2% Customers Castilla La Rioja y León 2% Aragón Cataluña 3% 2% 13% 7,300 (10%) Madrid 32% Valencia Private banking 6%

Murcia 61,000 (81%) Andalucía 2% 13% Retail banking

Canarias 1% 6,825 (9%) SMEs

11 Why Banco Urquijo?

Asturias País Vasco 4 60 1 5 Galicia Cantabria Navarra Branches 3 La Rioja 1 Castilla 1 y León Aragón Cataluña 3 1 8 422 Madrid 17 Valencia Network employees 4 Baleares 1

Murcia 108.4M 1 Andalucía Total revenues 8 Canarias 2

12 Why Banco Urquijo?

Human capital

45 years 19 years avg. age avg. seniority

5% 11% >35 years >55 years 20% <36 years 38% 33% 26-35 <11years 44% years 46-55 25% years 36-45 years 24% 11-20 years

13 Why Banco Urquijo?

Gross operating income contribution by business unit * 40% merged Commercial Banking directly into 33% Sabadell Banca Private Privada Banking 40% 60% “cut & paste” into personal and SME banking

Others SME Banking 9% 18%

* As of December 2005, excluding extraordinary items.

Banca Privada: AuM >= 300.000€ 14 Thinking ahead

Why Banco Urquijo?

Transaction terms

Synergies and capital implications

Valuation multiples

Transaction implications

Next steps 15 Transaction Terms

Goodwill 760.0

-232.3

-57.8 -68.0 401.9

Acquisition Urquijo Book Unrealised Intangibles Goodwill Price Value 2005 Capital Gains

Euros in millions 16 Transaction Terms

This transaction will be paid fully in cash and funded with internally generated resources.

Thanks to the solid capital structure of Banco Sabadell, 7.2% core capital, no capital increase is needed.

Core capital as of March 2006. 17 Thinking ahead

Why Banco Urquijo?

Transaction terms

Synergies and capital implications

Valuation multiples

Transaction implications

Next steps 18 Synergies Calendar

15% 70% 100%

38.4

6.8 26.9 3.3

31.6 5.6 23.6 0.3 5.3

2006e 2007e 2008e Cost Synergies Revenue Synergies Euros in millions. After-tax synergies. 19 Costs Synergies

3.8 Integration of back office and head office functions to reduce combined cost base 11.1 Leverage on the existing 31.6 state-of-the-art IT platform of Banco Sabadell and integration expertise 16.7 Streamlining current branch network

Personnel Costs IT platform Administrative Total Costs

Euros in millions. 20 Branches

Branch integration plan: PRIVATE BANKING 9 Network strengthened : x2.2 times

25 COMMERCIAL & SME BRANCHES 60 2 Integration within SabadellAtlántico

24 CLOSURES Due to branch proximity

Total Private Commercial SME Banking CLOSURES Banking Banking

21 Revenue Synergies

High leverage potential in loyalty and cross-selling

Wider branch network 3.6 More competitive services

6.8 Comprehensive product portfolio

A quantum leap in private banking 3.1 Personal & SME banking models

Private Banking Personal Banking & Total SME

Euros in millions 22 Impact on Capital

Core capital

7.18%

5.95% 5.96% Internally-funded transaction while maintaining solvency ratios in line with the sector.

(2) Banco Sabadell B.Sabadell + Sector average B.Urquijo (1)

As of March 2006. (1) Proforma. (2) Including SAN, BBVA, POP, BTO and BKT. 23 Thinking ahead

Why Banco Urquijo?

Transaction terms

Synergies and capital implications

Valuation multiples

Transaction implications

Next steps 24 Valuation Multiples

Private B. Banco Banco Europe* Urquijo Atlántico

PER 16.5x 16.6x 1 13.1x

P/BV 2.2x 2.6x 2 2.0x

1. PER 2006 including fully phased-in synergies. 2. PVC 2005 adjusted for unrealised capital gains (after tax) * Average of listed European private banking companies 25 Thinking ahead

Why Banco Urquijo?

Transaction terms

Synergies and capital implications

Valuation multiples

Transaction implications

Next steps 26 Transaction implications: Contribution to Banco Sabadell Group

Banco Banco Urquijo / (1) Proforma Sabadell Urquijo BS (%)

VOLUMES Customer funds 36,681 5,540 42,221 15.1% Gross loans to customers 44,878 2,002 46,880 4.5%

(1) RESULTS Gross operating income 1,591 132 1,723 8.3% Operating costs 804 102 906 12.7% Net profit 453 10 463 2.3%

RATIOS Cost/income ratio 46.6% 74.5% NPL ratio 0.45% 0.7% ROE 16.8% 4.6% Core Capital 7.2% 8.3%

RESOURCES Branches 1,104 60 1,164 5.4% Employees 9,466 824 10,290 8.7%

Euros in millions. As of March 2006. (1) Data as of December 2005. 27 Transaction implications: Contribution to Banco Sabadell Group SICAV’s Mutual & Pension Funds

2,387 +17% 14,566 12,466 +309%

584 260 94

Banco B.Sabadell + Banco B.Sabadell + (1) (1) Sabadell B.Urquijo Sabadell B.Urquijo Deposits Loans to Customers +4% 25,297 +4% 46,880 24,216 44,878

Banco B.Sabadell + Banco B.Sabadell + Sabadell B.Urquijo (1) Sabadell B.Urquijo (1)

Euros in millions. As of March 2006. 28 (1) Proforma as of December 2005. Transaction implications: Private Banking

40% 60% Commercial & SME A great private Banking: “Cut & Paste”

Banco Urquijo SBP SabadellAtlántico

29 Transaction implications: Private Banking

A great private bank

Banco Urquijo SBP

30 Transaction implications: Banco Urquijo SBP

Urquijo Urquijo BP/ SBP Proforma BP SBP (%)

VOLUMES Gross loans to customers 257 851 1,108 331.1%

Customer funds 2,055 2,788 4,843 135.7%

Custody 796 7,196 7,992 904.0%

RESULTS Gross operating income 14.9 46 61 308.7%

Operating costs 7.5 30 38 400.0%

Net profit 3.1 10 13 322.6%

CLIENTS 3,872 7,340 11,212 189.6%

Euros in millions. December 2005. 31 Transaction implications: Banco Urquijo SBP SICAV’s* Mutual & Pension funds *

1,939 1,745

+120% +272% 793 521

Banco Banco SBP Urquijo SBP SBP Urquijo SBP Deposits* Custody*

1,159 7,196 +56% 741 +904%

796

Banco Banco SBP Urquijo SBP SBP Urquijo SBP 32 * Proforma. Euros in millions. As of December 2005. Transaction implications: Banco Urquijo SBP

Bilbao Pamplona Private Banking network: Asturias La Coruña (2) 7 SBP branches Zaragoza 9 B.Urquijo branches Valladolid Castellón Madrid (2) Located in relevant Palma de economic areas Mallorca Sevilla Valencia

Málaga Specialised in providing wealth management to high Santa Cruz de Tenerife net worth individuals, family 16 Specialised businesses and institutions branches

33 Transaction implications: Reinforces market position Specialised Private Banking units business volumes

1 Banif Banca Privada ~26,000

2 Banco Urquijo SBP* ~11,000

Espirito ~4,250 3 Santo

4 UBS ~4,000 España 2nd 5 Altae ~3,800 ranked

* Proforma. Euros in millions. Source: El Mundo, 19 February 2006. 34 Transaction implications: Reinforces market position

Spain SICAVs market share (volume)

1 Santander 19.5%

2 BBVA 16.2%

3 Sabadell* 9.8%

4 Bancaja 5.1% 3rd 5 UBS 4.0% ranked

* Proforma (Banco Sabadell + Banco Urquijo).Source: CNMV. November 2005. 35 Transaction implications: Reinforces market position

Spain mutual funds market share

1 Santander 24.3%

2 BBVA 17.5%

3 Popular 4.3%

4 Sabadell* 4.0% 4th 5 3.6% ranked

* Proforma (Banco Sabadell + Banco Urquijo). Source: Inverco. March 2006. 36 Thinking ahead

Why Banco Urquijo?

Transaction terms

Synergies and capital implications

Valuation multiples

Transaction implications

Next steps 37 Integration Outlook

Implementation plan driven by clear-cut business model

Integration model based on Banco Atlántico expertise: “cut & paste”

Focus on value creation: fast synergies

Day-to-day management teams are responsible for the integration plan

38 Transaction Calendar

24/5/2006 Share purchase agreement

7/2006 Agreement fine-tuning after regulatory approval

4Q06 Legal merger

12/2006 Private banking business integration

2/2007 IT integration process concludes

39 Implementation Plan

2Q06 3Q06 4Q06 1Q07

Integration Integration SBP & Banco process process Urquijo Sabadell & design development Private Banco Urquijo Banking IT & operative Commercial First 60 IT & integration Plan days plan operative concludes integration

40 Integration Plan

Process design First 60 days plan Closing

Define integration process Capital gains plan Implement final operational model B.Urquijo 2006 targets review "quick wins“ execution Execute Inmediate contact with clients and Management of first integration plan employees stage of cost and revenue synergies Fulfill synergies Identify and launch merger integration team Global sizing Big Bang: operational and IT Operational management of B.Urquijo integration Compliance procedures B.Sabadell risk implementation model HHRR plan definition Development of “quick wins” and 60 days plan

1 month 2 months 6 months 41 First steps already taken

First contacts with top management

2006 budget reviewed

Meetings held with the sales force

Visits to clients in coordination with Banco Urquijo

The transaction has been notified to the regulators and the necessary authorisations have been requested

42 www.bancosabadell.com

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