THERE IS ANOTHER WAY
CORPORATE BANKING “There is always one more step to take”
This sums up our character, the effort and innovation of our vocation.
We are a cooperative bank, created to support both businesses and society at large. We are fully committed to doing so, establishing synergies and trust relationships, because through team work we can generate growth and progress.
We believe in a different kind of bank, one that evolves with people and adapts to their needs. This desire for change is also what ensures we keep our principles based on solidarity and cooperation, supporting culture and education, and creating jobs and opportunities for entrepreneurship.
Belonging to the Mondragon Corporation allows us to be part of a globally recognized business group and to bring that added value to our customers on a global scale.
Our excellent levels of solvency, liquidity and efficiency prove that we are on the right track, that there is another way for banking.
Txomin García PRESIDENT OF LABORAL Kutxa Our values
01 TRUST Our understanding of banking is based on trusting one LABORAL Kutxa, another. For this reason, honesty and respect are the key Cooperative Banking principles from which we work. 02 COMMITMENT We are a cooperative banking project; our goal is LABORAL Kutxa’s employees are committed to this different to that of the traditional model. We follow project and we see it as something uniquely ours that a different way of banking: we grow with people we are willing to share with our customers. and companies.
The shareholder employees of LABORAL Kutxa PARTICIPATION make all the difference and bring a strong 03 We know that we are stronger together; sharing ideas competitive advantage, since we see any project and effort allows us to offer more secure and profitable as our own. We are aware that together, we are solutions. stronger, and sharing ideas and efforts allows us to offer more secure and profitable solutions. OPENNESS TO CHANGE Thanks to the union between our expertise in 04 banking and Lagun Aro’s in insurance, we are We are not prepared to settle for something that isn’t continuing to bring forth initiatives to improve the best, we are open to learning and change. Thanks to our services. In this new business model, each this we keep improving and growing. branch is staffed with specialists in insurance and personal banking. In addition to this, there is a separate, independent network for business THE DESIRE TO IMPROVE banking. 05 All the people who work at LABORAL Kutxa share one In this sense, we have exceeded our goals, thing in common: the willingness to keep moving forward. becoming one of the most solvent entities in This common energy transforms every obstacle into an the sector and leaders in quality of service and opportunity to evolve. customer satisfaction. 06 SOCIO-BUSINESS PROFITABILITY Striving for continuity and excellence in the quality of our services ensures our effectiveness in business.
CORPORATE BANKING Profit distribution
We are a part of society, and because of this, 25% of our profits are reinvested back into society through the Mondragon Corporation.
We generate employment by creating new cooperatives or helping those in difficulties; we collaborate with culture, the Basque language and sports, and, through Mondragon University or our 13 research centres, we support education and innovation. This makes society grow and we grow with it.
The remaining 75% is spent developing and optimizing our branch network, improving services and implementing of new systems, ensuring transparency and functionality in all our areas.
In this way, we stand by our principles of cooperation, innovation and mutual support in 15% COOPERATION order to ensure future business development. 10% EDUCATION 75% DEVELOPMENT
CORPORATE BANKING Significant details For the year 2012, in thousands of euros SOLVENCY
Solvency ratio 11.16% Capital Principal* 10.96%
TURNOVER *(as defined by Spanish Royal Decree-Law 2/2011)
CREDIT RISK
Equity At-risk Provision 1,316,698 loans for insolvencies 1,214,312 Total Assets 976,548 24,363,689 Delinquency Rate 6.95%
Coverage of at-risk loans 80.42%
PROFITABILITY AND EFFICIENCY
Net interest Operating Net spread costs income
65,055 33,826 22,087 Loans to customers 16,502,364 Efficiency (%) Operating costs/gross Customer deposits margin 41.60% 18,635,657
FURTHER INFORMATION
Clients Branches Shareholder employees 1,300,000 2,235 RATINGS Individual Short term Long term 979 Women Moody’s D+ NP Ba1 1,256 Fitch-Ibca bbb F3 BBB 450 Men
CORPORATE BANKING Balance Sheet For the year 2012, in thousands of euros
ASSETS LIABILITIES
Cash and deposits at Trading portfolio 12,505 Central Banks 354,828 Financial liabilities Trading portfolio 135,094 at amortized cost 22,784,058
Other financial assets Hedging derivatives 81,193 held at fair value through P&L 9,910 Provisions 49,112
Financial assets available Tax liabilities 79,673 for sale 3,660,239 Social work fund 4,658 Loans and receivables 16,802,634 Other liabilities 26,552 Investment portfolio at maturity 1,746,737 Total Liabilities 13,037,749
Hedging derivatives 447,456
Non-current assets for sale 348,556
Holdings and shares 114,703
Tangible and intangible assets 403,876 Equity 1,318,698
Tax assets 327,594 Valuation adjustments 7,242
Other assets 22,260 Total Equity 1,325,940
Total Assets 24,363,689 Total Liabilities and Equity 24,363,689
CORPORATE BANKING Profit and Loss Statement For the year 2012, in thousands of euros
MAIN SECTIONS
Profit before write-downs 47,619 Operating costs 33,926
Receivables and financial assets Net interest spread 65,055 available for sale 15,346
Net fees 16,162 Assets awarded 7,936
Income from Capital Fixed assets and shares 1,100 Instruments and Financial Operations 2,165 Contingent liabilities and others 898
Other operating costs -1,837 Provisions and other write-downs 25,280
Gross Margin 81,545
Total Profit 22,087
CORPORATE BANKING Our companies
In terms of organization, Mondragon is made up of four areas: Finance, Industry, Retail and Knowledge.
Full list of companies in www.mondragon-corporation.com Mondragon,
a pioneering business group INDUSTRY DOMUSA RETAIL EDESA AUZO-LAGUN FAGOR Mondragon Corporation is the outcome of the EREIN COMERCIAL LKS EROSKI ORBEA cooperative movement begun in the Basque FORUM SPORT ORONA Country in 1956. It is a competitive business SEI ULMA organization whose management ideals are based on democratic methods, the instrumental nature of capital and social responsibility. Its corporate philosophy is reflected in its corporate values:
Cooperation ı Participation ı Social Responsibility ı Innovation
Its corporate culture involves basic customer oriented targets, innovation, development and inter-cooperation. For this reason, through a planned globalization process, Mondragon Corporation has expanded its presence worldwide, so that international business has become a high percentage of the total volume.
Mondragon Corporation is currently the leading KNOWLEDGE business group in the Basque Country and EDERTEK the seventh in Spain, as well as the largest IKERLAN cooperative group in the world. FINANCE LEA ARTIBAI MONDRAGON UNIVERSITY LABORAL Kutxa ORONA EIC LAGUN ARO OSARTEN
CORPORATE BANKING Germany n 6 Poland n 6 Mondragon, a global project The Netherlands n 1 NATIONAL AND INTERNATIONAL PRESENCE Czech Republic n 8 Belgium n 2 Taiwan n 1
n U.S.A. n 1 UK n 3 Slovakia 2 China n 1 n 4 n 13 289 Russia n 1 n ENTITIES Mexico n 1 Ireland 1 n 7 France n 16 Romania n 2 110 COOPERATIVES
147 AFFILITATE PARTNERSHIPS AND CORPORATIONS
8 FOUNDATIONS
1 INSURANCE COMPANY
10 TRADING ENTITIES
13 INTERNATIONAL SERVICES
Vietnam n 1 15,162 Portugal n 4 EMPLOYEES Colombia n 1 Brazil n 1 Morocco n 1 Thailand n 1 n 6 India n 1 Australia n 1 Chile n 1 Italy n 4 n 4
n Corporate offices (9) Turkey n 2 n Subsidiaries (94)
CORPORATE BANKING BUSINESS DEVELOPMENT EMPLOYMENT
Total assets Equity Average workforce Accident Rate (Industrial area) 35,887 3,999 3,943 83,569 32,454 80,321
2011 2012 2011 2012
35.9 34.1
EBITDA LABORAL Kutxa customer deposits 18,209 18,636
1,302 1,289 2011 2012 2011 2012
2011 2012 2011 2012
% employee shareholders in cooperatives % of female employee Lagun Aro endowment fund Total revenue (Industrial area) shareholders in cooperatives 14,832 14,081
4,876 85 4,532 82
43 43 2011 2012 2011 2012
Total sales (Industry and Retail) Net investment
13,969 12,903
2011 2012 2011 2012 331 194
2011 2012 2011 2012
CORPORATE BANKING PWC report
PARTICIPATION
Social capital of shareholder Number of shareholder employees employees in governing bodies 1,838 1,816 872 872
2011 2012 2011 2012
SOLIDARITY
Resources for public works Number of students in education centres 11,348 17.2 9,304 18.4
2011 2012 2011 2012
ENVIRONMENTAL MANAGEMENT
Current ISO 14000 certifications ECODISEÑO certifications
60 6 6 59
2011 2012 2011 2012
COMMITMENT TO THE FUTURE
% resources for R&D Number of technology Total number of researchers Industry Area centres and R&D units 2,096 15 14 1,885 9.1 9
2011 2012 2011 2012 2011 2012
CORPORATE BANKING www.laboralkutxa.com