INTEGRATED CORPORATE REPORT [2014] INTEGRATED CORPORATE REPORT [2014] How to navigate around this PDF - Go to main index CAIXABANK IN 2014 CHAIRMAN OUR VIEW ON BANKING - Back LETTERS CEO ACTIVE RISK MANAGEMENT XLS - Next ABOUT US FINANCIAL reporting AND RESultS - Search Corporate GOVERNANCE COMMITMENTS IN 2014 AND CHALLENGES IN 2015 - Print KEY StrategieS APPENDICES - Download as Excel - Post on Facebook - Post on Twitter - Send e-mail Selectable menu with chapters This PDF is configured to be viewed using Adobe Acrobat (version 9). Some functions may not work with other platforms. Translation of a report originally issued in Spanish. In the event of a discrepancy, the Spanish-language version prevails. [2] INTEGRATED CORPORATE REPORT [2014] The UN Global Compact Principles GRI: G4-DMA, G4-15, G4-16, G4-33 CaixaBank is a member of the United Nations Global Compact and chairs the Spanish Global Compact Network. Principle 1 Businesses should support and respect the protec- Principle 6 Businesses should support the elimination of discrim- The Principles of the United Nations tion of internationally proclaimed human rights. ination in respect of employment and occupation. Global Compact covered in the text are presented at the beginning of each Principle 2 Business should make sure that they are not Principle 7 Businesses should take a precautionary approach section of this report, which also serves complicit in human rights abuses. to environmental challenges. as a progress report in that regard. Principle 3 Businesses should uphold the freedom of asso- Principle 8 Businesses should undertake initiatives to pro- The complete corresponding Global ciation and the effective recognition of the right mote greater environmental responsibility. Reporting Initiative (GRI) indicators to collective bargaining. (version G4) are also shown. The GRI has established a series of indicators, Principle 4 Business should support the elimination of all Principle 9 Business should encourage the development and now global standards, to measure forms of forced and compulsory labour. diffusion of environmentally friendly technologies. companies' level of commitment to economic, environmental and social Principle 5 Businesses should uphold the effective abolition Principle 10 Businesses should work against corruption in all issues. For more information on the of child labour. its forms, including extortion and bribery. indicators, please see Appendix 2. NOTE: The non-financial information disclosed in this report has been verified by Deloitte according to the terms set forth in the independent assurance report attached as Appendix 3. Economic and financial information was obtained from the audited 2014 financial statements of the CaixaBank Group, available on our corporate website. [3] INTEGRATED CORPORATE REPORT [2014] [Contents] CaixaBank in 2014 ................................................................[5] 5 Active risk management ..............................................[124] Letters from the Chairman and CEO .................................[10] 5.1 Global risk management 5.2 Credit risk management 1 About us ..........................................................................[12] 5.3 Market risk management 5.4 Interest rate risk management 1.1 Our mission 5.5 Liquidity risk management 1.2 CaixaBank Group structure 5.6 Operational risk management 1.3 Shareholder structure 5.7 Compliance risk management 5.8 Reputational risk management 2 Corporate governance ......................................................[23] 5.9 Actuarial risk management 2.1 Governance model 5.10 Legal and regulatory risk management 2.2 Business ethics 5.11 Equity position risk management 5.12 Risk control 3 Key strategies..................................................................[36] 6 2014 financial reporting and results ............................[155] 3.1 Results of the 2011-2014 Strategic Plan 3.2 2015-2018 Strategic Plan 6.1 Milestones during the year 6.2 Results 4 Our view on banking ......................................................[46] 6.3 Business activity 6.4 Quality of loan book 4.1 What we do: the nuts and bolts of our business model 6.5 Capital management 4.2 How we do it: corporate culture 6.6 Ratings 4.3 Why we do it: commitment to people and communities 7 Commitments in 2014 and challenges for 2015 ..........[170] 7.1 Commitments in 2014 7.2 Challenges for 2015 Appendices: .....................................................................[183] 1. Materiality study 2. Summary of GRI indicators 3. Assurance report [4] CAIXABANK IN 2014 RELEvANT iNFORmatiON OUR VIEW ON BANKING LETTERS SHARE PRICE ACTIVE RISK MANAGEMENT INTEGRATED CORPORATE REPORT [2014] PERFORMANCE lalaCCaiaixxaa ABOUT US FINANCIAL reporting AND RESultS Corporate GOVERNANCE COMMITMENTS 2014 AND CHALLENGES 2015 SSegellegellss KEY StrategieS APPENDICES [CaixaBank in 2014] GRI: G4-9, G4-EC1 CatalàCatalà Strong commercial capacity, with a leading multichannel management approach MillorMillor BancBanc deldel MónMón Go-toMillorMillor bank InnovacióInnovació for nearly 1 in BancBanc4 banking ambamb l’Esperitl’Esperit customers mésmés in Spain CertificatCertificat EuropeuEuropeu MillorMillor BancaBanca PrivadaPrivada enen InnovacióInnovació TecnològicaTecnològica deldel MónMón enen CanalsCanals InnovadorInnovador deldel MónMón 20142014 dede MàximaMàxima Excel·lènciaExcel·lència d'Espanyad'Espanya 20152015 20132013 ii 20142014 TecnològicsTecnològics MillorMillor InnovacióInnovació enen enen lala GestióGestió ProductesProductes ii ServeisServeis most extensive branch 20132013 ii 20142014 network in Spain Online banking mobile banking Payment methods Employees 5,251 13.7 branches 10.0 3.4 million cards 31,210 million million active people 9,544 customers customers 266,240 CastellàCastellà 13.4 ATMs under contract PoS installed million MejorMejorcustomers BancoBanco deldel MundoMundo MejorMejor InnovaciónInnovación BancoBanco concon elel EspírituEspíritu másmás CertificadoCertificado EuropeoEuropeo MejorMejor BancaBanca PrivadaPrivada enen InnovaciónInnovación TecnológicaTecnológica deldel MundoMundo enen CanalesCanales InnovadorInnovador deldel MundoMundo 20142014 dede MáximaMáxima ExcelenciaExcelencia dede EspañaEspaña 20152015 20132013 yy 20142014 TecnológicosTecnológicos MejorMejor InnovaciónInnovación enen enen lala GestiónGestión ProductosProductos yy ServiciosServicios 20132013 yy 20142014 Prepared to lead the sector in trust and profitability AnglèsAnglès BestBest RetailRetail BankBank TechnologyTechnology ProductsProducts BankBank withwith thethe MostMost InnovativeInnovative EuropeanEuropean CertificateCertificate BestBest PrivatePrivate BankingBanking forfor TechnologyTechnology InnovationInnovation ofof thethe YearYear 20142014 SpiritSpirit inin thethe WorldWorld 20142014 ofof ExcellenceExcellence ServicesServices inin SpainSpain 20152015 20132013 andand 20142014 DeliveryDelivery ChannelsChannels BestBest ProductProduct andand inin ManagementManagement WinnerWinner ServiceService InnovationInnovation 20132013 andand 20142014 [5] CAIXABANK IN 2014 RELEVANT INFORMATION OUR VIEW ON BANKING LETTERS SHARE PRICE ACTIVE RISK MANAGEMENT PERFORMANCE INTEGRATED CORPORATE REPORT [2014] ABOUT US FINANCIAL REPORTING AND RESULTS Corporate GOVERNANCE COMMITMENTS 2014 AND CHALLENGES 2015 KEY StrategieS APPENDICES Commercial strength, boosting market share in main products and services Sustained ability to generate revenue and cut costs Total funds Gross loans Net interest income Net fees and commissions €4,155 €1,825 €271,758 €197,185 million million million million Chg. Chg. Chg. Sector Chg. Sector* +5.1% +5.2% +3.9% -4.8% -5.2% +3.7% Recurring operating Recurring pre-impairment *Source: ”la Caixa” Research (change in ORS loans + public administration loans) expenses income €3,773 +18.0%* market share* and ranking million Direct deposit Direct pensions Card POS Life-savings Demand Demand + time of salaries deposits turnover turnover insurance deposits deposits (ORS) Chg. -4.4% 23.1% 20.0% 21.4% 24.8% 21.7% 15.5% 14.4% 1st 1st 1st 1st 1st 1st 1st Robust results SNCE (electronic mortgage Loans (SPR) Pension plans Commercial mutual Factoring and Profit attributable to the Group settlement system) loans loans funds** reverse factoring 16.0% 15.9% 15.1% 19.9% 18.2% 15.3% 19.6% €620 Chg. million 1st 1st 1st 1st 2nd 2nd 3rd +96.3%** *In 2013, did not include €-267 million for the impact of the new recognition of Deposit Guarantee Fund contributions, nor €-839 million in Group restructuring costs. *December 2014 Source: Bank of Spain **The 2013 income statement has been adjusted in accordance with the new recognition of [6] **Ranked #1 including the impact of Barclays Bank SAU contributions to the Deposit Guarantee Fund, in application of IFRIC 21 and IAS 8. CAIXABANK IN 2014 RELEVANT INFORMATION OUR VIEW ON BANKING LETTERS SHARE PRICE ACTIVE RISK MANAGEMENT PERFORMANCE INTEGRATED CORPORATE REPORT [2014] ABOUT US FINANCIAL REPORTING AND RESULTS Corporate GOVERNANCE COMMITMENTS 2014 AND CHALLENGES 2015 KEY StrategieS APPENDICES Prudent risk management with adequate coverage High coverage ratios Risk management Reduction in non-performing loans Real estate commercial activity 55% 55% in the past year for NPLs for available-for-sale foreclosed real estate €5,255 M €2,512 M assets Financially sound: high liquidity and solvency levels Liquidity Solvency €30,740 M Unused ECB discount facility Loan-to-deposits Leverage ratio 12.1% €56,665 CET1 fully loaded million €25,925 M 104.3%