"la Caixa" sustains high levels of solvency (Core Capital 8.6%) and liquidity (19,638 million), with NPLs under control (3.71%) and coverage increased to 70%

The "la Caixa" Group recorded recurring net profit of €1,507 million, without making use of its general insolvency provisions and with a strong commercial performance

• The Group maintained a high level of solvency, with core capital of 8.6%, a Tier-1 ratio of 9.9% and a Capital ratio of 11.8%. The Group’s liquidity remains among the highest in the Spanish financial system at 19,638 million euros, practically all of which is immediately accessible.
   
• Consistent with the “la Caixa” Group’s strategy of extreme prudence, total allowance coverage of 2,651 million has been set aside, mostly against loan insolvencies, to further reinforce the balance sheet. Allowance coverage improved once again, to 70% (140% including mortgage guarantees), with an NPL ratio of 3.71%.
   
• No use was made in 2010 of the general allowance fund, which has held at 1,835 million euros since the close of the 2009 financial year thanks to the Group’s ability to generate income, offering real financial robustness against future adverse circumstances. Extraordinary net capital gains of 634 million euros have been fully allocated to provisions, with an additional allocation of 200 million euros net of taxes to allow for future business management.
   
• Operating costs were down 4%, which combined with the Group’s powerful commercial capacity to generate a net operating income figure of 3,323 million euros, with a cost-toincome ratio of 43.6%.
   
• A strong performance from the branch network amid a difficult climate helped business volumes rise to 437,443 million (+5.2%), driven by the customer loan portfolio, which grew by 6.5%, and total customer funds, which were up by 4.2%. The Group continues to reinforce its leading position in the Spanish banking sector, increasing its market shares in key areas.

NOTE.- In so far as it relates to income from investments, this financial information from the “la Caixa” Group for 2010 has been prepared mainly on the basis of estimates, and cannot under any circumstances be used to make forecasts regarding the 2010 results of Criteria CaixaCorp, a subsidiary of the “la Caixa” Group.

Barcelona, January 28, 2011

Summary